Many political factors have an influence on the business community, ranging from the philosophy of the governing party to political responses to economic trends. When government leaders and agencies set policies, they start trends that often have a powerful influence on the legal structure within which businesses either thrive or start to atrophy, as well as financial market conditions affecting consumer attitudes and the level of assistance that the government offers to businesses. Being able to read the political winds is a crucial part of strategic planning for a business.Know More
One area in which political parties often differ is the degree of regulation that the business community needs to face. When the party permitting a more hands-off approach to regulating businesses is in power, then businesses do not have to worry about oversight in the areas of safety and environmental protection as much as they do when the party that favors more regulation is in the majority.
Political parties also differ in the way they view business tax structure. More conservative parties tend to want lower taxes on businesses, with the idea that less taxation brings in more business. More liberal parties tend to raise taxes, making it costlier for businesses to operate.Learn more in Business Resources
A business plan is a document that outlines a product, service or business concept and helps convince people of the value of the company providing them. A business plan is an essential tool used to communicate the vision of the proposed business.Full Answer >
Business risk is the chance that the overhead a business faces to stay in operation is larger than the money the owner has to spend on it. The owner takes upon himself the risk that cash flow from the business may be inadequate to meet the expenses the business incurs.Full Answer >
A business model is a formal outline of a company's revenue strategy, products, market and desired course of growth. It outlines and identifies how a company converts its products and services into revenue. Business models vary greatly from company to company based on its products and market. However, they generally provide details on the company's products, markets, utility, uniqueness and vision.Full Answer >
International business is important because it gives domestic companies access to new markets, potentially increasing sales and profitability. Operating internationally can also help a company lower expenses through direct access to cheaper materials and labor.Full Answer >