Economic factors include all macroeconomic variables that can have an impact on businesses. Some examples of important economic factors for the enterprise may be: the business cycle (phase of the cycle in which the enterprise finds itself: growth, crisis), economic growth (trends in important economic measures such as gross domestic product), the balance of payments situation and the level of exports and imports, exchange rates, changes in interest rates, money supply, inflation and price developments, unemployment and employment rates, disposable and per capita income, and the availability and cost of energy. The main actors in this environment are government agencies, political parties and interest groups. Depending on their performance, it can be said that they favor or restrict the business sector. This applies in particular to internationally active companies, as the emergence of global powers or international agreements between countries can limit their competitiveness in the market. Here are some examples of elements of the political environment and how they affect the business: These factors include both the political aspects of the country in which the company operates and the factors that make up the legal framework of that country. If a company decides to launch an internationalization strategy (which means that it will compete in countries other than the home country), it is very important that it receives information about its political structure (especially if the country maintains some political stability) and its legal structure (e.g. competition regulation). Examples of political-legal factors important for the company may be: competition law (monopoly law), commercial law (regulation of the operation of commercial companies in their various forms: anonymous, limited, cooperative, labour law), labour law (labour market regulation and protection of employees), consumer protection law, legislation on the quality and safety of products and services, legislation on environmental protection, energy consumption, tax policy, subsidy and subsidy policy, social and equality policy and political stability (government situation, opposition party policy, etc.). This group includes a wide variety and heterogeneity of factors. Cultural factors include the level of education, the relationship between the education system and enterprise and society, as well as continuing education and retraining. The social factors to be analysed may be demography (population ageing, birth rate, population distribution, impact of immigration, etc.), income distribution, social mobility, lifestyle changes, work-life balance, attitudes towards work and leisure or consumption.

However, depending on the size of the ±, the company or its industry can influence its political environment. So there is a correlation between the political environment and the company. The analysis of the political environment is fundamental in the preparation of the strategic©plan of a business project. Institutional organization directly affects the ability of companies to influence their political environment. In highly decentralized societies, companies have better access to actors in the political environment. These determine how the company relates to its internal elements such as people (labour legislation) and its own capital (tax and commercial rules). The political environment, along with economics, sociodemographic and technology (PEST), forms the macro or general environment of a company. Some authors also©include the environment among these macrovariates.

This element includes the specific legal provisions that govern the operation of companies. The political environment of a particular society may be different, and companies must be prepared to deal with the potential impact this can have on the development of their business. The creation of supranational bodies can affect a country`s legislation in terms©of trade, social policy, etc., which ultimately affects the functioning of the company. In general, in societies governed by liberal parties, current legislation favours the free functioning of enterprises, while in societies governed by socialist parties there is a greater tendency to protect workers and consumers, and therefore the legislation is more restrictive. This environment can be analyzed by two axes: political stability and expressions of power, which are reflected in laws, resolutions, decrees, ordinances, etc. For this reason, most authors describe the importance of current legislation in this environment as a political-legal environment. Finally, technological factors are linked to the impact that new information and communication technologies can have on companies. In this case, a distinction should be made between the technological factors of the general environment (which affect any type of business) and the technological factors of the competitive environment (this is a specific technology applied to a particular sector or industry). Technological factors in the general environment include public spending on R+D+I (research, development and innovation), patent and trademark development, government and industry attention to technological efforts, new discoveries and developments of processes, products, services and techniques, speed of technology transfer and obsolescence rates. The tax for companies in free zones is about 15%, while for almost all other companies, this tax is usually about 35%. The variables of the political environment that influence the existence and profitability of a company act from the different levels of governmental organization (international, state, federal or autonomous and local).

These include the following elements: A very clear example± of the importance of studying the political environment of the company in order to design a strategic©plan for companies located in free zones. The ideology of the ruling political party determines the legal environment in which the company must develop. The difference is so large that a business could survive in a free zone subject to a 15% tax, but would not be profitable or profitable in a scenario where it would have to bear a tax burden of 35%. The political orientation of the ruling party has a strong impact on the functioning of companies in©terms of taxes, public spending, etc. Sri Lanka`s civil war began in 1983 and ended in 2009. Such a protracted war has had catastrophic consequences on the country`s economic fabric and has had an impact on both domestic consumption and exports. Here are some examples of regulations that specifically affect the company: This policy has radically changed the business environment for healthcare companies, which has gone from low demand with high prices to high demand at low prices. The political environment of a company refers to the institutional context that exists in the society in which a particular company operates. This context influences the operation and viability of businesses. It is an external element of the company; Therefore, he cannot control it.

With the adoption of Bill 100, many companies dedicated to the provision of health services (optics, clinical laboratories, dental clinics, etc.) have emerged. Although they received a low price for their service, the demand was constant and extensive as it was accessible to the entire population. Technique to carry out the analysis of the general framework and identify opportunities and risks for the company by grouping the factors of the environment into: political-legal factors, economic factors, socio-cultural factors and technological factors. This work was made possible by the UNJFSC, Academic School of Industrial Engineering, for the opportunity it offers to all people looking for their personal improvement.