Legal Requirements

J-Sainsbury also does product endorsement, for example J-Sainsbury's used Jamie Oliver to introduce some food products like salads. J-Sainsbury's boosted there sales very high because of product endorsement. Errol Anderson motors on other hand is simpler and doesn't have that much capital to spend on advertising. Errol Anderson motors can advertise in local newspapers to make more people aware of the services he provides. Legal Requirements J-Sainsbury's and Errol Anderson motors both must comply with the law of the land.

In addition, they have to take serious note of their social obligations- to the environment, the community, and the general public and to customers. If they don't this could bring the attention of media and seriously damage the image of J-Sainsbury's and Errol Anderson motors. The government has a major responsibility to stop or prevent undesirable behaviour in society. For this reason J-Sainsbury's and Errol Anderson Motors are restricted by many laws and regulations, which constrain the way in which they operate. Health and Safety Legislation

The most important act relating to health safety is the health and safety at work act 1974. This places a legal responsibility on J-Sainsbury's and Errol Anderson motors and their employees in relation to health and safety issues. It has been designed to protect employees and the public from unsafe or dangerous work practices. The health and safety act states that J-Sainsbury's and Errol Anderson motors must provide the following to their employees, > A safe working environment and adequate welfare facilities > Information on health and safety > Safe entry and exit routes

These are just some things that J-sainsbury's and Errol Anderson motors must provide to their employees Also the health and safety act states that employees must, > Take responsible care of their own health and safety > Take responsible care for the health and safety of other people who may be affected by their actions Again these are just some of the duties of employees who work for J-Sainsbury's and Errol Anderson Motors. If there are more then five employees, which work for a business the employer must prepare a written document, which states company policy on health and safety, and circulate this to all employees.

This may not relate to Errol Anderson motors as he doesn't have more then five employees that work for him because his business is small, compared to J-Sainsbury's as J-Sainsbury's would definitely need more then five employees to run the store. Consumer protection legislation This has been designed to safeguard customers from being sold shoddy good, being misled over details of products or price The government makes all these laws and J-Sainsbury's and Errol Anderson motors have no control over, expect to follow and obey these laws or both businesses will be committing a crime, which is illegal. Environment influences

The environment is a big external influence to J-Sainsbury's and Errol Anderson motors. Some people who shops at J-Sainsbury's are very concerned with what they are eating, for example, organic foods and modified ingredients. People may have heard from media that it is very good to eat organic foods and not eating other products, which will mean J-Sainsbury's will make, looses on other products, which are not organic. This is just an example there are many more incidents like this, which can affect both businesses. J-Sainsbury's and Errol Anderson motors have no control over what people buy from them.

Errol Anderson Motors is also affected by environmental influence because people are worried about pollution from car fumes. More and more people are buying unleaded engine cars because unleaded petrol is cheaper and doesn't cause pollution. This can easily change for example if tomorrow a new petrol was introduced and everyone started buying cars which took that new petrol Errol Anderson would be affected because he may not have the knowledge to fix that particular car which will mean he will loss money. There also other external influences which affect both J-Sainsbury's and Errol Anderson motors.

They are factors like the interest rates, taxes and the European union. The interest rates are in the hands of the government and not in the hands of any business. The government can decide whether to increase or decrease interest rates. If the government decide to increase interest rates, this will have a big impact on J-Sainsbury's and Errol Anderson motors. I say this because costs of the business will go up. I think this will have more affect on Errol Anderson motors. I think this because Errol Anderson motors is a sole trader and is a small business.

If Errol doesn't get enough customers, he will be losing money, which may result in him closing down. Also J-Sainsbury's would be affected because shareholders may sell their shares and people would not be interested in J-Sainsbury's shares, this is because if the government put interest rates up J-Sainsbury's would be making less profit and it would be very hard for J-Sainsbury's financially. Another external influence would be income tax. If the government decided to raise income tax, this would mean people would be spending less money, as they will get less income.

If income tax were to go up then this would affect both J-Sainsbury's and Errol Anderson Motors. It would affect both businesses financially. If people started spending less money this will result in both J-Sainsbury's and Errol Anderson motors making a lower profit turnover. Also cooperation tax is a very important external influence. Cooperation tax is tax, which J-Sainsbury's and Errol Anderson motors have to pay because they are both businesses. If cooperation tax were to go up this would have a big affect on J-Sainsbury's and Errol Anderson motors.

