Pestel Analysis, Political and Legal Factors Research Paper

Pestel Analysis, Political and Legal Factors - Research Paper Example This essay will therefore present a pestle analysis for college Hunks Hauling Junk Company. Political and Legal Factors The government has interests on how businesses are run. This interest is experienced through direct and indirect control of business by the government. Political and legal processes in a country are the main channels through which the government influences an industry. The government has interest in the running of business due to its social responsibilities. In particular, the federal government, local author and state governments have an interest in the junk industry due to their assumed responsibilities. The risks associated with the junk business are the main cause of government’s interest in the industry. Such risks are concerned with the safety of the employees as well as the environment. In response to the need of protecting the environment and people, the government has established the relevant legislations and policies. These laws and policies form th e legal factors that affect the industry. The Environment Protection Act was specifically established to protect the environment from harmful effects resulting from uncontrolled business practices. This Act has provisions that regulate waste management, recycling, and disposal. Such policies will have an effect to the company that will be felt through regulations on its business. Protection of employees from exploitation by employers is the responsibility of the government. The junk industry is labor intensive and therefore employees form a major part of junk companies. Employment laws of the United States are applied by the government to regulate employment with emphasis in protection of employees from exploitation. The company is therefore expected to be conversant with these laws and their implication in the business. The junk industry has disposal of wastes as a major part of their day-to-day operations. Companies in the junk industry are also involved with recycling as part of their strategic management. Recycling and disposal of waste are processes of interest to the authorities especially the local government. In response to the two activities, the government has established environment protection measures through relevant laws and policies. The legislations and policies are mainly concerned with the disposal and recycling of hazardous wastes. Due to its operation scale, College Hunks Hauling Company needs to consider these legislations and policies. Economic Factors Economic factors in an industry are factors that determine a business’s rate of success in the industry. These factors affect availability of capital, operation cost and the demand of a company’s products (Grant 95). Consumption is an important process in sustenance of business and therefore factors that affects people’s consumption affects business operations. The disposable income of a country gives a measure on how much the consumers are able and ready to spend at a particular time. The company will therefore be affected by the variations in the consumer’s consumption power resulting from the level of disposable income of a country. Currently, the United States’ level of disposable income per household is slightly above 10%. This is a significant figure compared to the current taxation rates and the spending rates experienced in previous years. The junk industry depends on the rate at which people replace their old and worn out