The social environment urged a change to make public companies more liable. After the accounting scandals of the early 21st century, the US SEC became more attentive on corporate compliance. Egypt and Syria faced disturbances too.
These disrupt business operations. This influences factors like taxes and government spending, which ultimately affect the economy. Change in the political factors can affect business strategy because of the following reasons: A greater level of government spending often stimulates the economy.
It ranks countries based on how politics impacts business decisions there. Changes in regulation Governments could alter their rules and regulations. Government is a major consumer of goods and services. This could lead to riots, looting and general disorder in the environment.
The stability of a political system can affect the appeal of a particular local market. The policies maintained low-interest rates. The government introduced the Sarbanes-Oxley compliance regulations of For example, an aggressive takeover could overthrow a government. Sri Lanka was in a similar state during a civil war.
Government actions influence the economic environment. Political Stability Lack of political stability in a country effects business operations.
How political factors affect Nike Studies show that Nike has earned high profits from the growth orientated policies of US government. This was a reaction to the social environment. This could in turn have an effect on a business.
For example, there are major differences in Democratic and Republican policies in the US. Nike enjoyed changes in the political factors in many ways. Currency exchange stability and internationally competitive tax arrangements were also maintained.
The economic environment affects the business performance. Governments pass legislation, which impacts the relationship between the firm and its customers, suppliers, and other companies.
The index of economic freedom is a good example.
Mitigation of Risk Buying political risk insurance is a way to manage political risk. Mitigation of risk Impact on economy The political situation of a country affects its economic setting.Some common factors are political, economic, social and technological (known as PEST analysis).
Companies also study environmental, legal, ethical and demographical factors. The political factors affecting business are often given a lot of importance.
Several aspects of government policy can affect business. The political. Greggs is a plc. It is the largest bakery chain in the UK with 1, outlets. It was founded in by John Gregg. The current CEO is Roger Whiteside.
It was founded in Newcastle Upon Tyne. Share Price – p The VAT Pasty In the Government announced that VAT would be applicable to all 'hot takeaway food'. How Political Legal And Social Factors Impact On Greggs The Bakers Political, legal and social factors impacting LLC and IAG The following report will consist of some of the social, political and legal factors that could potentially affect Leeds City College and International Airlines Group as a business.
Greggs chief executive Ken McMeikan said: "This is fantastic news for the customer more than anything. "If we had to put up prices by 20% in the current marketplace when consumers are having a very difficult time we expected there would be an impact on sales but we don't know what it would have been.
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Overview 2 Political Factors 2 Economical Factors 3 Social Factors 4 Technological Factors 4 PEST Macro Analysis Summary 5 Bibliography 6 1. PEST Macro- Analysis Overview The virtual banking industry was based primarily on the confidence of the users in the web-based banking technology and the authenticity of the virtual banks.Download