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Powerpoint Presentation about Political Feasibility
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Presentation Title
Environmental Scan
Often, a business will conduct an environmental scan to methodically examine four main areas of the marketplace. The acronym PEST refers to each of the four factors evaluated in the scan:
• Political
• Economic
• Socio-cultural
• Technological
environmental scan
An analysis of outside influences that may have an impact on an organization.
Political
feasibility
Political
Political issues center around government involvement in business operations, such as:
• Laws
• Regulations
Global companies need to know the political structure and regulations of each foreign country in which they conduct business.
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What is political feasibility?
• Political feasibility is a term widely used which we have all heard.
• What does it mean though exactly?
• How can it be assessed, especially in the context of sectoral or technology oriented agreements?
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What is political feasibility?
• Policy proposal being acceptable to all parties such that it can overcome enough resistance to move from the stage of an idea to agreement.
Idea
Agreement
Factors
Constraints
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What is political feasibility?
Idea
Agreement
Factors
Constraints
If we can pinpoint the factors & constraints around a specific proposal we
can understand if it might be politically feasible.
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Influencing Factors
• Actors: Who are the parties involved, what are there motivations, what are their beliefs and what is their bargaining power?
• Resources: What resources materiel or otherwise are involved and can be exchanged or will be needed to reach an agreement?
• Time frame & Timing: What is the time frame for the proposal? Is the proposal being advocated at the right moment?
• Leverage points: Is there anything to make the proposal more attractive?
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Constraints (1)
Economic
• What are the economic resources associated with the proposal?
• What financial obligations associated with accepting the proposal?
• Do the parties have those resources?
Physical & Technical
• Are there any physical/technical barriers?
• Does receiving party have adequate infrastructure?
• Does receiving party have enough technical resources for maintenance of proposal?
What kind of constraints will a TOA or SA encounter and have to overcome?
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Constraints (2)
Legal & Contractual
• Is the institutional (legal & regulatory) infrastructure there to accept proposal?
• Will laws need to be made or changed?
• Would the proposal require regulatory approval?
• Are there prior contractual agreements that could hinder the proposal?
Social & Equity
• Could the proposal be socially controversial?
• Is it socially acceptable?
• Will it be seen as equitable or fair?
• Are the parties being offered enough?
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Constraints (3)Institutional & Governance
• Is the country politically and economically stable?
• Will corruption be an issue?
• Are there any other issues of governance that need to be addressed?
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Political feasibility framework
Constraints Actor 1 Actor 2
Economic
Physical/technical
Legal/contractual
Social/equity
Institutional
Constraints Table
Factors list
1. Factor A
2. Factor B
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Case 4: Car efficiency
Key issues:
•Car companies have resources but will have to make profound change & use of them
•Time frame appears adequate to implement agreement & timing is good
• Leverage points of first mover advantage to capture demand from customers (e.g.
Toyota hybrid cars)
