GOVERNMENT REGULATIONS:

 

In Colombia the law 84 which adopts the national status of animal protection and create contravention and regulates everything regarding their procedures and responsibilities. The promulgation of this law guarantee that animals have protection against all kind of suffering and pain caused indirectly and directly by humans. They want to promote health and wellness assuring hygiene, sanity and all the appropriated conditions.

For our industry, this law establish by the government as a regulation that will help promote the animal protection, which includes promoting their health assuring all companies hygiene for the care of pets and all the appropriated hat are needed for the care of pets in this industry.

 

http://www.alcaldiabogota.gov.co/sisjur/normas/Norma1.jsp?i=8242

 

CHANGES IN TAX LAWS:

 

The implementation of wealth tax in 2015 until 2018, will be charge to juridical and natural people, whose total assets are equal or more than 1.000 million pesos.

The industry will be punished because this tax penalizes the accumulation of wealth and savings. This will demotivate investments and will deprive all industries to develop.

 

http://www.comunidadcontable.com/BancoConocimiento/N/noti_20141224_nueva_reforma_tributaria_ley_1739_del_2014/noti_20141224_nueva_reforma_tributaria_ley_1739_del_2014.asp

 

http://www.portafolio.co/economia/impuestos-2015-colombia

 

SPECIAL TARIFFS:

 

In Colombia exists special tariff for paying taxes, it rely on the company economic activity and it size. There is a special tariff for the IVA of 16% that is applicable to goods and services.

 

This will help reduce the costs and will help develop more the industry

 

POLITICAL ACTION COMMITTEES:

 

In Colombia the national status of animal protection is the political committee in charge of the regulation and the implementation of policies for the animal care and the security of animals. Controlling and preventing the violations and cause of pain of animals. They also promote the wealth of animals by guaranteeing the hygiene and all the other conditions necessary in any business to maintain animals in stable conditions.

 

For our industry this political committee is very important because it will prevent the animal’s death and there will be more pets to attend and take care.

 

http://www.alcaldiabogota.gov.co/sisjur/normas/Norma1.jsp?i=8242

 

NUMBER, SEVERITY, AND LOCATION OF GOVERNMENT PROTESTS:

 

According to an article published by “El Espectador” in March 13 of 2015, there has been 283 protest so far for this 2015. There has been 3 important protest this year which are: the Indians in the Cauca’s department, students of the San Martin University, the trucker strike and the taxis against Uber’s Company. Also, according to ELMUNDO.COM these 283 protests have taken place in 27 of the 32 Colombian departments.  In the article is stated that Bogotá has been the city where the majority of protest have taken place. This can affect our industry directly since our company will begin operating in the capital and these protests affects everyone in such ways that people can stop working, products can stop coming from other departments if there´s a trucker strike and so on.

 

(ELESPECTADOR.March13, 2015.http://www.elespectador.com/noticias/nacional/el-ano-se-han-presentado-283-protestas-articulo-549376)

 

(ELMUNDO.COM.March14,2015.http://www.elmundo.com/portal/noticias/derechos_humanos/283_protestas_sociales_se_han_presentado_en_el_pais_durante_este_2015_segun_reportes_de_la_defensoria.php#.VdZ-45f3ZWA)

 

NUMBER OF PATENTS:

 

According to an article published by “EL TIEMPO” in February 2 of 2015, in 2014 the approval of patents decrease a 29.8% comparing to 2012, to be more specific there were 1.170 approvals of 2.087 in the whole year. This data was taken from the results shown by “Superintendencia de industria y comercio” (EL TIEMPO, 2015. http://www.eltiempo.com/economia/sectores/patentes-en-colombia-hubo-reduccion-de-patentes-en-2014/15186223).

 

The graphs shown by “Superintendencia de Industria de Comercio” about the history of invention patents is:

 

 

 

 

 

 

 

 

 

 

 

There´s also a graph for utility models patents:

 

 

 

 

 

 

 

 

 

 

 

Graphs source: Superintendencia Industria y Comercio. Banco de Patentes. http://www.sic.gov.co/drupal/recursos_user/estadisticas/presentadas%20concedidas/web/StatTrends_offline_IE_security_bypass.html

 

This variable can affect our industry since if our organization in some time make an exclusive and unique object which provides technical solutions for the community, we need to be aware of all the law and procedures we need to do. Also, as approvals of patents increases in Colombia, the country will increase its economy as companies can become more diversify and global competitive. This can affect the industry since the high quality of competition can increase so Doggy Buddy will have to find ways to compete.

