Learn how to do External Analysis of a company (with examples)

Marketing Management Course
AllAssignmentHelp Academy
  • 33 lessons
  • 10 quizzes
  • 10 week duration

7.3 Legal analysis examples

AllAssignmentHelp Academy

Let us continue our example of Robert’s smartphone business. As we know by now that Robert has interest in entering Indian subcontinent to sell his smartphone. We have already analyzed India using previous PESTEL factors. In this lesson we will look at few of the key legal areas that are directly related to the smartphone business operation. Given below are the few legal factors from India that will be of some interest to the Robert’s business:

Consumer Law

There are some key consumer laws that are expected by the companies operating in India to abide by them. It is expected by the companies that they will protect the customers from hazardous goods and services, and provide accurate information about performance and quality of goods and services. The customers have right to complete consumer education, free choice of goods and services, and redressal if any consumer rights have been infringed. In addition to these, the companies should not provide products that are defective or have deficiencies. The companies should not engage in unfair or restrictive trade practices. They should also not charge beyond the price mentioned on the products or agreed with the customers.

Corporate Tax Law

The companies who is willing to operate in India will be subject to the taxation rules as agreed between the home country and Indian government. Moreover, the Government of India has implemented Goods and Services Tax. The foreign companies that operate in India has to register for GST. The government has to file GSTR-5 through online portal. The details in this GST file includes outward and inward supplies. This needs to file every month before 20th.

Employment Law

The government of India has implemented several aspects within the employment law that are expected by the companies to follow. Given below are some of the acts that should be considered before setting foot in the country:

  • Factories Act, 1948
  • Shops & Establishment Acts
  • Contract Labor Act, 1970
  • Industrial Employment Standing Order Act, 1946
  • Building and other construction workers Act, 1996
  • Industrial Disputes Act, 1947
  • Trade Unions act, 1926
  • Payment of Wages Ac, 1936
  • Minimum Wages Act, 1948
  • Payment of Bonus Act, 1965
  • Equal Remuneration Act, 1976
  • Payment of Gratuity Act, 1972
  • Workmen’s Compensation Act, 1923
  • Employees Provident Fund and Miscellaneous Provisions Act, 1952
  • Employees’ State Insurance Act, 1948

Health and Safety Law

The health and safety law of India also contains several rules and regulations that are expected by the company to follow such as duty of the company to protect employee from harmful working locations, and others.

Environmental Law

We have already studied about the environmental laws that are required to be assessed if an organization is willing to enter into country. India also has some of the environmental laws that should be followed such as Water Pollution Act, Air Pollution Act, Forest Conservation Act, relating to Wildlife Protection, and others.

You can see there are several laws and their sub-laws that Robert has to follow in order to operate in India. If you are familiar with the laws of your own country, you can see that all these laws are in line to the betterment of the society and any company in general should follow these. So, we assume that Robert should get into the country if he is willing to follow these laws.