External Enviroment - Research Paper Example

This paper seeks to explain how big companies can affect the government role as an external environment. The government stipulates policies on how and when companies should remit their taxes. Big companies are key contributors to tax collection and when they remit the tax as per the regulation, the government is able to finance other expenses (Claire 13). This enhances government performance. Big companies are likely to have outlets all over wide region of the sphere and still a wide range of products.

The explanation of this is that the company will have a lot of product transportation from one region to another or even to its scattered customers. Consequently, roads will wear out more often than not hence that government has to keep on replacing the worn out roads. Although this keeps the government on its toes to in making sure that roads are in good state, this affects the government budget negatively as it has to look for finances and may lead to borrowing (Hardgrave 15). A big company like coca cola uses big and heavy commercial trailers to transport product to its outlets, such trailers speed up the wear and tear of a road.

Big organizations are powerful in government during policy formulation and adherence. They have a lot of information from the market which they can use to assist government on decisions. Such advice help the government n make informed decisions (Hardgrave 32). Big companies are likely to carry out activities in more than one country. This shows that it has a big volume of resources and can execute government regulations on product control with ease. For example, if the government passes a bill stipulating that the company should use anew packaging, it becomes easier for bigger companies to pull resources together and act accordingly.

Contrarily, big companies can pull its wide range of resources to challenge legally some of