The business environment

The business environment of General Electric

[Name of the author]

[Name of the Institute]

Introduction

This paper will analyze the business environment under which General Electric operates. The business environment will include all the factors such as government laws and regulation in different parts of the world. The business environment is very important for any company to carry on their operations in different parts of the world. It allows company to expand and operate under favorable conditions. Business environment has wide effects on the operations of the company. If the business environment is favorable, the company can invest and grow significantly. However, if the business environment poses serious concerns, then it become difficult for companies to operate because there are various risks and issues involved in the environment which make the business market unfavorable for the company.

Business environment of the General Electric

The success of General Electric to the large extent is dependent on the public policies which are prevalent in USA at all the levels. Government regulates the policies and laws which are in the best interest of the people of United States. These policies also affect the business environment of the company. Government takes decisions after carrying discussion with the business associates and also addresses their issues which they are facing. In this way, General Electric shapes its own policy under which it has to operate in the business markets. The business issue is debated with the government officials in the presence of stakeholders of the company. There is a consensus on all the issues relating to the business environment and General Electric always take its strategic decisions bases on the Government policies which have a greater impact on the policies of the company. The legislature of state discuss various issues which affect the business environment such as trade barriers, government taxes, energy production, healthcare facilities and political and legal environment of the business.

General Electric Political Action Committee

The General Electric political action committee is a body which studies the laws and regulations which are implemented by the government. It is very important for the company to analyze the implications of the law as it affects the business environment greatly. Any change in laws and business regulations can make company to adopt changes considering the current business scenario.

The company has to make such policies as which are in accordance with the public policy, corporate governance and corporate social responsibility. The board of directors of the company reviews the policies of the company which are related to the political, legal and environmental factors of the business. Various economic indicators such as inflation, interest rate and tax exemptions are set by the government through its laws and regulations. These all indicators identify the significance of the business environment for the company. The company has to spend sometimes in the general interest of public to gain the acceptance of masses and create awareness. It spent on the campaign of the candidates and give money to the political organizations. However, the law of US prohibits companies ...