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Political Factors Affecting Business

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2.2.1 Political

Political factor often refer to government intervention, entry barriers, tariff structures or tax, which are set to benefit to government or citizen. The political has huge effect on the business. All firm must follow the law and rules because several aspects on government policy given a lot of impact to an industry. When an industry will not be able success, good reputation and trust, if the industry fails to consider legal and political as part of their strategy.

The political environment can bring impact to an organization in many ways. It could be add a risk factor to an industry and lead to a major less. For an example, the business sector will grows because of political stable as the foreign investors and some trading …show more content…

These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a bank cost of capital and therefore to what extent a business grows and expands.. For example, according (Saleem, 2015) the ringgit’s rapid decline and worsening global economy that impact investors and consumers to make an investment in the country will define as the economic issue.

Not only this, the implementation of GST also affects the rate of export and import in the country. Again, exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy.

2.2.3 Social

Social include the cultural aspects and population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the lifestyle of the people. Population changes have a direct impact on organization. Changing in the structures of population will affect the supply and demand of goods and services within an economy, it directly impact in Lita Venture …show more content…

The oxo-biodegradable plastic bag provided four different colour, blue colour for paper, green colour for glass, electrical waste, fabric, aluminium and hazardous waste, the black colour for food waste, disposable diapers and others and white colour for plastic. Besides that, oxo-biodegradable plastic it made by blending a prodegradant additive into the plastic during the extrusion process. The additive causes the plastic will degrade with a fast rate until it has fully degraded into carbon dioxide, water and biomass. For example, recycling 1000kg of paper can saves 17 trees.

2.2.6 Legal

The legal factor refers to the legal environment in which industry operates. The recruitment and employees management regulation, taxation policies, quotas, access to material legal are part of the basic legal framework the set from government for the retail industry. For instance change in employment law on working hours and minimum salary. If new laws are pass relation to employment, national minimum wage or safety and healthy in working place then Lita Venture Hardware will have to comply will all of

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