Political and Legal change Flashcards
What is the political environment
The political environment is the range of government policies and their impact on business
What political factors do businesses have to be aware of
Competition regulations/policies
Industry regulation
Government spending +tax policies
Business policies and incentives
What are competition regulations
To promote competition, make markets work better and contribute towards improved efficiency in individual markets and enhanced competitiveness
What do competition policies aim to ensure
Technological innovation which promotes dynamic efficiency in different markets
Effective price competition between suppliers
Safeguard and promote the interests of consumers through increased choice and lower price levels
What are industry regulations
the rule-enforcers and they are
appointed by the government to oversee how a market works and the outcomes that result for producers and consumers
What do competition regulators ACTUALLY do
Monitor and regulate prices
Standards of customer service
Open up markets
The “Surrogate Competitor”
Impact of political factors on businesses
more rules and regulations which can increase costs or they may have to charge customers more
treated more fairly e.g. farmers should experience fairer prices as price fixing will be monitored / prevented
better PR or bad publicity limited
What is the legal environment
The legal environment is the range of legislation and regulation that has been passed and it’s impact on businesses
Main roles of business legislation
Regulate the rights and duties of people carrying out business
Protect customers from harmful business activity
ensure employees are treated fairly and not discriminated against
Provide protection to investors and creditors
Deter and prevent unfair competition