 

CHANGES IN PATENT LAWS:

 

Since December 1 of 2000, when Colombia enter the “Comisión de la Comunidad Andina” and began working the Decision 486 of 2000, the patent´s register were not only protected in Colombia but foreign too. This decision replace the Decision 344. Also, this new decision made the patent process more dependable for investors and inventors, this process became more agile, it stablished in the patent more details than before and tries to eliminate the unfair competition. The Decision 486 of 2000 adds to the process some details from the ADPIC (Acuerdo sobre los Aspectos de los Derechos de Propiedad Intelectual relacionados con el Comercio de la OMC), such as the national treatment (article 1), the most favorable nation (article 2), observance in frontier to avoid piracy. It is important to add that the countries in Comunidad Andina were Colombian patents are “safe” are:   Bolivia, Colombia, Ecuador and Perú.

 

(COMUNIDADANDINA.http://www.comunidadandina.org/Seccion.aspx?id=83&tipo=TE&title=propiedad-intelectual)

 

This variable affect our industry in the sense that every industry must be aware of laws changes because when the company will need to patent a product we invented we must be aware of what, how to do it. This could happen as the company grows and the need for diversification and increase the competitiveness is needed.

 

ENVIRONMENTAL PROTECTION LAWS:

 

Colombia is part of the “Organization of American States”, where in 1993 they stated a law for the environmental protection. This was the “law 99 of 1993” where by articles all the environmental general principles are stated. In this law is stated that the country´s biodiversity must be used and preserved sustainably using economic instruments by the government. Also, is created the “Ministerio del Medio Ambiente” and its objective to have s regulator in charge of the environment´s wellness and they need to work together with the SINA (Sistema Nacional Ambiental). The regional corporations must follow some rules to operate in the country which affect our industry since we must follow this functions since the beginning and be aware if there´s any change. As every company of every industry, as stated in this law, we will be penalized if our company is hurting the environment so we need to make a good use of the natural resources.

 

(OAS. Organization of American States. http://www.oas.org/dsd/EnvironmentLaw/Serviciosambientales/Colombia/Ley99de1993demedioambienteColombia.pdf) 

 

LEVEL OF DEFENSE EN EXPENDITURES:

 

The level of defense expenditures includes the money the government provides to the national forces, current expenses, expenses in the peace procedures, capital for the ministry defense, expenses in military activities, and expenses in retirements of the military personnel, research information for defense activities, between others, depending on the defense situation of each country. The graphic demonstrated ahead in the military expenses which represents the defense expenditures is according to the GDP of the country. As we can see, military expenses as a percentage of the GDP was decreasing until the 2011 and it has been increasing until the 2014:

 

 

 

 

 

 

 

 

 

 

Graphic and information extracted from: (EL BANCO MUNDIAL. http://datos.bancomundial.org/indicador/MS.MIL.XPND.GD.ZS/countries/CO?display=default).

 

This variable affect our industry in the way that if this expenditures increases that means the government will have to pay more money for defense, the companies and population will have to pay more taxes and that means and increase in the expenses of each company so less profits. Also, if the government is spending more money in defense, the country will be expected to be safer so our company will benefit since the streets will be safer for our dog walkers.  

 

LEGISLATION ON EQUAL EMPLOYMENT:

 

Colombia’s ministry of labor has created an especial group together with the minister, which purpose is to have different views toward a multicultural political achievement around the theme of labor. Its main goal is to recognize and achieve that al work for Colombians must be decent, of quality and worthy.

 

Articles 13 and 53 from Colombia’s Political Constitution, prohibit discrimination at workplace, among some parts from the Colombian Labor Code. In this document, article 10, states explicitly that all employees must be provided with same legal rights. In Colombia, discrimination in labor includes not hiring or not provide equal terms to an employee based on classification in:

 

• Gender

• Sexual orientation

• Race

• National and family origin

• Language

• Religion

• Political or philosophical opinion

• Military status

• Disability

 

This is information is key to the industry, because every single organization must recognize the work environment they have, avoiding every single activity of discrimination first because it is an unethical way to behave, and secondly because by law it is forbidden and if it continues it can be punished by the government. Companies must seek to have a workplace where people are deeply accepted by who they are in all ways, and not discriminated because of any of the factors presented above.

