1. Political and legal factors within the economic environment

2. Aims and objectives AIM: To understand how legal and political factors impact upon the economy and business. OBJECTIVES: 1.Understand how political factors influence business: Case study 2011 budget. 2.Research how legal factors influence business decisions. 3.Review P6A assignment. 4.Start the P6A assignment. AIM: To understand how legal and political factors impact upon the economy and business. OBJECTIVES: 1.Understand how political factors influence business: Case study 2011 budget. 2.Research how legal factors influence business decisions. 3.Review P6A assignment. 4.Start the P6A assignment.

3. By the end of the lesson….. All of you will be able to describe: LO1: How legal and political factors effect business. LO2: What key political and legal factors effect different business sectors. LO3: What the fiscal policy is. LO4:How key stakeholders are effected. Extension - analysing: The financial impact on businesses. Why these factors impacts business success. All of you will be able to describe: LO1: How legal and political factors effect business. LO2: What key political and legal factors effect different business sectors. LO3: What the fiscal policy is. LO4:How key stakeholders are effected. Extension - analysing: The financial impact on businesses. Why these factors impacts business success.

4. The P6 A assignment: Describe how 2 political/legal factors are impacting upon the business activities of the selected organisations and their stakeholders. (LCC and BA) You will need to: Examine the main factors which effect the organisations using headings & describe important changes using facts and figures to support your answer.

5. Lets think politics! Q & A Who is our current Prime Minister? David Cameron – Conservative Party Which Political Party is running the country? The Conservative Party and the Liberal Democrats: The 2010 Coalition agreement. What part of the trade cycle is the UK currently experiencing? A recession – A possible double dip! Who is our current Prime Minister? David Cameron – Conservative Party Which Political Party is running the country? The Conservative Party and the Liberal Democrats: The 2010 Coalition agreement. What part of the trade cycle is the UK currently experiencing? A recession – A possible double dip!

6. Last lesson Recap. The current economic climate strongly influences political decisions made by the government. Recap activity : The trade cycle. Consider how the cycle Influences political Decisions. The current economic climate strongly influences political decisions made by the government. Recap activity : The trade cycle. Consider how the cycle Influences political Decisions.

7. The Political structure International: Britain is part of the European Union: Free movement of goods/money/labour. National: The Prime Minister leads the ruling party and appoints: Senior Cabinet Ministers: who are in charge of key areas of government. Local: Councils are elected who represent their local populations. International: Britain is part of the European Union: Free movement of goods/money/labour. National: The Prime Minister leads the ruling party and appoints: Senior Cabinet Ministers: who are in charge of key areas of government. Local: Councils are elected who represent their local populations.

8. How do political decisions effect business ? Activity: Read the extract from the 24/3/2011 budget. Answer the questions that follow. Activity: Read the extract from the 24/3/2011 budget. Answer the questions that follow.

9. Political factors supporting different types of business Q&A How might the Government support: The Private Sector: Create a competitive environment. Incentives such as grants for new enterprise. Public Sector: Cover loses / subsidise non-profit activities, such as education and health. Voluntary Sector: Supports cash grants such as National Lottery and tax relief. How might the Government support: The Private Sector: Create a competitive environment. Incentives such as grants for new enterprise. Public Sector: Cover loses / subsidise non-profit activities, such as education and health. Voluntary Sector: Supports cash grants such as National Lottery and tax relief.

10. Supporting businesses through grants and schemes

11. Fiscal policy (Financial matters) can you think of different types of tax ? Direct tax Indirect tax Income tax VAT National InsuranceExcise duties Corporation taxAir passenger duty Capital gains tax Betting and gaming Council taxLand fill levy Can you think why the Government adds tax to items such as: Cigarettes Alcohol Betting Petrol Aviation fuel Increase in VAT from 17.5 % to 20% Extension task: The VAT calculator: http://www.bbc.co.uk/news/10373992http://www.bbc.co.uk/news/10373992

12. In summary: The Government supports and manages… Supports organisations Example…. Supports organisations Example…. Fiscal policies Example…. Fiscal policies Example…. Infrastructure and services Example…. Infrastructure and services Example…. Work skills Example….. Work skills Example….. Organisations who support business Example….. Organisations who support business Example….. Trading communities Example…. Trading communities Example….

13. Legal factors Company Law Providing framework for businesses Contract Law Protecting consumers under sale of Goods and Services Employment Law Employment contracts. Competition Law Ensuring fair and honest trading. Useful sites for research: http://tutor2u.net/business/gcse/external_environment_legislation.htm http://tutor2u.net/business/gcse/external_environment_legislation.htm Company Law Providing framework for businesses Contract Law Protecting consumers under sale of Goods and Services Employment Law Employment contracts. Competition Law Ensuring fair and honest trading. Useful sites for research: http://tutor2u.net/business/gcse/external_environment_legislation.htm http://tutor2u.net/business/gcse/external_environment_legislation.htm

14. Plenary & assignment task What have you learned so far ? P6 Task A : Research 2 Political and Legal issues which influence Leeds City College and British Airways. Research! books/ internet /read articles in the news. Don’t forget to discuss how stakeholders are effected! What have you learned so far ? P6 Task A : Research 2 Political and Legal issues which influence Leeds City College and British Airways. Research! books/ internet /read articles in the news. Don’t forget to discuss how stakeholders are effected!

15. For LCC consider Political What's happened recently? New qualifications ? Enterprise initiatives? Legal Every Child Matters Safeguarding Funding EMA Course funding 19+ ? Political What's happened recently? New qualifications ? Enterprise initiatives? Legal Every Child Matters Safeguarding Funding EMA Course funding 19+ ?

16. For BA Consider Political Strike action – Government intervention. Aviation fuel tax Increased price of fuel. Airport passenger duty. VAT Legal Redundancy Equality and diversity Political Strike action – Government intervention. Aviation fuel tax Increased price of fuel. Airport passenger duty. VAT Legal Redundancy Equality and diversity