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The Political Environment Of The Business Politics Essay

Paper Type: Free Essay Subject: Politics
Wordcount: 2325 words Published: 1st Jan 2015

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A business organization is surrounded by various factors that help in the development and growth of the business. These factors constitute the environment of a business. Environment refers to all those factors or forces that can have a strong impact on the functioning of the business and its operations. A business is been circled through some pattern or forces that puts a business to take effective decisions to make all the components work in an efficient manner. These environmental forces have their different adverse effect depending on the level of the organization. The Business environment generally can be divided in two types:

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The micro environment is also known as the internal environment of the business. Micro environment includes all those factors that are in the control of the business. Internal environment determines the strengths and weakness of the company. This environment is the backbone of the business that help a company to know its business and its important parts that together make a business perform. It involves the factors that are directly attached with a business unit. Basically, Micro environment includes:








The macro environment is also known as the external environment of the business. Macro Environment includes all those factors on which the business has no control. Due to this, they have a dramatic effect on the success and profits of the business. External Environment determines the Threats and opportunities of the company. It involves the factors that are indirectly attached with the business. Macro Environment includes:

-Economic Environment

-Technological Environment

-Cultural Environment

-Demographic Environment

-Natural Environment

-Global Environment

-Political-Legal Environment


The Political environment includes all laws, government agencies that influence an organization. Political environment can affect a business either positively or negatively depending on the prevailing situation in a particular country. Generally political environment includes:

Political-legal institutions

The form of government

The ideology of the ruling party

The strength of opposition

Role and responsibility of bureaucracy

These factors influence the business in an enormous amount. The political system prevailing in a country decides, promotes, encourages, directs and controls the business activities of that country. A country requires a honest, stable, efficient and dynamic political system for its economic growth.

These are explained as:


India is a democratic country. In india, there are three types of political institutions namely legislative, executive and judiciary.


Of the three, the legislature is the most powerful political institution with boost powers such as law-making, budget, Policy making, Budget approving, Executive control, etc.

The impact of Legislature on Business is very influencing. It decides that what business activities should be carried out in a country, Who should own them, what should happen to their earnings and various other factors.


It is also known as Government institution. Government is the central authority that has the power to regulate the business and control its operations. This institution defines the boundaries of a business unit. Executive Institutions aims at Directing and controlling of Business activities.

Executive Environment involves Responsibility of Business to Government and The responsibility of Government to The Business.


Judiciary provides the business, a manner in which the work of the Business has to be fulfilled. The judiciary in India is influenced by its political system. The Government of India defines the legal framework within which firms do their respective business.

Indian Judiciary has mainly two powers:

>The authority of the courts to settle legal disputes.

>The authority of the courts to rule on the constitutionality of legislation.


The political environment of a business is also affected by the form of the government a country has. The Government of India, mainly known as the Central Government, was established by the Constitution of India. It Governs 28 states and 7 union territories. It is Situated in New Delhi that is the capital of India.

The government comprises three branches: the executive, the legislative and the judiciary. The executive branch is headed by the President, who is the Head of State and exercises his or her power directly or through officers subordinate to him. The legislative branch or the Parliament consists of the lower house, the Lok Sabha, and the upper house, the Rajya Sabha, as well as th President. The judicial branch has the Supreme Court at its apex, 21 High Courts, and numerous civil, criminal and family courts at the district level. India is the largest democracy in the world.

Government type in India:

In India, every district and state has a different government type to run at various levels. Some of them are:

Absolute monarchy – a form of government where the monarch rules unhindered, i.e., without any laws, constitution, or legally organized opposition.

Communist – a system of government in which the state devices and controls the economy and a single – often authoritarian – party holds power; state controls are imposed with the elimination of private ownership of property or capital while claiming to make growth toward a higher social order in which all goods are equally shared by the people (i.e., a classless society).

Constitutional – a government by or operating under an authoritative document (constitution) that sets forth the system of fundamental laws and principles that determines the nature, functions, and restrictions of that government.

Democracy – a form of government in which the supreme power is retained by the people, but periodically renewed.

Democratic republic – a state in which the supreme power rests in the body of citizens allowed to vote for officers and representatives responsible to them.

Monarchy – a government in which the supreme power is stuck in the hands of a monarch who reigns over a state or territory, usually for life and by hereditary right; the monarch may be either a sole complete ruler or a sovereign – such as a king, queen, or prince – having a limited authority as per the constitution.

Socialism – a government in which the means of setting up, producing, and distributing goods is controlled by a central government that supposedly seeks a more just and equitable distribution of property and labor; in actuality, most socialist governments have ended up being no more than dictatorships over workers by a ruling elite.