 

Caldwell, A. K. (2015, June 8). Employment Law in Colombia: Part II. Retrieved August 20, 2015, from Cross Border Employer: http://www.crossborderemployer.com/post/2015/06/08/Employment-Law-in-Colombia-Part-II.aspx

 

Ministerio de Trabajo. (2014, January 26). Grupo de Equidad Laboral. Retrieved August 20, 2015, from MinTrabajo: http://www.mintrabajo.gov.co/equidad.html

 

 

LEVEL OF GOVERNMENT SUBSIDIES:

 

 

 

 

 

 

 

 

 

 

 

Based on information from the data base from the International Monetary Fund, the graph above represents the amount of subsidies de Colombian government has given to private and public enterprises during the years. As we see the tendency has always be positive and growing (only an exception in 2011), where it is evident to notice that for 2012 the increase was very high. By this graph it can be assumed that the Colombian government has decided to give more subsides in order for enterprises to grow and have more options to succeed in a competitive industry.

 

This reflects the importance that the government give to donate opportunities to entrepreneurs and works by motivating them with a subsidy. In the industry it is highly important because new companies or those who need some kind of financial aid will have the benefit from the government and the opportunity to do not be stocked, but to succeed.

 

Colombia - Subsidies and other transfers. (14 de July de 2015). Recuperado el 20 de August de 2015, de Index Mundi: http://www.indexmundi.com/facts/colombia/subsidies-and-other-transfers

 

ANTITRUST LEGISLATION:

 

Colombia is a country that under its own Constitution and some acts, have clear the idea of antitrust and how the market should be more competitive and not dominant. Articles 333 and 334 from the Political Constitution of 1991 are the ones that incorporate the information about the position of the government to antitrust legislation. It is written:

 

“The State, due to law, will prevent the obstruction or restriction of economic freedom and will prevent or control people or companies that make use of their dominant position in the national market.”

 

Additionally, orders of law nº2153, nº1302 and law 155/59, also refer to the manners and responses from the government in cases of dominants who take advantage or monopolies.

 

This is important not in one, but in every industry because it warns every organization about what will happen if they start to take advantage of their power in a high and dominant position. If this is the case, it would be seen as a broken law, which will have punishments. Everyone must be conscious about this legislation.

 

LEGISLACIÓN NACIONAL SOBRE POLÍTICA DE COMPETENCIA. (15 de Mars de 2001). Recuperado el 20 de August de 2015, de SICE: http://www.sice.oas.org/compol/natlegs.asp

 

Política de Competencia. Legislación Nacional-Colombia. Constitución Política 1991 con reforma 1997. (1 de February de 2001). Recuperado el 20 de August de 2015, de SICE: http://www.sice.oas.org/compol/natleg/Colombia/333.asp

 

TREATIES AND ALLIANCES:

 

Colombia has different types of relations with countries, but the most formal ones are those who have a signed treaty or what is recognized as an alliance. Here it is presented the agreements in force:

 

• EFTA: This alliance came into being in 2011 with countries such as Switzerland, Norway, Island and Liechtenstein. For Colombia is important in because it enforced the exports to this countries which have more power, it expands investments from these countries and also it looks forward to strengthen economic ties and cooperation.

 

• Treaties with Canada, United States of America, Nicaragua and Cuba: these treaties started in 2010 (Canada), 2011 (USA), 1980 (Nicaragua) and 2001 (Cuba). Basically all this treaties purposes are to promote a better environment for commerce, both imports and exports for both countries. This will led to a better development of each country and a mutual help that can benefit both parts. Each country provides different kinds of services and products that Colombia’s organizations might use to increase competitive advantage.

 

• Treaty with the European Union: This is one of the most recent treaties, by starting in 2013. Having an alliance with the European Union helps a lot in terms of connection, investment and commerce. There are many countries within the European Union that can benefit our country by investing in it and importing our products. On the other hand, Colombia can import new technology and advanced products that will help to the growth and development of different sectors in our country.

