Organization's Environment: Political Factors Affecting An Organization

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Organization’s Environment
Every organization is concerned with its relationship with their environment and the effects of those relationships on organizational functioning. Some of those factors which can have a bearing on Britannia’s functioning are issues related to economic reforms, technological advancements, political, legislation and legislative changes etc. Britannia has to take into account all these factors and more while formulating its strategies and policies. An Organization’s Environment
A PEST analysis can be performed to identify the external forces affecting an organization .This is a simple analysis of an organization’s Political, Economic, Social and Technological environment.
POLITICAL:
Political factors can affect the organization in many ways. The various political factors can lead to creation of certain advantages and opportunities, as well as they lead to regulations and duties on the organization.
Some of the other Political factors affecting Britannia are listed below:
• Acceptance of a basic list of additives
• Matters relating to GMP(Goods Manufacturing Practice), GHP(Good Hygiene Practices)
• Legislation such as the minimum wage or anti-discrimination laws.
• Market regulations.
• Trade agreements, tariffs or restrictions.
The price of certain raw materials like Sugar and Milk has been affected by Government policies. For e.g. Sugar prices in India are subjective to various government regulations. Since sugar is a major input in the bakery, the

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