Heyz Every1,
Wondering if any1 could help me with this question, that how customers,shareholders,local community, pressure groups and employees will be effected by the external factor which is consumer protection?
Political ( Consumer Protection)-
Tesco must make sure that their goods and services meet general safety requirements. They must make sure that everyone on their premises is safe. In addition, they must ensure that what they offer the customer is accurately described and that the claims they make about their products are true. If TESCO fail to follow with the requirement of the law, goods can be seized, destroyed and they could be fined which means that either the directors or senior managers would be liable and this will destroy the reputation and the publicity for both the company and people working for the organisation. The impact that this will have on TESCO is that it will increase their costs as everything has to be precise or they will be sued by the customers. If this increases costs then this will lead to TESCO earning fewer profits and other expenses such as wages will have to be paid.
The Sale of Goods Act 1994 which provides protection for consumer’s goods and services. The product should fit the purpose and as described by the seller on the package. The goods must be of a standard that a reasonable person would regard as satisfactory. This means they shouldn’t be faulty or have defects (unless these were pointed out to the customer beforehand); they should be safe to use and last a reasonable length of time. Customers will shop in TESCO if the company follows the law as the consumer protection act suggests that products should be of satisfactory quality so customers will be satisfied if TESCO follows the law. Customers will be happy with the products which are of high quality and products that are attractive to them the most. The advertisement of TESCO would have to include the purpose of the product and what is suitable for as not complying with complying with these laws will compromise the business into being sued and may lead to the directors being liable leading to bad reputation and publicity.
Thankyou in advance