 

• TLC COLOMBIA-MEXICO: this treaty start in 1994 this treaty has brought to Colombia many benefits because the agreements between the countries are agreements for the taxes that it would bring to imports and export agriculture and also to the automotive. It included a significant opening of markets for goods and services and set clear and transparent rules on trade and investment, contemplating a program of relief for most of the tariff over a period of 10 years, excluding the majority of the agricultural sector.

 

• Treaties with Chile, el Salvador, Guatemala and Honduras: Colombia and the countries of the Northern Triangle of Central America (El Salvador, Guatemala and Honduras) started negotiations for signing a free trade agreement that allows them to four countries to improve the conditions of access to their markets, leverage their complementarities economies and promote mutual investments, in order to achieve higher levels of development that benefit the population. Colombia's trade relations with Guatemala, El Salvador and Honduras have been framed in partial scope agreements signed in 1984 within the framework of ALADI. These agreements cover a small number of products with fixed tariff preferences. Colombia and Chile have signed the following agreements: the Economic Complementation Agreement No. 24, the Free Trade Agreement and the Agreement for the Promotion and Reciprocal Protection of Investments. The Free Trade Agreement between the Governments of the Republic of Colombia and the Republic of Chile signed on November 27, 2006 and entered into force on May 8, 2009.

 

• CAN: The Cartagena Agreement, which gave birth to the Andean Group began to take shape in 1966 with the Declaration of Bogotá and became effective on October 16, 1969 when the Standing Committee of LAFTA obtained the official endorsement of the Government of Peru, after that of the governments of Colombia and Chile. In November 1969, Ecuador and Bolivia ratified and Venezuela acceded in 1973. Chile withdrew in 1976. The Agreement has undergone several changes of great significance for the Andean integration process, highlighting among others, performed by the Trujillo Protocol, signed by the Andean Presidents during the Eighth Presidential Council in the Trujillo, Peru in March 1996 Protocol which creates the Andean Community.

 

• CARICOM: The current conditions of preferential market access for CARICOM are framed in the Partial Agreement (APP) No. 31 on Trade, Economic and Technical Cooperation signed in the framework of Article 25 of the ALADI (Latin American Integration Association), which is signed in the city of Cartagena de Indias on 24 July 1994. Its main objectives are to promote and expand trade and investments’, facilitating the creation of regional joint ventures, develops economic cooperation activities and promote exchange activities between the private sectors region of. In furtherance of that agreement was signed on May 21, 1998 a First Protocol amending the rules of origin and includes for the first time products with tariff preferences for Colombia of immediate effect from 1 June 1998 and gradual (25 % each year) starting the first 25% from 1 January 1999. 

 

• MERCOSUR: The Economic Complementation Agreement No. 59 (ACE 59) represents an opportunity for Colombia access to a potential market of close to 250 million people with a GDP of US $ 2.816 billion, which allows a demand for products imported nearly US $ 260 billion. Domestic productions has obtained preferential access to one of the largest markets in the continent, obtaining supplies, raw materials and cheaper capital goods, allowing lower production costs and enhance our competitiveness. With this Agreement, an FTA was formed through a trade liberalization program, which applies to products originating in and coming from the territories of the Signatory Parties (aside Colombia Ecuador and Venezuela, and other products Argentina, Brazil, Paraguay and Uruguay). This program is progressive and automatic, on current tariffs applicable to imports from third countries in each Signatory Party bilateral concessions.

 

Acuerdos Vigentes. (2015, August 13). Retrieved August 20, 2015, from MinComercio, Industria y Turismo: http://www.tlc.gov.co/publicaciones.php?id=5398

 

GOVERNMENT FISCAL AND MONETARY POLICY CHANGES:

 

Fiscal policy is "the policy followed by the public sector on its decisions on spending, taxes and borrowing" This policy aims to facilitate and encourage the good performance of the national economy to achieve acceptable or outstanding levels of growth, inflation and unemployment, among other variables. It also seeks to avoid fluctuations in the economy. Fiscal policies in Colombia are stable and generate reassurance to investors, which added to the good image that crosses the country, making Colombia an attractive place for investors to bring their money. Additionally, economic incentives in taxation for new investors or existing investors of items such as software, hotel, cinema, generate a plus to ensure that foreign investment continues to pour into the country. In fact according to GP Morgan Colombia is the fifth country in the world to protect foreign investment.

