PEST: Political factors Flashcards
PEST: political factors elements
laws
regulations
taxes
trade agreements or conditions
how do businesses influence the gov.
lobbying
collaboration/input
advertising
lobbying
the act of trying to influence decisions made by government officials, such as legislators, regulators, or public officials. It is typically done by individuals, groups, or organizations that want policies or laws to reflect their interests.
lobbying act
must register and follow rules, have to describe who you represent
collaboration/input
Collaboration refers to businesses working together with governments, organizations, or stakeholders to achieve mutual goals.
advertising
corporations influence voters
get to gov. through people ex. with contracts
how gov. influence businesses
service provider
business support
laws, regulations
taxation
service provider approach and impact
approach: canada post, public education
impact: competition, social goals
business support approach and impact
approach: subsidies, trade agreements
impact: opportunity, protection
laws, regulations approach and impact
approach: competition, consumer, pollution, laws, IP rights
impact: competition, consumer protection, innovation, social goals, barriers
Taxation approach and impact
approach: income(business and personal), sales, property restrictive
impact: consumer spending, incentives, barriers
6 entry strategies
indirect export
sales agent
licensing/franchising
joint venture
sales office
foreign subsidiary
indirect export
selling via third party exporters
sales agent
local distributor or agent
licensing/frachising
allow local use of IP
joint venture
partnership with local firms
sales office
maintain production domestically
foreign subsidiary
full control with local operations
indirect export risks
limited control
sales agent risks
limited marketing control
licensing/franchising risk
IP misuse
joint venture risks
partner incompatabilities
sales office risks
trade barriers
foreign subsidiary risks
high costs
forms of ownership
sole proprietorship
partnership
corporation
types of corporation
public and private
types of partnerships
general partnership
limited partnership
general partnership
all partners have joint and several liability
limited partnership
limited partners liability
cannot be active in management
at least one general partner
social enterprise
prioritize value over profit
ex. SOS, garmeen bank
key facets of social enterprises
help overcome market inequalities/failures
social value is primary objective but financial sustainability imperative
social enterprises implications
economic value not required priority
dual stakeholders
globalization
world becoming single interdependent system
globalization driving forces
cost and market benefits
technology makes it easier, faster, cheaper
competitive pressure
international trade barriers technological factors
IP laws, technology standards
international trade barriers internal factors
knowledge/capabilities, production, preference, finances
international trade barriers political factors
quotas, tariffs, subsidies, protectionism, local content laws, business practice laws
international trade barriers social and cultural factors
customer needs, customer values, language, norms
international trade barriers 5 forces factors
distribution, customers, competition, suppliers, substitutes
international trade barriers economic factors
exchange rate, foreign GDP
public corp
expensive, complicated, many regulations, BOD control, can afford resources, taxation taxed separately from shareholders; higher than private, liability limited to investment
private corp
straightforward and inexpensive formation, few simple regulations, control shared with other shareholders, resources are whatever owners bring, taxation private corp. rates, liability limited to investment except personal assets brought into business
