In every business the political arena is a key determinant of firm future, this is because the firm can either continue to invest in the country or withdraw if there’s political environment. Politics of a certain region affect the producers of a certain product. In our case, though Kenya has had a peaceful business environment for the past decades, there are some regions which had tribal clashes and this affected the operations of the company. Tribal clashes in the rift valley province made the production cost of the firm to rise so high were it not for the company’s big capital base than the company could have ceased its operations. There was a rise in the wage rates, cost of transportation doubled and security had to be beefed which all came along with costs. Political environment affects the operation of the firms in all the developing countries, Kenya being one of them, during the year of an election. This is because due to the high poverty rate, a lot of funds are distributed to the poor citizen who are casual workers in many firms, this diverts their attention thereby making the production cost to be very high.
The company does export its products to the United Kingdom where the political environment has been very conducive for it to market its customers; political environment affects the effectiveness of a business marketing strategy such as promotion, pricing, product cycle and where to place its products in the market.
The economic environment of a business affects the marketing strategy and product mix.