 

BANCO DE LA REPÚBLICA. (2013). Recuperado el 20 de agosto de 2015, de BANCO CENTRAL DE COLOMBIA: http://www.banrep.gov.co/es/politica/monetaria

 

POLITICAL CONDITIONS IN FOREIGN COUNTRIES:

 

The near Colombia political issues are currently taking place in the country of Venezuela, since they are going through a major economic and political crisis framed by lower international oil prices which represents 90% of tax revenue for the country, shortages of the main products of basic goods, inflation of 69%. The political crisis influenced by the persecution that is subjected opposition, where two of its top leaders are currently imprisoned without clear legal guarantees for their processes.

 

Universidad ICESI. (n.d.). Retrieved august 20 , 2015, from CONSULTORIO DE COMERCIO EXTERIOR: http://www.icesi.edu.co/blogs/icecomex/2008/111/14/56/

 

IMPORT-EXPORT REGULATIONS:

 

Import: for import factors into the country every Company needs to follow the next 12 steps:

 

1. Market and feasibility of import: To determine the country where you are performing an import, you need to make a shortlist, where qualitative and quantitative aspects that allow a first approach to potential markets are analyzed first. Subsequently, a market is selected and begins development of a study.

 

2. Registration with the Chamber of Commerce and obtaining the NIT: A natural or legal person who needs to register with the Chamber of Commerce should consider the following steps:

- Consultation Name.

- Consultation Economic Activity Classification - ISIC Code.

- Consultation -Department use of floor Administrative District Planning.

- Processing by the DIAN.

 

3. Registration in the registro unico tributario (RUT): The RUT is the only one to identify, locate and classify persons and entities having the status of taxpayers reporting income tax payers not reporting income and wealth mechanism; those responsible for the common system and those belonging to the simplified scheme; the withholding agents; importers, exporters and other customs users, and other subjects of obligations administered by DIAN.

 

4. Application of international prices: The application is the process by which the seller sends a document to the purchaser abroad, where the price of the products ordered, with all expenses included required to bring the goods to the delivery point previously agreed between the two parties.

 

5. Application for import permits

 

6. Freight Negotiation: Making an import involves a significant investment in many ways. Not only must consider the cost of goods but also the expenses incurred to put in the particular place, in perfect condition and at the right time.

 

7. Obtaining insurance: international trade in goods often secure for damages that may occur during transport and in loading and unloading operations and stays in storage, pre- or post-transport.

 

8. Acceptance of contributions and the establishment of means of payment

 

9. Embarkation and arrival of the goods

 

10. Arrival to deposit or free zone

 

11. Nationalization of the goods: The nationalization procedures leading to the withdrawal of importer Merchandise deposit, to dispose of it. Once established as a result of the inspection full compliance with the requirements of the information provided in the declaration and the correct assessment of customs duties.

 

12. Legalization of transfer abroad: Imports may be financed by the supplier of the goods, the exchange market intermediaries and foreign financial institutions under the terms of the transaction.

 

Export: for export factor every company needs to follow the next 16 steps

 

• Market research and location of demand: To determine the country to which you are exporting, you need to make a preselection, where qualitative and quantitative aspects that allow a first approach to potential markets are analyzed first. Subsequently, a market is selected and begins development of a study.

 

• Registration with the Chamber of Commerce and obtaining the NIT

 

• Registration in the registro unico tributario (RUT)

 

• Costing: One of the most important elements in international competitiveness is the export price, to respond to customer requirements at market prices and financial objectives and marketing of the exporter.

 

• Request international prices

 

• Acceptance of contributions and the establishment of means of payment

 

• Preparation of the product to be exported: As important as selling products abroad, is to know how must be packaged. And it is no wonder, if one considers that during the process of distributing and marketing the product is subject to risks such as decreased or gain volume change or loss of color, varying density, hydration or dehydration, weight loss due to moisture decrease and deterioration in texture and appearance.

 

• Hiring of transport and insurance: Transport, one of the main links of the supply chain is what determines how and when the products are received at the hands of buyers. Because of this, the hiring of transport and takes on a major role in the international operation.

