How political changes might influence your business management
Taxes and financial influence
One of the more popular influences that a change in political power can have on business management is their change or creation of taxes. One of the areas of business management includes dealing with the businesses money. Businesses use money in a variety of ways and one of the most important things to a good business is that they have more money than they spend.
Businesses have very little, if any, say in what the government taxes them on. And political changes could influence business management by forcing a change in budget when the taxes are increased. Businesses need to follow the laws and if that means that they have to pay more in taxes, they have to abide by that law.
War and financial influence
Political changes can also bring about times of war. This can definitely affect business management as well. Wars usually affect the countries stock market, the spending of the citizens of the country, which can affect businesses. This type of political change also involves a business' financial management. If a company does business with a company from another country and a change in political power brings about a war with that country this may also influence the business management.
Political changes and the stock market
When there are political changes in a country there may also be changes to the stock market (whether or not there is a war.) Different political parties have different ideas for the economy and they put different policies in place. Sometimes political parties can improve the stock market while they are in office and some may worsen the economy. This affects business management since business' shares are sold on the stock market and the businesses use this money to hopefully improve their business. If there is less money, businesses may not improve.
A lot depends on the stock market. If the country is in a recession, they will purchase less goods and services. If less goods and services are purchased, businesses will have less money. Business management is a process that includes many parts of running a business, and these parts require money. With less money, a business manager will have to figure out new ways to produce their goods, market them, finance them, and how to research for and develop products.
A good thing
Political changes are not always a bad things for business management. Sometimes a political change can be a good thing for businesses. A political change in a country can mean more and/or new opportunities for business managers and their businesses.
Sometimes business managers find their business in trouble, perhaps it is in financial crisis. Sometimes if there is a political change, a suffering business may have new opportunities presented to them to help them make it through. Sometimes business managers can make changes to their businesses (such as energy efficient improvements) and receive rewards for making green investments in their company.
It is surprising how many things, such as political changes, can influence business management. Businesses and their managers need to pay attention to political changes both in their local government as well as any political changes in their country.