Environmental analysis – ACCA Strategic Business Leader (SBL)
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I would say the main reason corporations have head offices in Ireland is due to the low corporation tax over anything.
Working for a Luxembourg practice, in trainings they kept naming funny reasons why Lux is attractive to companies. Corporate law more than 100 years old, demonstrates stability. Diverse workforce. Yeah sure… But also the elephant in the room, taxes!
Tax (an economic influence) affects all sorts of decisions. Lots of unintended consequences too.
Also please can I have a example for this one too.
Legal : Failing to prepare for a new law that will soon bring new regulations into force that the company will have to comply with.
For example:
New food hygiene regulation that could mean some ingredients for some products cannot be used and a substitute has to be found.
Currently, the UK will be requiring car manufacturers to comply with laws that will insist that a growing proportion of car sales will be electric cars.
Hi I don’t understand where it says on the notes,
Political: Ignoring the spending priorities of a new government so that the wrong products or services are offered.
Can you please give me a example of this. I can’t think of any examples.
Potentially, if a right wing government were to be elected then it is likely that it would attempt to reduce government expenditure. That would likely impact on public services such as education and health. If fewer schools are likely to be built (increase class numbers instead) then a company that manages school property might have a harder time.
Similarly, a newly elected government might want to reduce defence expenditure because it has a particular world-outlook. Defence companies might then need to look around for something to keep their revenues up.
PLEASE ASK QUESTIONS ON THE APPROPRIATE ASK ACCA TUTOR FORUM. THAT WAY YOUR QUERIES AND MY REPLIES ARE LIKELY TO BE SEEN BY MORE STUDENTS.
In this Lecture, I didn’t really get the explanations for firm strategy and structure in the diamond. I only understood “rivalry”. Could clearly explain how strategy and structure determine the competitiveness of nations?
I cannot view any of the lectures, can I know what happen?
try another computer/device..
videos work fine
I would argue that what is most attractive about Ireland to companies is its low corporate tax rate.