T.

Marketingenvironment
Macroenvironmentfactors:
Political&Legal

PESTELanalysis

(Political, Economic, Social, Technological,

Environmental and Legal analysis) describes a

framework of macro-environmental factors used

in theenvironmental scanningcomponent of
strategic management.
Political Factors are basically to what degree
thegovernmentintervenes in the economy.

Taxpolicy

-is the choice by a government as to what

taxesto 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

LaborLaw

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.

EnvironmentalLaw

is a collective term describing the network of

treaties,statutes,regulations, andcommon
andcustomarylaws 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.

Traderestrictions

is 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.

Politicalstabilityisthedurabilityand
integrityofacurrentgovernment
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.

Legal

factors 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.

Discriminationlaw

-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.

Consumerprotection

is 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.

Labourlaworemploymentlaw

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.

Healthandsafetylaw

is 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.

Thank you !