Q.1) Explain How Macro Environmental Factor Affect International Business Product With An Example.
There are many factors in the macro-environment that will affect the decisions of the managers of any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyze these factors managers can categories them using the PESTEL model. This classification distinguishes between:
Political factors:
These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political
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Legal changes can affect a firm 's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).
Different categories of law include: * consumer laws: these are designed to protect customers against unfair practices such as misleading descriptions of the product * competition laws: these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power * Employment laws: these cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect employees against the abuse of power by managers * Health and safety legislation: these laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate provision of safety equipment
Typical PESTEL factors to consider include: Factor Could include: * Political e.g.: EU enlargement, the euro, international trade, taxation policy * Economic e.g.: interest rates, exchange rates, national income, inflation, unemployment, Stock Market * Social e.g.: ageing population, attitudes to work, income distribution * Technological e.g.: innovation, new product development, rate of technological obsolescence * Environmental e.g. : global warming, environmental issues * Legal e.g. : competition
Health and safety at work act 1974 and 1992: This act is put into place for all places of employments. All employees have a duty of care to provide for the staff, ensuring that all equipment is safe and it does not have any risk. Employee, staff and volunteers have to take care of themselves and others around them.
The main features of the Health and Safety at Work Act (1974) is that it requires certain health and safety procedures to be maintained in a health and social care setting, for example, the act explains that there must be, safe operation and maintenance of working equipment, plant and system, maintenance of safe access to the workplace, safe use, handling and storage of dangerous/hazardous substances, training of staff to ensure that there is health and safety, to provide welfare for staff at work.
Answer – The Health and Safety at Work Act 1974 is the main piece of the health and safety legislation in Great Britain. It provides the legal framework to promote and encourage high standards in the workplace.
The Health and Safety at Work Act was put in place in 1974. This primary legislation covers occupational health and safety ensuring employees and employers are safe within their working environment.
Employers must provide a safe working environment for all of their employees. The legislation states it is an employer’s duty "to ensure, so far as is reasonably practicable, the health, safety and welfare at work" of all their employees as well as others on their premises, including temps, casual workers, the self-employed, clients, visitors and the general public.Workers health is paramount within an organisation, employers must ensure that all workers health is not affected by the work they are doing and put in place all necessities to prevent this. The Health and Safety at Work Act sets out specific standards which can add costs to a business, however these costs are considered essential for the safety of all workers. Most of the costs come from training staff about health and safety and putting in place procedures to maintain this. This act prevents unfair unsafe working conditions which in turn reduces the likelihood of accidents or injury at work. If a worker has injured themselves at work due to something which could have been otherwise prevented by the company had the followed the guidelines of the Health and Safety at Work Act they company may be required to pay out for the injury. For those who employ five or more staff, employers must also keep and revise a written record of health and safety policy and consult
The Health and Safety at Work Act 1974 covers many health and safety legislations in England and Wales. These include, RIDDOR, COSHH, First Aid, Fire Regulations etc. All of these legislations need to be understood and adhered to when planning any activities.
2.1. There are many legislations relating to general health and safety in a health and social care work setting:
1.1 - Explain the legislative framework for health, safety and risk management in the work setting. The Health and safety at Work etc. Act 1974 is the major piece of the health and safety legislation in Great Britain. It provides the legal framework to promote, stimulate and encourage high standards.
Also it tells me what will happen if one of the parties fail to respect them.
Health and safety legislations and regulations are implemented in own work settings because there will always be a possibility of accidents happening which may damage someone’s health and all work will expose people to hazards, however the health and safety legislations and regulations are put in place and used so that these risks and hazards are under control and so everyone’s health (staff and children) are safe at all costs.
As businesses have become more powerful with stronger bargaining positions, Parliament has passed more laws that have had an impact on
Traditional consumer protection regulations - These protect purchasers and consumers whether they are buying the goods over the counter of a shop or over the internet.
At a national level, government passes legislation that directly affects the relationship between the firm and its customers and between itself and other firms. Sometimes legislation has a direct effect on marketers, for example a law giving consumers rights against the seller of faulty goods. At other times, the effect is less direct, as where legislation requiring local authorities to put out to tender some of their duties has the effect of creating more competitive relationships between firms in a market
* The Government set the laws, regulations and policies that can promote or limit the individuals and organizations in a society
As an entrepreneur, they need to evaluate the environment not only prior to the start-up of their business but also during the growth stage of ventures. The environment means the situation where the company business ventures operate. As we know, ventures environment can be divided into two sections that are External environment and Internal environment. And the external environment also divided into two parts, which are Macro environment and Micro environment. But in this section, I just discuss about Macro environment. The elements of macro environment can affect business decision-making in the long term and unstoppable. Macro environment contains of four elements, such as Politic and legislation, Economy,