Analyse how any two changes in the legal environment might affect GR.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2020). The mark or mark type is shown in brackets.

1. [K] The legal environment acts as both a constraint and an enabler for GR's activities.
2. [K] Legal environment is the set of rules set by government that regulates business activity
3. [K] Legal constraints on GR include: Minimum wage
4. [K] Legal constraints on GR include: Unfair dismissal
5. [K] Legal constraints on GR include: Health and safety legislation
6. [K] Legal constraints on GR include: Consumer rights legislation
7. [K] Legal constraints on GR include: Employment rights
8. [K] Legal constraints on GR include: Controls on marketing
9. [K] Legal constraints on GR include: Tax rates
10. [K] As an enabler for GR's activities: Some of above also provide protection to GR
11. [K] As an enabler for GR's activities: Protection of property rights
12. [K] As an enabler for GR's activities: Competition law
13. [APP] Minimum wage paid to kitchen employees and waiters
14. [APP] Need to provide health and safety training to new employees
15. [APP] Need to provide food hygiene training
16. [APP] Zero hours contracts used by GR. This may be made illegal.
17. [AN] Can reduce profit by increasing costs e.g. minimum wage increases labour costs in the industry
18. [AN] Can constrain the decision making of managers e.g. ending zero hours employment contracts. This can make it more difficult to remove unproductive employees thus reducing the efficiency of GR
19. [AN] Training will increase costs of GR and reduce profit.
20. [AN] Training can improve the quality of employees and make GR more efficient. Improves service and avoids complaints from customers
21. [AN] Competition law can prevent unfair practices from other firms thus protecting GR's profits.