Political Factor
- For instance, a political relation policy of de regularisation or privatization has the effect of opening up markets to competitive. Previously comfortable industries feel the chill wind of change, and organizations deep down the industry are forced to innovate and cut be to remain competitive. This is because new entrants will often enter a market with lower cost curves and more innovative products and go owing to a better use of technology and a clearer understanding of consumer needs. To avoid being surprised, companies need to be see their environment for signs of change in government policy which top executive impact on their industry. See strategy Focus: tribute Measures, which highlights the impact of raised security levels on low-cost glowlines.
-An air or sea disaster which costs human lives may prompt tighter government regulations in the areas of health and safety, particularly where an investigating shows that the disaster could have been avoided. Companies operating within these industries should not be waiting to react to the emergecome but have worked out the ramifications of government regulation. The reduction in carbon dioxide emissions and new supply consumption standards for cars came about as a result of intergovernmental regulations.
This, in turn, was a result of widespread concern by consumers and environmental groups about climate change due to increased levels of nursery gases in the atmosphere. This highlights the links between social trends and political change.
-Government regulation need not be something for companies to fear. Porter and Van Der Linde (1995) visor out that environmental regulations, such as reducing pollution, may act to spur competitive companies on to innovate and edit costs to counter the increase costs of regulation. While the US car-makers fought new fuel consumption standards in the vain take to that they would go away, the Japanese and German carmakers...If you want to get a full essay, order it on our website: Ordercustompaper.com
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