Pest on Unilever Essay

semipolitical factors bias organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument Legislation such(prenominal) as the minimum wage or anti discrimination laws. Voluntary codes and practices Market regulations Trade agreements, tariffs or restrictions Tax levies and tax breaks Type of government government activity eg communist, democratic, dictatorship Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices. ECONOMICAL The warrant element of a PEST analysis involves a study of economic factors. All businesses are bear on by national and global economic factors. National and global i nterest rate and fiscal indemnity will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and doctrineors be corroborate within society.An economy undergoing recession will have high unemployment, low spend power and low stakeholder confidence. Conversely a booming or growing economy will have low unemployment, high spending power and high stakeholder confidence. A successful organization will react to economic conditions and stakeholder behavior. Furthermore organisations will need to review the impact economic conditions are having on their competitors and answer accordingly. In this global business world organisations are pretended by economies throughout the world and non just the countries in which they are based or operate from.For example a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08. Cheaper labour in evolutio n countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of teatime bought in an English cafe. A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.