Page 41 - APM Integrated Workbook STUDENT S18-J19

Environmental influences

1.4 Political factors – the ‘P’ in PEST

The policies chosen by government will have an impact on the organisation’s
performance.

Examples of government policy

Fiscal policy Monetary Supply-side Green policy/
 The policy policy externalities
government’s  Manages  Aims to  Negative
taxation and economy improve externalities
spending through supply of are the costs
plans. control of resources in of production

 Impact on money the economy, experienced
performance supply, e.g. e.g. by society,
of using interest investment in e.g. car
organisation rates. employee emissions.
– e.g.  Impact on training or The
taxation performance low employee government
policy will of taxes. may impose
impact organisation  Impact on green
profitability. – e.g. interest performance policies.
rates will of  Impact on
impact organisation performance
borrowing – e.g. staff of
cost. productivity organisation
linked to – e.g.
skills and imposed tax
training. will impact
profitability.

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