Pest on Unilever Essay

governmental factors influence organisations in many ways. semipolitical factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the fol griming types of instrument Legislation much(prenominal) as the token(prenominal) wage or anti discrimination laws. Voluntary codes and practices Market regulations employment agreements, tariffs or restrictions Tax levies and tax breaks Type of government regime eg communist, democratic, absolutism Non conformance with legislative obligations can lead to sanctions such as fines, untoward publicity and imprisonment.Ineffective voluntary codes and practices will often lead to governments introducing order to regulate the activities covered by the codes and practices. ECONOMICAL The second element of a PEST analysis involves a study of economic factors. All businesses ar affected by national and orbicular economic factors. National a nd piece-wide interest rate and fiscal policy will be touch on around economic conditions. The climate of the economy dictates how consumers, suppliers and other governanceal stakeholders such as suppliers and creditors be turn in within society.An economy undergoing recession will have high unemployment, low spending 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 respond to economic conditions and stakeholder behavior. Furthermore organisations will need to analyse the impact economic conditions are having on their competitors and respond accordingly. In this global business world organisations are affected by economies throughout the world and not just the countries in which they are based or ferment from.For example a global credit crunch originating in the ground forces contributed towards the credit crunch in the UK in 2007/08. Ch eaper labour in maturation 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 unseemly weather conditions in India may affect the price of tea bought in an English cafe. A truly global player has to be sensible of economic conditions across all borders and needs to ensure that it employs strategies that protect and rear its business through economic conditions throughout the world.