The ideology of the ruling political party determines the legal environment in which the company must develop. This environment can be analyzed from two axes: political stability and expressions of power that result in laws, resolutions, decrees, ordinances, etc. For this reason, given the importance of the legislation in force in this environment, most authors call it the political-legal environment. A very clear example of the importance of studying the political environment of the company in order to design a strategic© plan± is that of companies located in free zones. These factors include both the political aspects of the country in which the company operates and the factors that constitute the legal framework of that country. If a company decides to launch an internationalization strategy (which means that it will compete in countries other than the country of origin), it is very important that it receives information about its political structure (especially if the country maintains some political stability) and legal (for example, competition regulation). Some examples of political-legal factors important for the enterprise may be: competition law (laws on monopolies), commercial law (which regulates the operation of commercial enterprises in their various forms: anonymous, limited, cooperative, labor law), labor law (labor market regulation and protection of workers), consumer protection legislation, legislation on the quality and safety of products and services, legislation on environmental protection, energy consumption, tax policy, subsidy and state aid policy, social and equality policy and political stability (government situation, opposition party policy, etc.). The political environment, along with economics, sociodemographic and technology (PEST), forms the macro or general environment of a company. Among these macrovariates, some authors also©include the environment.
This policy has radically changed the business environment for healthcare companies from low demand paying high prices to high demand at low prices. The variables of the political environment that influence the existence and profitability of a company act from the different levels of governmental organization (international, state, federal or autonomous and local). These include the following: The political environment of a company refers to the institutional context that exists in the society in which a particular company operates. This context influences the operation and viability of businesses. It is an element outside the company; Therefore, it cannot control it. Here are some examples of elements of the political environment and how they affect the company: Technique to perform the analysis of the general framework and identify opportunities and threats to the company by grouping the factors of the environment into: political-legal factors, economic factors, sociocultural factors and technological factors. Finally, technological factors are linked to the impact that new information and communication technologies can have on companies. In this case, a distinction should be made between the technological factors of the general environment (which affect any type of business) and the technological factors of the competitive environment (this is a specific technology applied to a particular sector or industry). Technological factors in the general environment include public spending on R+D+i (research, development and innovation), patent and trademark development, government and industry attention to technological efforts, new discoveries and developments in processes, products, services and techniques, speed of technology transfer and obsolescence rates. The main actors in this environment are government agencies, political parties and interest groups. Depending on their performance, it can be said that they favor or restrict the business sector.
However, depending on the size± of the company or its industry, this can influence its political environment. There is therefore a correlation between the political environment and the company. The analysis of the political environment is fundamental in the preparation of the strategic©plan of a business project. Institutional organization directly affects the ability of companies to influence their political environment. In highly decentralized societies, companies have better access to actors in the political environment. Often, social upheavals triggered by pro-rights protests are accompanied± by violent riots and looting that destabilize the economy and cripple consumption. Egypt and Syria are two examples of such situations. The difference is so large that a business could survive in a free zone subject to a 15% tax, but would not be profitable or profitable in a scenario where it would have to bear a tax burden of 35%. This applies in particular to companies operating internationally, as the emergence of world powers or international agreements between countries can limit their competitiveness in the market. If you have written this article and are not yet registered with RePEc, we recommend that you do so here. This allows you to link your profile to this item. It also allows you to accept potential quotes on this point that we are not sure about.
El ambiente polÃtico de una determinada sociedad puede variar y las empresas deben estar preparadas para hacer frente a los posibles efectos que esto pueda provocar en el desarrollo de su actividad. Estas determinan la manera en la que la empresa se relaciona con sus elementos internos, como son el humano (legislación laboral) y su propio capital (normas fiscales y mercantiles). If you know of any missing elements that cite this, you can help us create these links by adding the relevant references in the same way as above for each SEO element. If you are a registered author of this article, you can also check the “Quote” tab in your RePEc Author Service profile, as some quotes may be awaiting confirmation. This group includes a wide variety and heterogeneity of factors. Cultural factors include, but are not limited to, the level of education, the relationship between the education system and enterprise and society, and continuing education and retraining. The social factors to be analysed may be demography (ageing population, birth rate, population distribution, impact of immigration, etc.), income distribution, social mobility, lifestyle changes, work-life balance, attitudes towards work and leisure or consumption. Political stability is fundamental to a country`s economy. In countries where political instability is or in basic situations, investment slows© down, both abroad and at home. On the other hand, the social unrest associated with this type of situation paralyzes or slows down a country`s consumption.
This element includes the specific legal provisions that govern the operation of companies. The creation of supranational bodies may refer to a country`s legislation in©terms of trade, social policy, etc., which will ultimately affect the operation of the enterprise. The case of the United States is very striking in this regard. The United States is governed by Republicans and Democrats, with large differences in the political orientation of the two parties. The political orientation of the ruling party has a strong impact on the functioning of companies in©terms of taxes, public spending, etc. With the adoption of Bill 100, many companies dedicated to the provision of health services (optics, clinical laboratories, dental clinics, etc.) were created. Although they received a low price for their service, the demand was constant and widespread to be accessible to the entire population. Here are some examples of rules that specifically affect the business: Objective: To know the line inherent in Mexican government spending and how it is funded.