Government Intervention
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Govt intervention could put downside pressure on the stock. Possible government intervention increases risk, because the government is a big customer and has a history of making adverse changes to the operating ability of companies in every industry. A government regulated industry increases political risk, because government actions may not be in the best interest of citizen of that particular country. Governments are usually inefficient with spending money.
Regulations are meant to protect the environmental and consumers. They take the form of permits, package, etc. … This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Government Intervention" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.
SWOT Analysis Survey
SWOT Threat: Government Intervention
Govt intervention could put downside pressure on the stock. Possible government intervention increases risk, because the government is a big customer and has a history of making adverse changes to the operating ability of companies in every industry. A government regulated industry increases political risk, because government actions may not be in the best interest of citizen of that particular country. Governments are usually inefficient with spending money.
Regulations are meant to protect the environmental and consumers. They take the form of permits, package, etc.
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