Totalitarian – In Totalitarian, the government seeks to subordinate the individual to the state by taking political and economic matters, the attitudes, values, and beliefs of its population.


Ideology basically means the facts in mind of a person that how one perceives the ideas and strategies of himself to achieve the desired goals and targets. Ideology deals with the Psychology of a person. In constitutional terms, Ideology refers to the political abilities and ideas of a ruling party in power.

Ruling party in power means the party that comes into power by lawful means and who has the powers to rule his/ her specified area.

In India, various ruling parties are ruling from the past times. Some of them are:






Indian National Congress (INC) is the largest political ruling party in India. INC is one of the oldest political democratic ruling parties in the world. It was founded in 1885 by members of occultist movement. It was not so much popular at that time. But After the independence (1947), when the ruling come on the hands of Jawaharlal Nehru and Indira

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Gandhi, INC has touched the new peeks of success every time by its strong decision making and ideas that leads the whole country. In 2009, the congress becomes the single largest party in Lok Sabha where 205 of INC candidates got elected to the 543-member house.


Bharatiya Janata Party (BJP), is also one of the largest political ruling party in India. BJP was established in 1980. BJP concentrates of factors like self-reliance, social justice, foreign policy, Fiscal Policy, etc.


The BJP headed the national government from 1998 to 2004, under the Leadership of Atal Bihari Vajpayee, making it the first non-Congress government to last the full term in office.


Samajwadi Party is a political party in India operated in Uttar Pradesh. It was founded on October 4, 1992. This party aims at serving the society especially to the classes which are not so popular as compared to other segments. It mainly worked on the Backward Classes.


The opposition in a democracy plays as vital a role as the government. In India, there are a lot of opposition parties that are constantly quarrelling among themselves. This is the greatest back point of Indian democracy. In India there is no strong and fair opposition strength. The opposition parties do not have any clear cut programme and policies. The leaders of the opposition parties also have no idea of their aims and objectives. They always quarrel for power and their ruling. There are often defections in the parties. People do not have trust in such parties, and so the opposition’s fails to secure a majority in the elections. In the legislature itself, their leaders indulge in negative criticism to gain their political ends.

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Oppositions play a very significant role in the democracy of a country. The opposition can help a country in accelerating its resources, and it may also slower down the pace of the country. For instance, the violence in Gujarat, Bihar, Assam and Punjab resulted in great loss of life and the opposition’s power to achieve their objectives. The Government’s policy of State Trading in Food grains was wrongly criticized for political reasons. The result was that procurement targets could not be reached and wheat had to be import to build up comfortable buffer stock. This was essential to hold the price-line. Such a destructive move towards is against the national interest.

The main reason for slow growth of India is the opposition parties. These parties only aim at selfishness and they forget their aims and objectives. Parties can come together on the basis of ordinary ideology. For example, the Bharatiya Janata Party was a combination of a number of strong political parties. It could not rule the nation for any length of time. It was thrown out of power due to the inter-quarrelling of the opposition parties.

In a democracy, the Government and the opposition parties should together aim at only one objective i.e. the benefit of people. The opposition should criticize the government in such rules that will affect the interest of the people. Criticism should be based on sound ideas, rules and principles. Opposition parties must keep in mind that they may be called upon by the people to form the Government by any time. Therefore, they should do their work will full efficiency and dedication.


A bureaucracy is a group of non-elected officials within a government or other institution that implements the rules, laws, ideas, and functions of their institution. Bureaucracy is also known as Personnel management, manpower management, etc. because it mainly deals with public administration. It deals with classification, recruitment promotion compensation, discipline and retirement benefits of the personnel in government.


1. Implementation of Policy –

It is the most important and fundamental function of Bureaucratic approach. It executes laws and policies to attain the goals of welfare state that is social equity economic development. It is done with the help of civil servants.

2. Formulation of Policy-

Formulation of Policy is the second function of Bureaucratic approach. It is performed by political executives. Civil servants advise the ministers in policy making. Political executives being amateurs cannot understand the technical complexities and difficulties of the policies and hence they depend upon the expert advice of professional civil servants.

3. Delegated Legislation-

This is a legislative function that is performed by the Civil Service. Due to lack of time, pressure of work and increased complexities of legislation, the legislative makes laws in short form and delegates the powers to the subordinate executives to complete the Laws, rules and regulations.

4. Administrative Adjudication-

This is a judicial function performed by the civil service. The civil servants settle disputes between the citizens and the state.


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