Political and Legal Forces Essay

Political and legal forces argon two of the leash most important aspects for a line of business, with social forces existence the third. Politics is a changing scene, and the rules and laws will change not regularly but very much enough. Different elected parties pay different feelings about certain business practices and use or alter the laws to change these. The same comes into play with merchandise in other countries. Organizations, especially the European Union, have a skunk of rules for their member states with regards to production, distribution, content, health benefits, and many more. What argon political forces? Political forces are governments and unilateral bodies that decree certain rules, regulations, laws or restrictions with regards the way a arena is run. This siphons down into everyday life, especially business. Businesses cannot avoid these unless they move countries, and then in that locations the issue of the attention this draws. More often than not they barely have to adapt. An example is revenue enhancement. If taxation rises for companies then so does the price of the goods.If taxation rises in general then wages have to be increase and so making production values higher and prices for goods increase further. What are legal forces? Legal forces are the types of law and legislation that a political body introduces. A government or state-body like the E. U whitethorn decide, for example, that advertising chocolate around childrens television is inappropriate, and thus banish them from advertising on childrens channels and during set time periods. This is a legal constraint. How do we adapt? You have to evaluate the situation.If youre being taxed more then the simple solution is to raise prices. However, this may boggle the consumer, so you need to weigh up whether its safer to take the decrease in profitability or whether you should only marginally increase the prices, thus reducing your loss and minimizing upset to the cons umer. Other manners of political check or legal restriction can occur. Realistically you just have to make them part of your business model. Defying the law can result in punishment, such as fines and even closure