Political Environment: Political environment consists of factors influenced by government actions. These actions can be internal, national or local, which affect the operations of a business. Political environment includes factors like:
(i) Political ideology, which is a certain set of ideals, principles, doctrines, myths or symbols shared commonly by a group of individuals in a political system.
(ii) Political stability, which is associated with security and safety provided by the government. In a political stable environment, there is certainty and confidence generated by government that ensure consistent supply of financial, human and physical resources with possible investment and expansion opportunities. Factors that may lead to political instability include - communal riots, civil war, state emergency, etc.