Convenience

technological
dimension
The methods
available for
converting resources
into products or
services
Chapter 2:
The Environments of Organizations and Managers
3 7
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and Twitter to hardware like smartphones and the iPad, are also influencing businesses
in many different ways.
The Political–Legal Dimension
The
political–legal dimension
of the general
environment consists of government regulation of business and the relationship between
business and government. This dimension is important for three basic reasons. First, the
legal system partially defines what an organization can and cannot do. Although the
United States is basically a free-market economy, major regulation of business activity
still exits. McDonald’s, for example, is subject to a variety of political and legal forces,
including food preparation standards and local zoning requirements.
Second, pro- or anti-business sentiment in government influences business activity.
For example, during periods of pro-business sentiment, firms find it easier to compete
and have fewer concerns about antitrust issues. On the other hand, during a period of
anti-business sentiment, firms may find their competitive strategies more restricted and
have fewer opportunities for mergers and acquisitions because of antitrust concerns.
During the prolonged period of economic growth that ended in 2008, the U.S. govern-
ment adopted a very “hands-off” approach to business, letting market forces determine
business successes and failures. However, as the economy ground to a halt in 2008, and