 

• Referral of the bill and confirmation of the letter of credit if necessary

 

• Request for export permits and clearances

 

• Procedures Ministry of Commerce, Industry and Tourism: An important step for the exporter succeed in selling their products and benefit from tariff preferences currently enjoyed by the country, is the documentary evidence of their origin and national production.

 

• Export processing of the document, DEX, by the SIA or authorized declarant.

 

• Authorization and clearance of goods: The final export is the mode that regulates the output of national or nationalized merchandise from the national customs territory for final use or consumption in another country. It is also considered permanent export, the output of domestic goods or nationalized from the rest of the national customs territory to a free zone.

 

• Receipt of payment for the goods

 

• Service of the statement of change and sale of foreign currency exchange broker (refund of currencies) Exporters should be channeled through the exchange market, the revenues from shipments within six (6) months following the date of receipt, corresponding to both exports and realized and those received as advance payment for future orders of goods.

 

• Refund application IVA : If you export a good in which he used raw and input materials acquired in Colombia, you can ask the Directorate of National Taxes and Customs (DIAN) refund of taxes you paid.

 

Legiscomex. (2015, agosto 20). Retrieved from http://www.legiscomex.com.ezproxy.unisabana.edu.co/BancoConocimiento/C/Col_procesoexpo_new/Col_procesoexpo_new.asp?DivMenu=Menu2&DivSubMenu=Menu2

    

SPECIAL LOCAL, STATE, AND FEDERAL LAWS:

 

Laws are a huge system of rules that all individuals must follow in order to govern behavior from all the people in a country. That’s why this is a factor that could affect or benefit our industry depending on the specific laws that our business has to follow. We as an organization have to analyze and examine the local laws in order to know what we can make or if we have to abandon some of our strategies or objectives depending if the laws allows it or not.

According to law 84 of 1989 the organization must follow all the articles in order to give protection against pain and suffering to animals caused by humans. This is way or company has to follow all these important points to promote the best life quality for our animals in our organization.

 

 

 

 

 

 

 

 

 

 

 

HURTADO, L. G. (27 de diciembre de 1989). alcaldia de Bogota. Recuperado el 20 de agosto de 2015, de LEY 84 DE 1989: http://www.alcaldiabogota.gov.co/sisjur/normas/Norma1.jsp?i=8242

 

LOBBYING ACTIVITIES:

 

Lobbying is the activity which its principal aims is to promote, represent or defend any legitimate interest of individuals or organizations in connection with any decision that the public authorities have to take.  For example:

 

“If I meet a mayor to give my point of view, or the one of the organization I represent, on the regulatory plan to be adopted ➜ I am lobbying.”  (org)

 

In the case of many industries lobbying is a favorable aspect, as any person can perform lobbying activities by only express their personal views, complains or ideas of their company to an authority or official to attempt to influence in a public decision. In the case of our organization having a person who realizes lobbying will favor us, because our representative will always try to change any restlessness we have in order to modify the public decision for the benefit of both. 

 

org, c. i. (s.f.). LEY DEL LOBBY. Recuperado el 20 de agosto de 2015, de http://leydelobby.cl/preguntas-frecuentes.html

 

VEGA, W. P. (26 de AGOSTO de 2010 ). El universal . Recuperado el 20 de AGOSTO de 2015, de Regulación del “lobby” en Colombia: http://www.eluniversal.com.co/opinion/columnas/regulacion-del-%E2%80%9Clobby%E2%80%9D-en-colombia

 

SIZE OF GOVERNMENT BUDGETS:

 

Revenues: $114.1 billion

Expenditures: $120.2 billion (2014 est.)

 

Colombia recorded a Government Budget deficit equal to 2.40 percent of the country's Gross Domestic Product in 2014. Government Budget in Colombia averaged -3.63 percent of GDP from 2001 until 2014, reaching an all-time high of 0.23 percent of GDP in 2005 and a record low of -8.47 percent of GDP in 2004. (ECONOMICS)

 

 

 

 

 

 

 

 

 

 

ECONOMICS, T. (s.f.). TRADING ECONOMICS. Obtenido de Colombia Government Budget : http://www.tradingeconomics.com/colombia/government-budget

 

WORLD OIL, CURRENCY, AND LABOR MARKETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The world oil price is going down and basing this analysis on some Colombian studies this is a big problem to the outlook for Colombian industries because in this moment almost all industries are being affected by different ways because of the low prices, this means they will not only have to reduce costs but also the will have to be very selective in their investment.

