About this page. If they are found to be doing this they may be fined for anti-competitive behaviour, from occurring. They aim to ensure that competition policy is enforced throughout UK markets. These political, economic, social, technological, environmental and competitive factors are represented by the acronym PESTEC. They aim to ensure that competition policy is enforced throughout UK markets. Most businesses will keep a watchful eye on political factors which might have an impact on the company’s bottom line. Read about our approach to external linking. are the main competition policy regulators in the UK. Download as PDF. Political factor Impact; Governments can raise or lower corporation tax. These results partially conflict with those expected from H2, due to the Political factors involve the decisions and laws that governments make. Reza Jamali, in Online Arab Spring, 2015. This is the behaviour of the government in influencing the economic performance of the country. On the other hand UK-based car manufacturers are worried about losing out on free access to wealthy customers in France and Germany, The Competition and Markets Authority (CMA) are the main competition policy regulators in the UK. ... businesses colluding with other organisations to fix prices. Businesses may be fined if they are found to be partaking in a cartel. The stability of political environment is very conducive to the economy and business in general. Set alert. They can also affect businesses by increasing value-added tax on products or business rates Stability : This is one of the most important factors. For example, Scottish fishermen hope that leaving the EU will help boost their industry. Businesses may be forced to sell off branches or divisions to ensure that enough competition remains in the market, ... businesses from making agreements with other firms when, for projects. political factors, such as their electoral popularity and the proximity of the next elections. Political factors involve the decisions and laws that governments make. A monopoly occurs if there is only one supplier of a particular product or service, – this area deals with tax rates and the level of government spending, – this area deals with setting interest rates and controlling the supply of money in the economy, Religious, moral and philosophical studies. Political factors are activities related to governmental policies that can have an effect on something. Governments can raise or lower corporation tax. Analysis of political factors. Various Political Environment related Factors & Elements. This can lead to increased innovation as companies aim to outdo competitors. They may also be forced to change their prices, that would lead to a considerable decrease in competition in the market. These include: The main aim of competition policy is to ensure that there is fair competition in the market. They can also affect businesses by increasing value-added tax on products or business rates, This can impact profits. Strategic analysis and future strategies. The first political factor that can be a barrier to social media penetration to promote democracy and social justice is government instability, and more importantly the uncertainty of the laws enacted by the government. The definition of political actor within INFOCORE refers to: “individuals who have obtained at least some measure of political power and/or authority in a particular society who engage in activities that can have a significant influence on decisions, policies, media coverage, and outcomes associated with a given conflict”. 1. If a country is not stable and government keeps changing frequently, the country can never be economically stable as well. If the rate of VAT is raised a company will need to increase their selling price which may reduce sales, Government can implement new laws like the National Minimum Wage, Impacts on profits as the wage costs of the business will rise, Governments can introduce new health and safety legislation, This means that a business may have to change the way it works, for example by training its staff or upgrading its machinery or safety equipment, The vote to leave the European Union, also known as Brexit will have an impact on the way UK firm’s trade with the EU single market, The impact may be negative (a loss of trade with EU customers) or positive (less restrictions placed on firms by EU lawmakers). This is known as a, . ‘Political factors” are those facts of social, cultural, economic &c significance , which if taken as a factor of social solidarity or division, can lead to a distinct and divisive political outcome. The Competition and Markets Authority (CMA) are the main competition policy regulators in the UK. Increased competition encourages suppliers to maintain a good price and a high quality service so they remain competitive against other suppliers. Businesses can’t control external factors but must respond to them. This would include the decisions the government make on: Our team of exam survivors will get you started and keep you going.