It would cost the business a lot of money, which will mean J-Sainsbury's and Errol Anderson motors will be making less profit, which may result to prices of products and services going up. If prices of goods and services were to go up this would cause a lot of competition in the tertiary sector, which is not good for J-Sainsbury's or Errol Anderson motors. As this is an external influence, and businesses have no control over this, businesses can only obey what the government sets. European union As England is in the European union, businesses like J-Sainsbury's have been affected.

When J-Sainsbury's buy wines and beers they would usually have to pay a duty tax. But as England is in a European union trading wines and beers from other European countries will duty free This is good for J-Sainsbury's because this will lead to making more profit, which is good for J-Sainsbury's shareholders and if J-Sainsbury's make a lot of profit people will be attracted to buy more shares of the company. This will also make J-Sainsbury's financially healthy. Also as England is in a European union, business will have to follow laws, which the European union set.

One law I know about is European union members are only allowed to work only a maximum of 40 hours a week. There is also another law about minimum wage. All businesses have to pay employees the minimum wag, which is i?? 4. 20 an hour at the moment. Laws, which are set by the European union, must be followed by businesses like J-Sainsbury's and Errol Anderson motors, as they are in a European union. Summary and comparisons of J-Sainsbury's and Errol Anderson Motors This section will conclude all my findings and understandings of how businesses develop. There are many external influences which affect how a business runs.

These external influences can interact with each other and affect a business. The success of each business depends on many factors. For example, the location of each business, a supermarket for example, must be close to its customers, i. e. outside a bus stop or near a school or community, not in the middle of anywhere. A delivery service does not necessarily have to be near their customers, because they deliver the goods to their customers. Errol Anderson is a successful sole trader because he finishes his tasks on time, the customers are proud of his hard work.

His business is located near the Harrow tube station and is situated on the high street. The influence of stakeholder groups is an important factor. The stakeholders are greatly affected if anything drastic were to happen to the business. In J-Sainsbury's, the shareholders are major stakeholders, if the sales are dropping, the share's value would drop and the shareholders would lose money. The local community will be directly affected if J-sainsbury's were to move or shut down because unemployment would rise and trade will suffer.

Errol Anderson's suppliers are stakeholders, if Errol was to move or shut down, the suppliers will lose a major customer. I think that the most important factors are the location of each business and the influence of stakeholder groups. These factors have the most effect on how J-Sainsbury's and Errol Anderson Motors run. When comparing J-Sainsbury's and Errol Anderson Motors, I find that there are many similarities and differences between them. Some of these relate to the external influences. The similarities are that both J-Sainsbury's and Errol Anderson Motors sell their services to the public.

They both operate under the Private sector. Both businesses intend to make a profit, and they both have suppliers. Without suppliers, the businesses would have no products or services to sell to the public. If Errol Anderson had no suppliers, he would not be able to obtain spare car parts to repair the customers' car. The customer won't be able to get his car repaired and visit another garage. Both Errol Anderson motors and J-Sainsbury's have picked a location close to their customers, they both are very close to a tube station and customers can reach to them without a problem.

Some of the differences are listed in the table below. J-Sainsbury's is a public limited company whose shares are sold through the stock exchange, compared to Errol Anderson motors, who is a sole trader and has unlimited liability. J-Sainsbury has limited liability and as a whole organisation would be more formal dealing with employees, customers and suppliers. The dress code for employees would also be formal, as staffs that work for J-sainsbury's have to wear uniform. Errol Anderson motors would be informal as it is not a large organisation and deals with much less customers then J-Sainsbury's.

Also their dress codes will de informal too because of the duties an employee has to do working for a motor garage. Another difference is that J-Sainsbury has to do a lot of advertising in order to make customers more aware of new products. And also have to do product endorsement for example they did it with Jamie Oliver. Also J-Sainsbury is a part branch compared to Errol Anderson motors where there is only one garage. J-Sainsbury has a large work force to work for them because they business are very big, but in Errol's case he doesn't need a big work force because they business is smaller.

The shareholders are the owners of J-Sainsbury's where Errol owns his business. Errol is responsible for any loss the business makes. I have picked specific similarities and differences that have interested me. The similarities and differences have both occurred because both J-Sainsbury's and Errol Anderson motors are very different businesses, although they operate differently, they sometimes have similar targets and aims in a business. They both intend to make a profit; they both want to attract as many customers as possible, they both need suppliers, they both aim to make the customers happy with their services.