Marketing environment Macro environment factors: Political & Legal

Marketing environmentMacro environment factors:

Political & LegalT.PESTELanalysis (Political, Economic, Social, Technological, Environmental and Legal analysis) describes a framework of macro-environmental factors used in theenvironmental scanningcomponent ofstrategic management. Political Factors are basically to what degree thegovernmentintervenes in the economy.

Tax policy-is the choice by a government as to whattaxesto levy, in what amounts, and on whom. The macroeconomic aspects concern the overall quantity of taxes to collect, which can inversely affect the level ofeconomic activity; this is one component offiscal policy. The microeconomic aspects concern issues of fairness (who to tax) andallocative efficiency

Labor Law mediates the relationship between workers (employees), employers, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Individual labour law concerns employees' rights at work and through thecontractfor work.Employment standardsare social norms (in some cases also technicalstandards) for the minimum socially acceptable conditions under which employees or contractors are allowed to work.

Environmental Lawis a collective term describing the network oftreaties,statutes,regulations, andcommonandcustomarylaws addressing the effects of human activity on thenatural environment.

A related but distinct set of regulatory regimes, now strongly influenced by environmental legal principles, focus on the management of specificnatural resources, such as forests, minerals, or fisheries.

Trade restrictionsis an artificial restriction on the trade of goods and/or services between two countries. It is the byproduct ofprotectionism. However, the term is controversial because what one part may see as a trade restriction another may see as a way to protect consumers from inferior, harmful or dangerous products.

Tariffs are taxes onimportorexport of goods. There are two types of tariffs: protective and revenue tariffs. Protective tariffs are put in place specifically to make foreign goods more expensive to protect domestic industries from competition. Revenue tariffs are put in place to raise money for the government. It all depends on the intention of the government that implements the tariff.

Political stability is the durability and integrity of a current government regime.Political instability plays a role in why some countries remain poor. This could be ethnic tension, tribalism, or all out war. Needless to say, countries with long-term conflicts such as the ones in Somalia or Afghanistan, have little chance of developing. Other nations such as Sri Lanka, have simmering ethnic divides that are a constant distraction, de-stabilizing the region and discouraging investment.

Legalfactors includediscrimination law,consumer law,antitrust law,employment law, andhealth and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

Discrimination law-refers to the unequal treatment of people. Some countries mandate that in employment, in consumer transactions and in political participation people must be dealt with on an unequal basis of sex, age, race, ethnicity, nationality, disability, sexual orientation, gender identity and sometimes religious and political opinions.

Consumer protectionis a group oflawsand organizations designed to ensure therightsofconsumersas well asfair trade, competition and accurate information in the market place. Consumer protection laws are a form of governmentregulation, which aim to protect the rights ofconsumers.

Antitrust laws - also referred to as "competition laws" - are statutes developed by the U.S. Government to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy.Competition lawis alawthat promotes or seeks to maintainmarket competitionby regulatinganti-competitiveconduct by companies. Competition law is implemented through public and private enforcement.

Labour laworemployment lawmediates the relationship between workers (employees), employers, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Individual labour law concerns employees' rights at work and through thecontractfor work.

Health and safety lawis a body of law that protects the health, safety and welfare of the general public and certain defined sectors of the population such as employees. Most jurisdictions have a framework of health and safety law which will usually be enforced by the state using an inspectorate, regulatory control and the criminal law.The regulatory framework for health and safety will usually operate alongside acivil lawsystem which would allow individuals to bring alawsuitagainst a person, company or organization that may have been liable for personal injury or even death.

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