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M3 - Unit 1 - Business Resources Essay

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The political, legal and social factors

In this section I will analyse how political, legal and social factors have impacted Manchester United and Sue Ryder. I will also consider which of the factors are most significant and what sort of impact they are having on Man U and Sue Ryder.   I will also analyse the changes in business planning that have resulted from these external changes and how are these two businesses coping with these changes?

Manchester United

The most important political factor for Manchester United is the tax. When the government decides to raise the tax rate this has a negative impact on Manchester United because this means they can not carry out given activities and this will prevent them from achieving their aims and objectives. If the corporation tax rises then this will mean Manchester United will have to pay a larger amount of tax on their over profit which will mean they will not be able to afford quality players and this will effect their match performance. By not being able to afford quality players this prevents Man U from achieving their aim which is to be the best team in the world! If Manchester can not afford best players due to high taxes then simply they will not win matches and lose their reputation.

The most important legal factor for Manchester united is the company law. This law favors Man U in numerous ways such as it provided a legal protection on the Glazers family’s personal belongings and it also limits on how much they will lose if the club does become bankrupt.

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