Political Factors Of The Government Commerce Essay


or how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labou law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

The government signed a policy for reduction of CO2 emission which shows that the government cares for the environment and encourages Green Products .

Also the government started to use pravatisation ,so it started to privatize bus service in UK,to ensure copmpttion and low price to consumers.

government started to use pravatisation, so it started to privatize bus service in UK, to ensure copmpttion and low price to consumers.

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In general the political view has a huge authority and control to the business. From case study (1): 'Countries which sign the agreement intend to reduce the emission of harmful gases.

From case study (2):

-concentrates on working closely with local government. For it case study, provides a service to local schools and plans bus routes that are convenient for elderly people.

- Government initiative to encourage more children to use bus services rather than traveling to school by car

Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy.

Demand id an economic factor ,first has responded to increaced demand like the provision of high quality yellow school bus transport.

There is another fact that is affecting Firsts business is taxiation , the high tax of fuel makes people to use buses rather their own cars.

Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

First aims is to make the costumers feel good and they can relay on public transport ,so that means people always use a transport that makes them feel comfortabe and safe, they want to use environmen friendly services.first make relaibe buses for elderly people.

Technological factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

Governmet provides services to local school by providing yellow buses for students, with special features like: padded seating,integrated seat beltand additional scape.

The other services that government applies are payment thrrugh smart cards.e mail and all technology factors.

Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

The legel a greement - the Kyoto protocol signed by the government in an initiative to reduce CO2 emissins ,is a legel factor affectuing the business.


The strength in First Choice PLC :providing reliable, innovative and sustainable transport services.By providing a vast range of transportation solution , First Choice differntiated itseself ,so this is a benefit for them.

Your specialist marketing expertise.

A new, innovative product or service.

Location of your business.

Quality processes and procedures.

Any other aspect of your business that adds value to your product or service.

By aiming for the top in everything we do and helping each other we can deliver the highest levels of safety and service and give greater customer and employee satisfaction.

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From case study they have developed strict operating practices based on the latest industry standards, At FIRST, they aim to deliver the perfect journey by offering personalized service in a simple, distinctive, accessible way. Customers must find services easy to access and user-friendly, forward thinking, innovative and possessing a 'can do' attitude are qualities they value in their employees.

Weakness of First Choice PLS:first is a global business ,but it aims to be local in its approach.this could have a negetive impact on first operations.

These credits will permit companies to generate specific quantities of carbon emissions.'

Lock of marketing expertise.

Undifferentiated products or services.

Location of your business.

Poor quality goods or services.


From case study they must continually review and achieve these standards to ensure our staff, customers and stakeholders' expectations are exceeded and the environment we live in is enhanced. They need to invest in employees and ensure they recruit, develop and retain the best people in the industry.

Oppertuinity of First Choice PLC: people are turning mobile and travel a lot ,that means they will use public transport ,so this what First Choice is providing for them and encourging the costumer to turn green and care for environment.

A developing market such as the internet

Mergers ,joint ventures or strategic alliances

Moving into new market segments that offer improved profits

A new international market

A market vacated by an ineffective competitor

Another factor affecting FIRST,S business is taxation . High tax on fuel encourages customers to switch from using cars to more economical bus and rail transport.

The number of older people in the auk is rising .there are more people with bus passes in this country than ever before.

From case study another factor affecting FIRST's business is taxation. High tax on fuel encourages customers to switch from using cars to more economical bus and rail transport, • the number of older people in the UK is rising. There are more people with bus passes in this country than ever before. The passes mean that users travel free, as the local, • Society's habits and tastes are changing. People are more aware of the importance of the environment and becoming 'green consumers'.

Threats of First Choice PLC:easy entry ofcompetition due to gouts privatisation initiative.

This can be solved because First differentiating it self and it aims to satisfy the customers .

A new competitor in your home market

Price wars with competitors

A competitor has a new , innovative product or service

Competitors have superior access to channels of distribution

No major found by the company but we have been serous in handling competitions and we have been looking the changes of customer tastes for preferences.

From case study Businesses are continually developing new technologies to provide the best solutions for the market place. Intelligent companies find out what the most appropriate technologies are for their businesses and use them. These provide better accessibility for disabled and elderly people. FIRST has invested heavily to meet government targets for the provision of low-floor buses

These are state-of-the-art articulated vehicles that look like trams but have the flexibility of a bus and use normal roads.


PEST and SWOT are tools that every organisation use.

These are giudlines that First Choice can use to know how to conduct a SWOT analysis:

Brainstorming to know what are the strengh,weaknesses(S,W),opportunities and threats(O,T).knowing which of them are internal and which of them are external.

Taking the ideas and put them in alist ,then list the ideas within each category ,then reduce them to the top 5 to 10 ideas.

Review each category separately and discuss each of them.

SWOT analysis is atool that the organisation use it to gain better understanding of how the organization can relate to its extenal environment.

The final step is to know if the strength and opportunity in the extenal envronment.alsoforthe weaknesess and threats.

SWOT os just a stratigic tool that aompany like First can use.Acompany can pay attention to any of the s,w,o,t threats.

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After all the SWOT analysis is not a way to determine strategy, it's just a tool that helps to emphasis the strategy.


organizational values also known as "beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another.

First Choice PLC aims to deliver the highest levels of saftey also give greater customer and employee satisfaction.

An assumption is a proposition that is taken for granted, as if it were true based upon presupposition without preponderance of the facts.

First employee has a responsibility for safety . the right attidue to safety :putting in p;ace the right policies,procedures,equipment,traning and support.they will live the safety and ensure the future of the business.

First offers personalizing service in a simple distictive, accessible way.Employee must understand what people need and deliver it in a simple way.they treat each other as equals and deal with situation In an honest and proffesional manner.

First aims to be the most progressive public transport provider.Safety is taken for granted assumption .Every costomer exepet a safe deliver and take it for granted that would reach his destination.


This has rapid feedback/reward and low risk, leading to:

Stress coming from quantity of work rather than uncertainty.

High-speed action leading to high-speed recreation.

Eg. Restaurants, software companies.

The Work Hard/Play Hard Culture is characterized by few risks being taken, all with rapid feedback. This is typical in large organizations, which strive for high quality customer service. It is often characterized by team meetings, jargon and buzzwords.

Employees are given quick rewards like inccentive.share.bonus

. Organization Behavior is the study of individuals and groups in organizationThe shared values and beliefs among people in organization that affects the way they interacts, behaves and accomplishes certain task that distinguish one organization with other organization

First aims to be transparent in their dealings with others

Organizational culture is: The personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs of organizational members and behavior. You can tell the culture of an organization by looking at the arrangement of furniture, what they brag about, what members wear, etc…

From case study: FIRST: 'They aim to be transparent in their dealings with others, so it is clear what they are striving for and how we intend to achieve it'.

'Customers must find services easy to access and user-friendly'.

'Our people must be dedicated and passionate about customer service, which will result in strong, empathetic and lasting relationship'.

'By treating each other as equals and dealing with situations in an honest and professional manner, they will gain the respect of customers and colleagues'.


Process culture

This has slow feedback/reward and low risk, leading to:

Low stress, plodding work, comfort and security. Stress may come from internal politics and stupidity of the system.

Development of bureaucracies and other ways of maintaining the status quo.

Focus on security of the past and of the future.

Eg. banks, insurance companies.

The Process Culture occurs in organizations where there is little or no feedback. People become bogged down with how things are done not with what is to be achieved. This is often associated with bureaucracies. While it is easy to criticize these cultures for being overly cautious or bogged down in red tape, they do produce consistent results, which is ideal in, for example, public services