 

In our case the organization is not selling any product as it is a company that offers an excellent service for dogs but we as a company buy many products from factories which are specialized in dogs stuff like some materials or equipment for taking care of the dogs and giving them the best care possible. Taking into account this information we as a business have to be very selective in our investment as product prices are going up.

 

DOLARWEB.COM. (20 de AGOSTO de 2015). DOLAR WEB. Recuperado el 20 de AGOSOT de 2015, de Precio del Barril de Petróleo: http://dolar.wilkinsonpc.com.co/petroleo-wti.html

 

RCN, N. (28 de NOVIEMBRE de 2014). NOTICIAS RCN . Recuperado el 20 de AGOSOT de 2015, de ¿Cómo afecta al país la caída del precio del petróleo?: http://www.noticiasrcn.com/nacional-economia/afecta-al-pais-caida-del-precio-del-petroleo

 

LOCATION AND SEVERITY OF TERRIORIST ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Some of the most dangerous and terrorist zones in Colombia are: Antioquia, Cauca, Caquetá, Nariño, Valle del Cauca, Norte de Santander, Arauca, Putumayo and Meta. These areas are called “Zonas Rojas” because the guerrilla is locate all around these regions and could be very dangerous and risky places for individuals. Even though Bogotá is not part of the “ Zona Roja” it is also known that it is an area of high incidence violence in which can occur some kidnapping acts, extortion or attacks to the private property due to its high insecurity level.

This could affect our industry as our business is located a dangerous and risky city in which many evil acts can occur. So many cash will be invested in security and this will be a negative factor as we are a small medium business that is only starting its market opening and it doesn’t have enough capital.

 

Orjuela, D. B. (22 de JULIO de 2013). KIENYKE. Recuperado el 20 de AGOSOT de 2015, de ¿Cuáles son las zonas ‘rojas’ por violencia en Colombia?: http://www.kienyke.com/politica/las-zonas-de-mas-violencia-en-colombia/

 

LOCAL, STATE, AND NATIONAL ELECTIONS:

 

Elections in Colombia are controlled by the National Electoral Council. In Colombia the citizens votes or elects a head of state (the president) and a legislature and both are elected for a four year term. The congress has two principal chambers “the representative chamber” and the “senate of the republic” and both are elected by popular choice.

 

The people decide who they want their head of state to be in order to govern their country and by choosing the correct one the whole country will change in a better o bad way. That’s why many industries get affected by this variable as it is an ambiguity in which organizations doesn’t know if that decision will benefit them or not and they will only know as time passes. It could affect organizations as rules, laws, policies and regulations changed and could bring serious problems because there will be some laws that doesn’t help the business to reach success.

 

ANALYSIS/CONCLUSIONS:

 

Any new organization or existing one has to take into consideration very deeply political variables in terms that these forces might determine in many ways how they can perform inside the industry. Even more important when firms are thinking in an international way, because each country has specific laws and regulations that can affect what the organization wants to do.

 

Colombia is a country that on the last year has allow and has increased the number of subsidies, so that it can help to new and micro enterprises grown and stablish in a new kind of industry. However, each new potential organization has to take into account their responsibility as being part of the market and what they must obey to remain without any problem.

 

On the other hand, Colombia has been a country with unstable political decisions, meaning that every time there are new laws and regulation that can affect anything inside an industry, so organizations must be aware of repent changes and how much flexibles they must be for any alternative made by the government. There are not that much taxes as compared to other countries, but it is highly important to recognize what our duties are and what the interactions will be inside the industry and with the government we are surrounded by.

 

Political forces, has said previously, determine how a company can outperform in the industry by putting different limits and manner to work out. Many governments worldwide are under pressure about different decisions such as protection jobs at home or maintaining nation’s industrial base; but however the importance to thee variables must be given in the actual present and what really is happening right now in the respective country, so each organization know what decisions to make according to what is happening in terms to regulation and other governmental matters.