Political Factors Effecting Retail Industry In India<br />By,<br /> ...
Business environment as such are classified into the following three major categories, they are:<br /><ul><li>Internal env...
Operational environment
General/external environment</li></ul>Both internal and operational environment are the creation of the enterprise itself....
The External environment of the Business consists of<br /> 5 factors:<br />1) Economic <br />2) Social <br />3) Legal <br ...
These refer to government policy such as the degree of intervention in the economy. What goods and services does a governm...
5<br />
Political factors can be<br /><ul><li> Stability of the government
 Fair-trade laws
 Antitrust laws
 Tax laws
of 11

Political factors

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Political factors

  • 1. Political Factors Effecting Retail Industry In India<br />By,<br /> Karthik<br /> B.R.Mahendra<br /> Dheeraj<br /> S.V.Jai<br />1<br />
  • 2. Business environment as such are classified into the following three major categories, they are:<br /><ul><li>Internal environment
  • 3. Operational environment
  • 4. General/external environment</li></ul>Both internal and operational environment are the creation of the enterprise itself. The factors of external or general environment are <br />broad in scope and least controlled and influenced by the management of the enterprises.<br />2<br />
  • 5. The External environment of the Business consists of<br /> 5 factors:<br />1) Economic <br />2) Social <br />3) Legal <br />4)Technological and <br />5) Political factors.<br />Monitoring, understanding and adapting to the political environment is absolutely essential for any business, because it significantly affects every business<br />3<br />
  • 6. These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support?<br />Political Environment:<br />How changes in government policy mightaffect the business e.g. a decision to subsidies buildingnew houses in an area could be good for a local brick works.<br />4<br />
  • 7. 5<br />
  • 8. Political factors can be<br /><ul><li> Stability of the government
  • 9. Fair-trade laws
  • 10. Antitrust laws
  • 11. Tax laws
  • 12. Minimum wage legislation and
  • 13. Economic policy of the government
  • 14. pollution laws as cited in Develop
  • 15. Defense and military policy
  • 16. Diplomatic events in surrounding countries</li></ul>These factors can be restrictive or beneficial. Restrictive factors are those factors that limit profits<br />6<br />
  • 17. <ul><li> Automatic approval is not allowed for foreign investment in retail.
  • 18. Regulations restricting real estate purchases, and cumbersome local laws.
  • 19. Taxation, which favors small retail businesses.
  • 20. Absence of developed supply chain and integrated IT management.
  • 21. Lack of trained work force.
  • 22. Low skill level for retailing management.
  • 23. Intrinsic complexity of retailing – rapid price changes, constant threat of product
  • 24. Obsolescence and low margins.</li></ul>The cost and time of transportation along with security issues hamper cross-border trade. In order to export from India, an exporter needs to obtain 258 signatures and make 118 copies of the same information, key punching of which takes 22 hours<br />7<br />
  • 25. 8<br />
  • 26. 9<br />
  • 27. Conclusion:<br /><ul><li>The political environment has an important impact on the business
  • 28. There is a large field with many factors which the companies have to consider if they want to expand overseas
  • 29. Political environment is not stable and can change quickly
  • 30. The political environment creates advantages and disadvantages</li></ul>10<br />
  • 31. 11<br />

Related Documents