The most common influence by the government

The most common influence by the government would be the use of taxation and legislation. These activities disturb the financial accounts of the business, as they would need to give a certain amount back into the community where the money would be spent on public transport or on the NHS. There are also laws and acts that influences BMW activity as there are legal requirements a business has to abide by as that being consumer protection laws such as false advertisement as this would mean more money to be spent to abide by the set law rules. Also trained professionals who have good understanding of all BMW models and also on after support services.

So any employee in the showroom will be fully trained so that they can deal with all customers. So this would influence business activity, as they would need to spend time on training their staff so that they can be equipped to deal with customers. All political influences like these makes BMW spend more money on abiding by these rules including the productivity rate on a whole. So this would influence the business as the they are legally bound and if they were not carry out these it may lead to the loss of license. Other taxation they would incur would be the local council tax so this would also influence the business activity.


The UK economic environment is influenced by domestic economic policies and is dependant on world economic trends. These trends may be the decline of the manufacturing sector as more companies are coming part of the tertiary sector this would influence the business activity for the company. As the BMW relies on the manufacturing of its products and if that is in decline it may result in longer waiting times for a specialised BMW models.

Other factors as the rate of growth, inflation, car registration patterns and income distribution will determine the nature of car vehicles and services required by the public. As mentioned before the British economy shows to be going downhill but many sectors show have had a boost to public expenditure so trends may bring a positive knock on effect but it could also been seen to have brought a some misfortune for some industry and companies.

As there is less people in the manufacturing sector this has lead into the decline of metal works for vehicle manufacturing a trend that causes great influences in the BMW activity. If rates of inflation were to rise this would lead to a decline income distribution will be low, this would cause a decline in vehicle expenditure. All these factors more commonly known as trends may have brutal knock effects because of decline some industries or even industry. But in some cases it may be high expenditure but it really depends on how hard an industry is hit or how well some companies are doing. 


The behaviour of society would influence a business as demographic changes such as population growth, movements and age district ions may differ the business activity. As the main objective of the BMW is to sell BMW vehicles and if there is a radical change in cultural values, social trends such as family size and social behaviour will all influence a business activity. But theses social factors will not bring much problems for BMW as they are the only BMW showroom in Leicester so people have no choice than having to go the shop to buy one there models or car parts. 


Technology plays a good and part in business activity. As technology has taken off to great lengths in the last ten years it has helped BMW bring their success into new heights. It has helped develop new ways and techniques of car manufacturing, brought great competition in the sector. The more use of technology has help bring the manufacturing into decline. There are numerous reasons towards this as computers have replaced labour and now companies have look to abroad to manufacture products.

Technology has had a knock on effect on the sector as once what an employee would have to do is now replaced by a machine. The decline of the manufacturing sector has brought the productivity of vehicles slow as car buyers may need to wait longer for certain models. But it has also helped BMW build up brand image and many other factor of business activity on a daily basis. Technology has ease communications, facilities, service and ultimately improved customer services.

So in many ways it influence the business but it may bring good or bad effects but I personally think I has helped BMW come to new lengths on the whole car manufacture and brings the designing of cars to new lengths and heights. Technology has help decrease the use of expensive materials so that they can be produced for cheaper, less workers needed so lees money is being spent on labour. So these are the main factors of how technology has affected BMW directly and the sectors that it works with in the whole CAR manufacturing service. 


The influences here are much the same to the BMW as Co-op are also influenced by planning Permission, consumer protection Acts, council and taxation. Other legal conditions that influence the business activity as by Law employees are allowed a 15 minute break every 4 hours as this would effect the productivity rate if workers are constantly going for a break constantly in different departments depending on how many people are working. This would affect the business activity, as they would not like workers having to go on a break on certain times where they might be very busy and may need all the workers they need so this might bring negative effects for the business.

The staff have be trained before they are allowed to work in a certain sectors as a worker who is working in a fresh food department he must have a hygiene certificate that would unable to work in that sector. So laws of parliament and acts would stop traders from the daily business so this would influences the business activity. If Co-op were to extend their shop anymore they would need receive planning permission then they would need to show a mapping of the new designed area and then it will be decided if it will go ahead or not.

Consumer protection plays a good part in Co-ops services, as they would need to abide my certain rules of selling products. These would influence the business, as they would have certain requirement they would need to abide by. Some example could be that they would need to have trained professional to deal with customers and any queries they may have to inquire.


As the economical environment is influenced by economic patterns and world trends, this will determine the nature of products or service required by customers. As the latest problems occurred with the foot & mouth this had brought beef consumption at his low because of the mass scare of contraction. This had played a part in influences on expenditure in supermarkets and has had a knock on effect. This would influence business activity as this a product that Co-op sell and has decreased the sale for that certain product.

