We all know that every company is affected by all those societal forces which affect the company's ability to serve its customers. Government is also an important part of this macro-environment. The best example of how a government's role can affect the businesses of a country positively is that of the American government. We all saw when the big insurance companies and banks started to fail in America, how the American government bailed out those companies through its massive bailout packages. Thus, governments can play a major stabilizing role for the businesses of every country. Guys, check out this article about how the American governments treat its bankrupt companies and how this treatment has helped the American economy over the years.
2 comments:
Government intervention can prove to be a major constraint in strategy making and therefore many businesses are not in favor of government involvement in internal issues like setting up production plant, but from a societal point of view it can be favourble. Businesses need cost benefit analysis for that even if its a marketing campaign.
Interesting addition.
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