How does government affect management policies and procedures?

How does government affect management policies and procedures?
1. Government sets the laws and regulations under which the enterprise must function. Management policies must be consistent with legal requirements. Procedures must be designed and tested to assure that they will produce legal results in a legal manner.

2. Government builds many aspects of infrastructure which the enterprise may benefit from using. Some of this is physical (roads, airports, waterways, ports, etc.) Other parts include a courts system, patent protection, assistance in exporting goods, incentives to hire people).

3. Governments tax. Management must consider the tax impacts of alternative policies and practices. Incentives and penalties can be significantly different depending on what directionbs management selects.

4. Governments are customers. Special policies and processes may be required to be competitive is serving governments as your potential customer.