Which of the following is a political factor which may impact upon an organisation
There are many external environment factors affect business negatively and positively. Business managers must address these factors and make decisions that minimize the impact of external environment. These factors include political factors, economic, social, technological, legal and environmental also known as PESTLE Analysis. Political factors and environment of a country impacts any business organization and can also introduce a risk factor can cause the business to
suffer losses or compromise over its profit stream. Political environment can change because of the policies and actions of the prevailing government at every level, federal to local level. It is very important that a business should plan for the variability in the policies and regulations of the government to maintain a stable business environment. DefinitionPolitical factors are government regulations that influence business operation positively and negatively. Managers must keep a bird’s eye view over political factors. These factors may be current and impending legislation, political stability and changes, freedom of speech, protection and discrimination laws are factors affecting business operation and activities How Political Factors Affecting Business EnvironmentPolitical factors can impact a business by making the market environment more or less friendly for that business. Typically, governments have a great deal of power over businesses and many times, there is not much that businesses can do about it. Political factors can impact businesses in various ways. These external environmental factors can add in a risk factor which can lead to a major loss in business. These factors can change the entire results and hence, companies should be able to deal with both local as well as international political outcomes. In addition to this, political factors not only have a direct impact but, it also impacts other factors as well which can have a significant effect on the business and its operating environment. There are certain factors that create inter-linkages in several ways like:
What Political Factors Affect Business EnvironmentWith a change in administration policies, there arise political factors that can change the entire business scenario. These changes can be economic, legal or social and can include the following factors:
Example Political Factors Affecting NikeConducting a macro environment analysis, a good example of how political factors have affected a business can be associated with Nike. Nike is a globally recognized athletic apparel, footwear, sports accessories and equipment. Nike has been very fortunate as the government of the United States have formulated such policies that will foster the growth of businesses. The company is enjoying stable currency and low-interest rate conditions along with very competitive tax arrangements that help the company in advancing growth. US government has taken initiatives with respect to transparency in the global value chain and Nike has greatly benefited from this. However, Nike is facing hard times in its outsourced manufacturers in other regions like Indonesia, Thailand and Vietnam where there is an increase in political unrest. Which of the following is a political factor which may impact upon an organization?Which of the following is a political factor, which may impact upon an organisation? Demographics.
Which of the following is a socio cultural factor which may impact upon an organization?Which of the following is a socio cultural factor, which may impact upon an organisation? Infrastructure.
Which of the following is a technological factor which may impact upon an organisation?Technological factors include production techniques, information and communication resources, production, logistics, marketing, and e-commerce technologies. These affect how an organisation operates, sells its products, interacts with, and gathers intelligence on customers, suppliers, and competitors.
Which of the following is not an external environment Mcq?This is Expert Verified Answer
Change in government policies, customers' preferences, or improvement in technology are some examples. However, an organization's policies are created internally by the owners of the business and so, do not form a part of the external environment.
|