The analysis should focus on all government policies and actions, whether political or legislative, which affect:
- the sector to which the company belongs
- the consumers
- the company.
Laws and regulations that affect the company’s activities must be checked continually, as they could represent serious threats, but may also offer attractive opportunities for the business.
It is essential not to be caught unawares, to anticipate warning signs, to analyse carefully and try to understand in advance how the surrounding scenario will evolve.
Political factors that could exert significant influence on the business environment include:
- environmental regulation and protection
- tax policies
- international trade regulations and restrictions
- consumer protection
- employment laws
- the attitude of government bodies
- the regulation of competition
- political stability
- safety regulations.