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14 pages/≈3850 words
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Harvard
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Mathematics & Economics
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Essay
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English (U.S.)
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Topic:
Industrial Economics And International Development
Essay Instructions:
The assessment is required to relate the strategy and operation of an enterprise to relevant
models and frameworks studied in the module.please do not exceed 4000 words and references should included the reading materials that i have uploaded
Focus of the Assessment
Examine and critically appraise the nature of all or some of the operation strategies of a
company of your choice. large
diversified or vertically integrated companies it may be necessary to focus on certain
aspects of the company’s business. In broad terms you should consider the following:
• The sectors and the business environment in which the company operates.
• Whether and why it engages in any merger and acquisition with/by other enterprises
(or why it chooses not to do so, if appropriate).
• The company’s strengths and weaknesses in its operations, and likely future strategies
and prospects.
Sources and References
The electronic databases in the library and material from the companies are the most likely
sources of information. It is probably best to avoid ‘obscure’ companies for obvious
reasons.
The evidence in your company study should relate clearly to the relevant theoretical models
and frameworks studied in the module.
Essay Sample Content Preview:
Industrial Economics And International Development
Introduction
There exist numerous economic literature in which rights are considered as a means of providing solutions to technical aspects of the economy. In this case, governments should have the ability of freeing their citizens from poverty and also the poor having the ability to hold the suppliers of their needs within private and public domain accountable. Technical solutions work in an environment where economic rights exist that allows people to utilize their land or businesses. The government suppliers can be held accountable through political processes such as democratic elections. The existence of rights for citizens within a society results into technical solutions that eventually ensure development.
The market definition can easily be informed through different perspectives that include competitive effects. For instance, the aspect of reduction in the percentage of significant rivals that offers certain products and services determines the pricing mechanism that ensures the existence of relevant market to such products. In the same way, such effects also help in the direct prediction of the competitive effects of joint ventures. The nature of market definition aspects focuses majorly on factors that influence demand substitution. This includes consumer’s ability and willingness to change products owing to price differences and change in product quality including responsiveness from the suppliers. There are always numerous possible substitutes for products and services that are subject to scrutiny from customers due to merger. However, there is always the possibility of customers assessing in different manners the proximity of different products. This happens in scenarios where the products and suppliers within different regions act as perfect substitutes for one another to varying degrees. For instance, the idea of defining the market based on inclusion and exclusion of substitutes is a more simplified process incapable of defining the variations of products within the market fully.
Comparably, a broad market definition that encompasses product, as well as geographic substitutes, usually leads to misleading market shares. The market shares of different products within markets that have narrow definitions have a higher probability of capturing relative competitive nature, therefore, reflecting accurate competition between substitutes. Due to such occurrences, the antitrust markets that are properly defined tend to exclude the substitutes that offer an alternative option to customers in case of price increase. International agencies are known to utilize such principles that concern market definition in the process of evaluating appropriate market niches. The area of competitiveness that is affected by the merger may be geographically defined through boundaries for the purposes of accommodating consumers’ ability on substitute products and also suppliers ability to offer services to specific customers. Market definition principles as previously discussed in this study is applicable by Agencies in demarcating relevant market from either geographic or product dimensions.
The scope with which geographic markets are defined is largely dependent on the cost of transportation. However, there are other factors that tend to inhibit international trade amongst companies such as tariff and non-tariff trade barriers, language, regulations, reputation as well as the availability of services. At the same time, it is easier to evaluate the competitive significance of firms on the international platform through the use of fluctuations in exchange rates. In the case where price discrimination is absent on the basis of customer location, usually, the Agencies tend to utilize location of suppliers as a means of defining geographic markets.
Geographic markets Defined from Supplier Locations
This entails the region where sales are made as defined by geographical boundaries. Such is possible in the scenario where customers receive services or products at the designated supplier locations. In this scenario, competitor presents companies with products and services that are relevant in the designed market. However, the suppliers are at times bound to receive customers outside the designed boundaries of the geographic market. Alternatively, there are chances that a single firm can operate within different geographic markets irrespective of the products. The sales made through suppliers in the designated geographic location are counted in the event that geographic market falls under definition from supplier locations. This becomes a fact regardless of the origin of customers and their purchase mechanisms.
The Agencies are bound to consider different customer reactions to price mechanisms for products within geographic market. Some of the considerations involve the shifting nature of purchases amongst customers within different geographic locations that relates to other existing terms and conditions. There is also the aspect of transporting products in relation to costs and the concept of proximity to customers. The cost of switching between products and suppliers within and without the designed geographic market as well as influence from downstream competition resulting from output markets.