The decline of mining, fishing and forestry has also influenced the business activity as all British raw materials are sold in UK supermarkets so this would also disturb business operation as before these declines it was being brought but now after the decline it has changed the business activity. As the September 11th has influenced the whole of the British economy it has influenced the tertiary sector to its advantage as public spending has risen because of what happens. The economical factors may play a positive and negative effect on business activity depending on how directly the business is involved in different activities.


The behaviour of society effects the business operation in different ways depending on the social changes at the time. The changes of population growth will play a part in how much the store will earn because more people in the area would mean more profit for Co-op. The movement and district ion in areas would also be play a part in the activity. Depending on what age groups are situated in the located area and the movement of people, as people would past away and new people would move into the area. As Co-op are aiming to serve families and if the area were populated with mostly young couple it would not bring much profit depending on if they have children. As parents with no kids would not need to visit the shop on a regularly basis than with kids. So the age district ion in the area may affect the business activity depending on their status.

The changes of different culture's in a area may affect the business activity because of the different type of food they eat and as many cultures have their restrictions on what not to and what to eat. Family size as mentioned before would affect the business but really depends if they have a large family, as these customers would need to visit the shop more regularly. Social behaviour like crime rate might decrease the amount of people to move into the area, as they might fear for their safety.

This would influence the business intensely as this would mean more tight security around the premises so that customers feel safer shopping there. This would effect the activist as they would need bring methods of dealing with these social whether that being CCTV'S or security guard to protect the shop from intruders. Other social changes as more younger people moving into the area might affect the business as they might need to refurbish the shop to attract the right customers who have moved into the area so this would also influence the business activity. 


Technology in supermarkets has helped the service to be much faster and swifter either that being for faster service when customers buying good or when they are checking stock it can all be done on the computer. As Co-op is not very big the technology has been to its advantage as they have more time to serve customers as what jobs were once doing it can now be done by computer or scanners at the till. It has also helped the productivity level at a high rate as now much of the financial figure are all stored on computers, earnings, profits can all be stored into computers again helping the productivity level. So the technological equipment is very cost effective for the business activity as it not increases performance it speeds up productivity. 

This part covers the comparisons between both business and the different point of views of the customers, shareholders and suppliers. BMW is involved in selling and the manufacturing of their own vehicles, parts and motorcycles. Whereas the Co-op is still involved in selling products/goods but also sell food/drink products such as bread, butter, liquor, milk and tinned food. The ownership is different so they would have different ways to run the business and the activity would vary. BMW relies on all profits made from selling their vehicles, servicing, parts and finance of the purchase whereas Co-op counts on all profits made by the whole group.

The group includes banking, funeral services, farming and other services so the comparison here is that Co-op would not only rely on profits made my each service but also turnover profits overall by the group that is shared between members. The most effective comparison here is that BMW is profit motivated unlike Co-op which are a business who sell reasonable priced products for communities in low-income areas. 

Customer's points of view will be counted very important for the business, so their views would count vastly because they are the people who would buy goods/products from both businesses. Both businesses would try their best to offer the best possible goods and services to keep them happy.

This would disclose conflict between the business and the customers as conflict could damage company reputation and amount of goods sold hence affecting the turnover profit. BMW customers would want their vehicles to be of high quality and would want great service including insurance, free services like body repairs and free MOT. While Co-op consumers would want their food products to be of good hygiene and the prices to be affordable.

The customer's views would vary because of the type of products and services they both offer. Customers of the Co-op would care more about the daily activity and how the Co-op keeps to reasonable prices, as the main objective is to serve the local communities. On the other hand the views differ even more as BMW customers would care more about the long-time commitment from the business as vehicles is not something u eat so their would be more depth of a view on after-sales services. 

The shareholders of the BMW would have great interests on how much vehicles are sold throughout the UK. They would also care on how well the business is doing in each area and what is going to be done to make it profitable which leads to increased expenditure of customers.

The shareholders might have a big stake in their local BMW showroom, so they might have many ideas and views they would want to put forward these contrasts from the Co-op, as they have no shareholders. The reason they differ is because of the ownership. A PLC company allows the shareholders to have a less great say than with Co-op, as the business is co-operative and run by its members that have no shareholders. The members of the Co-op would have equal say to anyone else involved inside the business. 

The suppliers for both companies would share the same interests in the sense they would want regular goods ordered from both businesses. The BMW suppliers would bring BMW products from their own manufacturing firms. This is different from the Co-op suppliers, as the business would buy a variety of products from different companies. So suppliers would still want both businesses to order goods regularly but differ according to the company. But Co-op do tend to sell their own branded products so there is not much liability so the different brand suppliers and contrasts with BMW showroom.