When considering strategic business decisions, businesses analyze the six general environmental forces: political, economic, sociocultural, technology, environment and legal factors. A3d. The Business Organisation, Its Stakeholders A3. Political factors affecting the fashion retail industry in the UK. Running head: INTERNATIONAL LAW Political and Legal Factors Affecting the Economic trends. Examples. Changes in the macro-environment factors can have a direct impact on not only the Microsoft Corporation but also can impact other players in the Business Software & Services. Economic factors affecting business With numerous political parties, national level and state level, it is very difficult to get a consensus among all parties for starting any business. It is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. This factor also affects business organization. How Legal Factors affect Business Environment. In the last five years that number has jumped up to 13.8 per year. affects the working of an international business firm. Economic factors affecting business include all important trends in the economy that can help or hinder the company in achieving its objectives. degree of politicization of trade and industry, the efficiency of the current government, government policies, current legal framework, the public attitude towards the economy, etc. ACCA BT F1 Syllabus A. How Do Legal Factors Affect Business? The legal environment involves rules, regulations, laws, and more. Environmental Regulations. There are many political factors affecting business in any country. Although the country has a huge potential for economic growth offering access to a large market The purpose of regulation is to protect both consumers and businesses. The political atmosphere should be good and very stable for a firm to operate successfully. Legal factors affecting business include all regulatory and law determinants that can negatively or positively affect results of market actions and decisions of management of company functioning in particular country. For example, in 2016, California citizens voted for a law to ban the use of single-use plastic bags, affecting the majority of retailers in that state. The “S” in all these analyses indicates social or socio-cultural factors. Below, is a list of political factors affecting business: Bureaucracy; Corruption level; Freedom of the press; Tariffs; Trade control; Education Law; Anti-trust law; Employment law; Discrimination law; Data protection law; Environmental Law; Health and safety law; Competition regulation; Regulation and deregulation; Tax policy (tax rates and incentives) The Business Organisation, Its Stakeholders A3. The marketing‚ sales and technical skills are required to increase the productivity of business.Business in general is enhanced when people from different cultures find new approaches to old problems‚ creating solutions by combining cultural … Political factors affecting the Netherlands. The businesses I will be concentrating on is Toys ‘R’ Us and National Health Service. Businesses choose an environmental analysis depending on the nature of operations. The aim is always to take better decisions for the firm’s progress. The only solution is to conduct environmental analysis . Five Star Movement, the Democratic Party, and the Lega. (2012) found that political & legal factors are one of those factors which affect HR practices. Political, Legal, and Social Factors Impacting Business. The political opinions and philosophies of the party at the state or central levels affect the political environment. Government policies, capital market, import-export policy, nationalization policy, privatization, globalizationand simplification, and rules, relating to business activities With a change in administration policies, there arise political factors that can change the entire business scenario. The Business Organisation, Its Stakeholders A3. Trading agreements – (EU,NAFTA,ASEAN) Competition law Government stability Taxation policies Business ethics Social welfare policies Employment law Some common factors are political, economic, social and technological (known as PEST analysis). POLITICAL AND LEGAL ENVIRONMENT Marketing decisions are highly affected by changes in the political/ legal environment. Legal Factors in Your PESTEL Analysis (Part 7 of 7) A government’s rules and regulations—its laws—will always have a macroeconomic impact on the success of any business. The major political issues that affecting Adidas are changing trade policies and political unrest in many countries. The Netherlands is a constitutional monarchy. tax relief for some types of productsor businesses promoting development, The legal factors consist of organizational law, employment law, consumers law, advertisement law, product and service standard law,banking law, Anti-trust law and intellectual properties law. The Political and Regulatory Environment. Adidas has to tackle such issues in order to sustain its global presence and financial performance. Ford’s business must address the political aspect as an external influence. With a change in administration policies, there arise political factors that can change the entire business scenario. Task 2 Examination Of 3 Political Social And Legal Factors. & … Political and Legal Factors. In P5 and M2 tasks I have presented the different economic impacts‚ and now I will present the … Political factors such as changes in tax rates, policies and actions of government, political stability of country, foreign trade regulations etc. Indirect environmental factors can affect any business by creating changes in societal expectations and government laws and regulations in efforts to protect the environment. 