Geographic markets defined from Customer Locations
This refers to definition of geographic markets based on designated location of customers. This nature of geographic market is applicable in the event that suppliers are capable of delivering products or services to consumer locations. Such markets include the regions within which sales are made. In this case, the competitors sell to consumers within the designated region. However, there are also possibilities of suppliers selling within the market but are from outside the confines of the geographic market. In the event that geographic market is defined on the basis of consumer locations, the overall sales are usually counted regardless of the response from those involved in making sales.
There is also consideration of the market participants, shares as well as concentration by Agencies as key part in evaluating competitive effects. There is further and detailed evaluation of market shares as well as concentration in relation to available and reliable evidence on substantial competition. Consequently, the concept of market share directly influences the nature of competitiveness from the firm. For instance, in the case where reduction in prices help in gaining new customers also becomes applicable to existing customers makes a firm with large market share to relax. At the same time, firms with higher percentage of market share always seem reluctant when it comes price reduction as compared to small firms. In this case, it is evident that the concept of market shares can easily be used as a reflection of company’s capabilities. For example the firms that have larger market share have the strength of expanding their output faster as compared to small firms. In the same manner higher percentage of market share is an indication of low costs as well as attractive productions.
Market participants entail all the firms that generate revenue from the designated market niche. This principle also applies to the firms that anticipate entering the relevant market in the future. In this case, the companies that are involved in the production of relevant products but do not sell within the designed geographic market can be considered as rapid entrants.
Impact of Institutions on new firm entry within emerging markets
The emerging markets usually display varying entry as well as exit rates. This calls for development capable of capturing the existing interaction between important aspects of formal institutions, their practices and impact on entry and exit rates. The case studies across countries reveal that different contingencies influence the relationships between institutions alongside entry mechanisms in each country. At the same time, there are empirical regularities also influences the factors that determine successful entry and also the constraints. An example of the regularity involves the existing interaction between the formal rules as well as informal structures. The differences also exist in the nature of the operation of these mechanisms serve. For instance, whether they compensate for the deficiencies in formal institutions or whether the insufficiency in formal mechanisms is built on the foundation of the poor informal mechanisms. Basically, the acceptable formal rules as well as structures are always subject to undermining force from informal mechanisms that easily block the entry of new firms.
The concept of entrepreneurship and the new firm entry process forms an important element for economic development. There are various mechanisms under which new firms contribute towards economic growth as well as development that includes generation, inclusion of innovative ideas and dissemination. Such innovative ideas help in the enhancement of efficiency as well as productivity including provision of diversity and healthy competition amongst firms within the market. It is important to note that the condition of the institutions determines the entry rates in both developed and developing economies and also across industries. Regulatory barriers play a critical role in determining the entry and exit rates. This makes it clear the importance and role of institutions in the development process since they determine the aggregate income especially in the context of developing countries. The complexity with which institutions are presented in different literature gives a clear picture as well as focus on property rights alongside their historical establishments. Moreover, other functional differences also exist especially between political and economic institutions. For instance, the political institutions are more likely to emphasize on the procedures as compared to economic institutions. These procedures may include contracting rights and regulations while the economic institutions may emphasize punishment necessary for non-compliance (Voigt, 2009). As a matter of principle, the nature of interaction that exists between formal as well as informal institutions can at times make the environment either conducive or worse for entrants.
Boardroom Diversity
The nature of the boardroom diversity influences the extent of a firm’s performance across industries. The nature of gender diversity impacts the monitoring as well as advisory functions that eventually affects the performance level. From the meta-analysis research, the boards with higher percentage of female directors tend to have more inclination in monitoring as well as strategic involvement; such is the characteristic of countries with a strong shareholder protection (Post and Byron, 2015).
Empirically, there are distinctive streams of investigation especially on gender representation. Firstly, there is the stream that deals with voluntary female representation within the board. Such representation is devoid of drive from gender quotas, however, it is the responsibility of the firms to cross-check their gender policies as well as governance choices (Adams, 2016). The second aspect of investigation emanates from the mandatory gender policies that operate across the world that benefits from novel set of data. Overall, the empirical results that shows the impact of the boardroom diversity appears to have mixed results due to differences in samples, methodology and time periods. Some studies reveal a negative correlation between the percentages of women on boards and the corporate performance while other show a significant impact of gender equality on firm’s profitability as well as market value.
Arguably, the women representation on the board tends to be more active on monitoring as compared to men. Such aspect may prove to be counterproductive especially in firms that are already well-governed while they yield positive results in firms with weak governance (Adams and Ferr...
