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Political Factors Affecting Adidas

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Part A Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96） Political factors Political factors include government regulations and legal issues and define both formal and informal rules.(PEST Analysis n.d.) All the companies have to follow these rules. Some examples include: tax policy, employment laws, environmental regulations, trade restrictions and tariffs political stability.( PEST Analysis n.d.) Changes in tax policy can easily affect Adidas because the government can take action and change the policies at any time, such as taxes, quotas, etc. These will affect the imports and exports of Adidas. For example, if the government limits the number of products allowed to import, the sales of Adidas products will be directly influenced. Because Adidas may get less imported products than they normally do. Adidas is well aware of the political situation in the country where each branch is located. Adidas has been prepared to deal with political problems and away from politics, unless the political environment affects its associated operating principles. The political risk in Singapore is quite low.(PESTLE Analysis of Singapore n.d.) In fact, the

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