Compiled by EB Kasanda February 13, 2020

Compiled by EB Kasanda February 13, 2020

Compiled by EB Kasanda February 13, 2020
Compiled by EB Kasanda February 13, 2020
 Politics - universal activity affecting
businesses in a variety of ways.

 Politics is concerned with processes which

help to determine how conflict are
contained, modified, postponed or settled
and as such can be seen as a universal
social activity that takes place at:
◦ state level,
◦ corporation level, or
◦ family level.

Compiled by EB Kasanda February 13, 2020

 The Political Environment includes or focuses on
the political system, the government policies and
attitudes towards the business community and
unionism
 It comprise of various stakeholders, such as the
government, political parties with different
ideologies, labour unions, religious organizations,
environmental activists, and various NGOs.
 Its thus one of the most important forces in the
environment that shapes success or downfall of
organizations

Compiled by EB Kasanda February 13, 2020

How governments exercise their power and
the ideological foundations, in the resolution
of conflicts.

Politicalsystems in other ways are ways that

conflicts are resolved.

how a government solves the problems or

conflicts in a country thus reflect the type of
political system in place

Compiled by EB Kasanda February 13, 2020

 Political systems range across two extremes – on
the one hand, ‘authoritarian’ and on the other
‘democratic’
 Authoritarian - the disposition is to settle
conflicts through the enforcement of rules,
regulations and orders by an established authority
which can be an individual/ group (e.g monarch, or
political party – military e.t.c.)

 Limited participation of majority in decision making

 No opposition tolerated

Thursday, February 13, 2020

Compiled by EB Kasanda February 13, 2020

 Democratic - conflicts should be resolved by
rational discussions between the various parties
concerned, with the final solution being accepted
voluntarily by all participants.
 Thus encourages participation and freedom of
expression
 Power is assumed by an election; views of majority
are said to be represented by decisions made
 Key Features Include:
 The key features of democratic systems are:
 A system of competing political parties

Compiled by EB Kasanda February 13, 2020

 An independent judiciary
 Mechanisms for the articulation of sectional
interest (e.g. pressure groups)
 Habitual processes of consultation, bargaining,
explanations, education compromise etc.
 Respect for minority views
 Groups and individuals organised to bring pressure
to bear on governments or parties or the people in
pursuit or particular ideas or interests

Compiled by EB Kasanda February 13, 2020

 Political parties compete for political power and
thus are involved in a lot of activities to win
support
 A pressure group is a group of people who believe
in the same cause and who come together in order
to influence some aspect of society
 May be for issues about the local, regional or
global environment, defense or promotion of the
rights and influence of particular groups, or
consumerism. E.g. Greenpeace

Compiled by EB Kasanda February 13, 2020

 Helping to defend minority interests
 Providing for continuity in communications and
consultation between the governors and the
governed
 Assisting in the implementation of government
policies and legislation

Compiled by EB Kasanda February 13, 2020

 The nature of a country’s political system – tends to
reflect certain underlying social values and
philosophies which help determine how decisions are
made, including decisions about the allocation of
resources.
 Political Ideologies – Political Ideologies represent the
basic beliefs and interests held by political leaders or
their party.
 Political Climate - is the likelihood of a government's
swing to the far left or far right politically

Compiled by EB Kasanda February 13, 2020

 External politico-economic influences –
regional economic blocks e.g. the European
Union, World Bank, the General Agreement
on Tariffs and Trade.
 Political developments in other parts of the
globe – happenings in other parts of the
world especially those that a resource
crucial business such as oil.

Compiled by EB Kasanda February 13, 2020

 To play a game successfully, one must
understand the rules- mangers need to study
the legal frameworks
 The legal environment refers to set of laws
and regulations which influence the business
organizations and their operations.
 These laws and regulations differ from one
country to the next
 No one is above the law, not even businesses
 Non-compliance can lead to devastating
consequences
Compiled by EB Kasanda February 13, 2020
 In many lands there laws that guide operation
of businesses
 Some of these include:
 Remittance of tax
 Compensation of workers
 Payment of minimum wage
 Advertising – deceptive advertising is
unethical and illegal
 Not obeying can lead to litigation and worse
still closure of a business

Compiled by EB Kasanda February 13, 2020

 QUOTE…
"Excellence is never an accident. It is
always the result of high intention,
sincere effort, and intelligent execution;
it represents the wise choice of many
alternatives – choice, not chance,
determines your destiny.“
Aristotle …

Compiled by EB Kasanda February 13, 2020