02 Explanation 2:09 A3b. The fashion retail industry in the UK has a global reputation. These factors can have both a negative and positive effect on the business. Understanding the variety of factors that affect a business can direct how your organization seeks to achieve its goals and how they articulate themselves. Political Factors would be affiliations with politics and/or political candidates, and dependency on … Regardless of the business aspect of the political and legal factors of the human resource department, the customer is the most important factor overall. It could be a direct effect, such as a direct tax on restaurants, or it can be more indirect . promote environmental sustainability by "decoupling" growth from "constrained resources." Legal factors can decide whether or not there is a business behind selling a certain product (perhaps drugs, or sharp objects), and can also affect the mechanisms through which a company stocks their inventory or interacts with the customer. CASIRJ Volume 5 Issue 5 [Year - 2014] ISSN 2319 – 9202 FACTORS AFFECTING THE CHOICE OF ENTRY MODE BY MNCs First/Main Author: Priyanka Bedi Assistant Professor, University of Delhi Email Id: priyanka2827@gmail.com Corresponding Author: Ekta Kharbanda Assistant Professor, University of Delhi Email Id: ekta.kharbanda1989@gmail.com Abstract … The legal environment has a significant impact on the success of every business venture. This is a perfect example of the types of influences that you must consider when assessing the political factors in a PESTEL analysis. As political officials leave office and new ones replace them, the policies they implement often affect businesses in relevant industries. While Global businesses operate in overseas markets there is often a risk, the risk is referred to as political environment risk, and these factors can facilitate or hinder business operation. ACCA BT F1 Syllabus A. Companies must address the risk of political factors by making decisions that will reduce the external impact on the environment of business. All businesses in the world have to obey to the political, social and legal factors that are within the world. 01 Explanation 1:10 A3a. economic factors relate to the values, attitudes and concerns of your target customers and their economic abilities to afford your products. In fact, the fashion industry contributes approximately £32 billion to the country’s economy. When considering strategic business decisions, businesses analyze the six general environmental forces: political, economic, sociocultural, technology, environment and legal factors. Legal System: The things what business organizations can do and what they cannot do are stated in legal system. How does political and legal factors affect a business? Indirect environmental factors can affect any business by creating changes in societal expectations and government laws and regulations in efforts to protect the environment. The government-enforced policies … Social trends. Factors That Impact Any Business. Business environment includes of mainly external factors that affect the business such as political, economic, social, technological, legal and environmental and sometimes refer as PESTEL factors. Political Factors 2. Italy is a unitary parliamentary republic with a written constitution. Getting Global: Political and Legal Environment. When it comes to UK, being its local market, the political laws have been very easy for Dyson or any company to imply to and the laws usually do not affect Dyson’s business in UK. The political environment in a country affects business organizations and could introduce a risk factor that could cause them to suffer a loss. This influences factors like taxes and government spending, which ultimately affect the economy. Legal factors are external factors which refer to how the law affects the way businesses operate and customers behave. Examples of the political institutional factors are discussed briefly below: Protecting Employees. Political and legal factors. BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS . The political factor is a Since the political and legal issues highly influence the organizational activities the management should have a brief but clear knowledge on these factors and how they affect the organization. iii. These factors can have both a negative and positive effect on the business. ACCA BT F1 Syllabus A. Political-Legal Factors: Political-legal factors include political system, role of government in business, various government policies related to business operations, laws formulated by governments, both central and state levels. Legal and Regulatory Factors Affecting Business. For example, there are major differences in Democratic and Republican policies in the US. TASK 3C (P3.3) In this criteria, I will explain how business environment such as political, social, technical, legal and environmental and cultural environment shape the behavior of Target Corporation. 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