During this era, the company focuses on being "green" and ecologically mindful of its products, compelling to be safe from a health and environment perspective. .
2.0 Global Macro Environment.
2.1 Macro Environment Analysis, PEST Analysis.
An analysis of the macro-environment (PEST) is important to identify the factors that might in turn affect a number of variables that are likely to influence IKEA's organization supply and demand levels and its costs. A PEST analysis framework categorizes environmental influences as political, economic, social and technological forces. The result of this analysis can be used to take advantage of opportunities and to design a contingency plan for threats when preparing business and strategic plans. .
2.2 Mexican Politics, Rules and Regulations.
- Politics of Mexico takes place in a framework of a federal presidential representative democratic republic. The Executive power is the dominant branch, and is vested in the president, who is elected directly from votes and serves for six years. The Executive branch also consists of various departments including departments for agriculture, education, and tourism. The Legislative branch is vested in both the government and the two chambers of the Congress of the Union. "The government" as stating to the federal government is the one in charge of passing and enforcing legislation concerning the whole country. Decisions by the federal government affect a huge number of businesses and are consistent across state boundaries. .
- Regulations regarding many commerce practices vary between states. Tax rates differ widely. Laws concerning unionization differ between states. Local governments are likely to affect business practices drastically. Some local governments may be willing to offer incentives to attract business to the area such as provide low-interest bonds to animate a desirable business to transfer into the society.
