POLITICAL AND LEGAL ENVIRONMENT

Political-legal environment is a collection of factors :-

1. General state of politics
2. Degree of politicalisation of business & economic issues
3. The law and order situation
4. Political stability and ideology & practices of the ruling
party
5. Efficiency of govt. agencies
6. The extent of governmental intervention in the economy
and the industry
7. Government policies fiscal,monetary,industrial,labour etc.
8. Specific legal enactments and framework in wch enterprise
has to function
9. Public attitude towards business in general and the
enterprise in particular



1. Government A business is highly guided and controlled by
government policy. Type of govt. running a country
influence a business. Framework, impact, taxes and duties

2. Legal sound legal system, laws for consumer protection,
competition and organizations.

3. Political political uncertainty, political movements against
certain products, service and organization, politicalisation
of trade unions.
Government Laws: complex law relating to business, tax
laws are imp. as they have direct impact on firms. To go out
of business, change their operating strategies, or to move
another state.
National defence posture: massive military establishments
to small ceremonial guard. How much spending on defence
power great drain on critically scarce manpower, materials
and capital.
Foreign Policy: foreign investment, know-how, technology
and imports.
Political stability: high degree of political stability does not
assure a high degree of industrial progress. Political
instability undermine managerial performance and
economic development.

Political Organization: structure and pattern of political
administration of a country, variety of central ministries as
industries, commerce, finance and planning.
Provisions of the Constitution: DPSP, rights and duties of
citizens, legislative powers of central and states.
Judicial decisions: Legislature and the government functions
should be in the interest of the public and act within
boundaries of constitution.
Courts of law: Courts are institutions established by law
which solves legal and equal.
Law administrators: Governments agencies, lawyers, police,
and jail ensures implementation of laws and judgements.

A political system is a system of politics and government. It is
usually compared to the law system, economic system,
cultural system, and other social systems. It is different from
them, and can be generally defined on a spectrum from left,
i.e., communism and socialism to the right.

A political system is a complete set of institutions, political
organizations, interest groups, the relationships between
those institutions and the political norms and rules that
govern their functions (constitution, election law).

A political system is composed of the members of a social
organization (group) who are in power.
Libertarian Political System: is an open system, with virtually
complete group autonomy, customary law, and present goals.
Laws are limited to few customary principles and rights, with
the judiciary limited to concrete cases.

Authoritarian Political System: It is closed, with authoritative
positions open to only a few by virtue of birth and based on
customary law. Groups do not try to alter the traditional
status quo.

Totalitarian Political System: It is closed and customary does
not interfere with the elites interests. Law is constructed to
satisfy the elites future oriented goals. Groups have no
autonomy.
Anarchy: complete lack of political system, no rules and the
strongest have power over the weaker.
Dictatorship: one person has absolute power, typically a military and
a bureaucracy in such a nation and typical law to dictate everyday
goings-on, the dictator has complete discretion. Eg, Mussolinis Italy
and Hitlers Germany.
Autocracy: supreme, uncontrolled and unlimited authority and rights
of governing in a single person, as of an autocrat. More based on
cultural history and the autocrat has absolute power.
Oligarchy: rule by a few. Oligarchies are often the evolution of
dictatorships from rule by a single person to rule by a small group
of people. In 1215, King of England was forced by nobles to sign the
magna Carta or SA following the alliance of the English.
Theocracy: an oligarchy based on religion the group is ruled by the
groups spiritual leaders. Islamic states such as Iran, Afghanistan
under Taliban.

Monarchy: near about same as dictatorship diff. is that
dictatorship is used as a derisive term, and monarchy is seen
as much more benign.
In a dictatorship, power is often not transferred at all or to a
hand-picked successor but monarchy have much stricter,
hereditary systems of succession.
Democracy: where people or population rule.
Plutocracy: the ones with the most resources are the ones
who rule. In emerging democracy, where the leaders look to
wealthy citizens for guidance on government affairs.
Aristocracy: the upper class of citizens, however that might
be defined in any one society, holds the power. Heredity, or
rule by right of birth, plays a large role in continuing power.
Stratocracy: is a government, run directly by the military
power, it is commonly known as military dictatorship.

India is a Union of states. The structure of the government is
federal in nature and has 3 wings. The legislature makes laws
for the country; the Executives enforces those laws and
administers the constitution and the Judiciary guarantees
fairness and justice and protects the individual from the
despotism of the government.

The legislative organ of India is the parliament, it consists of
the President, the Lok Sabha and the Rajya Sabha. No new
taxes can be levied or expenditure incurred without its
consent. The parliament can also amend the Constitution of
India.
1. Delegated Legislation: Stimes Parliament delegates some
power to other authorities to make rules, regulations and to
issue notification. These are often required to be published
in the official Gazette.

2. Ordinances: Stimes the need to enact legislation is urgent
and it is not possible to wait for the commencement of
session of Parliament. In such cases, the President has been
empowered to issue an Ordinance, which has the same
validity as the Act of Parliament, except that it is valid only
for a limited period.

Legislature

Union (Parliament)
Lok Sabha (Lower House)
Rajya Sabha (Upper House)
President

State
Legislative Assembly
Legislative Council



1. Legislative Functions
2. Regulatory Functions direct control over the executives,
responsible and answerable to the legislature for all its
actions. Adjournment motion or raise debates to point-out
specific lapses of the government and most imp. it can
move no confidence motion.
3. Financial Powers
4. Deliberative Functions a forum where many persons
represent numerous interest, view of different sections of
the society. Through debate and discussions.
5. Judicial Functions
6. Constitutional Functions
7. Electoral Functions
Union Executive

Central (Union)
President
Prime Minister
COM
Attorney General of India

State
Governor
Chief Minister
State Council of Ministers

1. Run Administration of the country
2. Performing Legislative Functions
3. Performing Judicial Functions
4. Controlling Purse of the Nation
5. Making Decision