External-Pest Analysis Of Bega Cheese

Why are Some Nations Rich and Others Poor? Introduction Over the years, a nation’s economy will change drastically and, due to a large variety of factors, there are now countries who are significantly wealthier than others. These factors range from lack of education, to lack of natural resources and all of them notably effect the economy of a country.

Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business,

Political factors refer to the legal activities and political rules that may influence the business in some way. However, ASDA will continue to face many changing in the business for better or maybe worse when it comes to changes in government laws, for example, taxation and unemployment. The government is encouraging business to create or provide different jobs for the consumer this may affect or puts pressure on ASDA as they have to meet the all the government rules and regulation while continues to run the business according to the law (Worthington & Britton

(3) Political and legal environment, factors related to policy and law that influence company’s operation.

It is clear from the list above that political factors often have an impact on companies and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and alter their marketing policy appropriately.

Political factors is an external environment in which a business functions. This is a type of external constraint for a business and are related to actions of governments. This factors can affect how the business operates. Political factors include politicians, who make important decisions. These can be done at national level at the UK

Dairying started in the Bega Valley in the 1850's. In those days each farmer produced and sold products such as cheese and butter from their dairy. After a period of time local farmers decided to improve their individual production and marketing activities and banded together to establish The Bega Co-operative Creamery Company in 1899 (Bega Cheese, 2016). Since 1899, Bega Cheese has grown from a local dairy farmer cooperative into a manufacture, packager and global distributor of a range of dairy products. The growth of Bega Cheese was through strategic cooperation with its competitors such as Coon, Kraft and Mainland. Also, Bega Cheese choose to establish the strategic contract with these competitors for use of their rival’s more efficient

Australia’s Position in the global exporting market is only 22nd, which is far from its leading top trade partners that fit in the Top 5. Also, Australia’s global ranking in the global importing market is 18th, which is under India whose economic status is much lower than Australia. A second disadvantage that Trading brings to Australia is the competition between local small businesses and Trans National Corporations (TNC). Local businesses are closing down and being taken over because of the increase in the entrance of TNCs in Australia. Large Fast food chain Corporations like McDonalds, put local fish and chips shops under pressure. Another disadvantage with Australia being part of International trading is that most of the products that Australia export are agricultural goods that has high tariffs, making it costly for Australia to be able to export.

Bega Cheese Company offers extremely high levels of assurance. The food safety standard of the factory goes far and beyond normal food safety standards as they are graded as ‘pharmaceutical’ grade. The employees who work in the factory wear special clothing that is provided to them in packaging every day. The clothing used while producing the cheese has a restriction of leaving the building as there is a risk of it getting contaminated.

When it comes to political factors, the government stability, taxation policy, social welfare policies and trae regulations shoule be considered.

Political environment – The processes of national, regional and local governments, as well as various power groups that can affect the rules for doing business. This can include government intervention in particular industries, tax policies at all levels, government expenditures for certain causes, legislation aimed at implementing social policy, and regulation of various industries and trade practices.

Political factors can be things that define the influence that the government has on firms. These factors result from government actions that can impact a firm’s decisions and behavior. For example, Cryptocurrency is a digital cash system using cryptography to secure transactions, which is a system currently not controlled by most government bodies. The decentralized nature of Cryptocurrency deters regulation which makes it a threat to the governments monopoly. For instance, in Russia, cryptocurrencies are a threat to the Russian central bank. According to Kenneth Rapoza, “cryptocurrencies have a risk of undermining the circulation of money” (Rapoza,” Russia Faces Internal Battle Over Bitcoin."). They also pose a threat to the government body due to the anonymity of entities within the Cryptocurrency system. These digital cash systems are issued by unidentified entities that can also be involved in illegal activities such as money laundering. Due to the high risks involved in Cryptocurrency, the Russian central bank finds it unideal to allow the circulation of Cryptocurrency without regulations or mandates. This is a similar issue circulating in countries like China, USA, and Canada which can create both a threat and opportunity for Cryptocurrency systems.

Political environment is significant to do business in other countries. There are different factors of political environment. These factors can influence the government decision making and other activities. For foreign investors every country set some rules and regulations. Investor need to maintain these rules and regulation to do business on certain country. Political factors can influence the government to change these regulations. So investors need to know the regulations and get the proper knowledge about political environment.

Political:-These factors include all legal and the government matters that could influence the decision making of any organization. BSNL is also not escaped from these factors, some of these are:

The appreciating Australian dollar has a negative effect for Wafex exports, due to it slashing the returns for the company. There may be a possibility that Australian exported products in China are twice expensive when purchased by wholesalers/importers, thus influencing China market to purchase cheaper priced products from foreign competitors.