Introduction
There exist numerous economic literature in which rights are considered as a means of providing solutions to technical aspects of the economy. In this case, governments should have the ability of freeing their citizens from poverty and also the poor having the ability to hold the suppliers of their needs within private and public domain accountable. Technical solutions work in an environment where economic rights exist that allows people to utilize their land or businesses. The government suppliers can be held accountable through political processes such as democratic elections. The existence of rights for citizens within a society results into technical solutions that eventually ensure development.
The market definition can easily be informed through different perspectives that include competitive effects. For instance, the aspect of reduction in the percentage of significant rivals that offers certain products and services determines the pricing mechanism that ensures the existence of relevant market to such products. In the same way, such effects also help in the direct prediction of the competitive effects of joint ventures. The nature of market definition aspects focuses majorly on factors that influence demand substitution. This includes consumer’s ability and willingness to change products owing to price differences and change in product quality including responsiveness from the suppliers. There are always numerous possible substitutes for products and services that are subject to scrutiny from customers due to merger. However, there is always the possibility of customers assessing in different manners the proximity of different products. This happens in scenarios where the products and suppliers within different regions act as perfect substitutes for one another to varying degrees. For instance, the idea of defining the market based on inclusion and exclusion of substitutes is a more simplified process incapable of defining the variations of products within the market fully.
Comparably, a broad market definition that encompasses product, as well as geographic substitutes, usually leads to misleading market shares. The market shares of different products within markets that have narrow definitions have a higher probability of capturing relative competitive nature, therefore, reflecting accurate competition between substitutes. Due to such occurrences, the antitrust markets that are properly defined tend to exclude the substitutes that offer an alternative option to customers in case of price increase. International agencies are known to utilize such principles that concern market definition in the process of evaluating appropriate market niches. The area of competitiveness that is affected by the merger may be geographically defined through boundaries for the purposes of accommodating consumers’ ability on substitute products and also suppliers ability to offer services to specific customers. Market definition principles as previously discussed in this study is applicable by Agencies in demarcating relevant market from either geographic or product dimensions.
The scope with which geographic markets are defined is largely dependent on the cost of transportation. However, there are other factors that tend to inhibit international trade amongst companies such as tariff and non-tariff trade barriers, language, regulations, reputation as well as the availability of services. At the same time, it is easier to evaluate the competitive significance of firms on the international platform through the use of fluctuations in exchange rates. In the case where price discrimination is absent on the basis of customer location, usually, the Agencies tend to utilize location of suppliers as a means of defining geographic markets.
Geographic markets Defined from Supplier Locations
This entails the region where sales are made as defined by geographical boundaries. Such is possible in the scenario where customers receive services or products at the designated supplier locations. In this scenario, competitor presents companies with products and services that are relevant in the designed market. However, the suppliers are at times bound to receive customers outside the designed boundaries of the geographic market. Alternatively, there are chances that a single firm can operate within different geographic markets irrespective of the products. The sales made through suppliers in the designated geographic location are counted in the event that geographic market falls under definition from supplier locations. This becomes a fact regardless of the origin of customers and their purchase mechanisms.
The Agencies are bound to consider different customer reactions to price mechanisms for products within geographic market. Some of the considerations involve the shifting nature of purchases amongst customers within different geographic locations that relates to other existing terms and conditions. There is also the aspect of transporting products in relation to costs and the concept of proximity to customers. The cost of switching between products and suppliers within and without the designed geographic market as well as influence from downstream competition resulting from output markets.
Geographic markets defined from Customer Locations
This refers to definition of geographic markets based on designated location of customers. This nature of geographic market is applicable in the event that suppliers are capable of delivering products or services to consumer locations. Such markets include the regions within which sales are made. In this case, the competitors sell to consumers within the designated region. However, there are also possibilities of suppliers selling within the market but are from outside the confines of the geographic market. In the event that geographic market is defined on the basis of consumer locations, the overall sales are usually counted regardless of the response from those involved in making sales.
There is also consideration of the market participants, shares as well as concentration by Agencies as key part in evaluating competitive effects. There is further and detailed evaluation of market shares as well as concentration in relation to available and reliable evidence on substantial competition. Consequently, the concept of market share directly influences the nature of competitiveness from the firm. For instance, in the case where reduction in prices help in gaining new customers also becomes applicable to existing customers makes a firm with large market share to relax. At the same time, firms with higher percentage of market share always seem reluctant when it comes price reduction as compared to small firms. In this case, it is evident that the concept of market shares can easily be used as a reflection of company’s capabilities. For example the firms that have larger market share have the strength of expanding their output faster as compared to small firms. In the same manner higher percentage of market share is an indication of low costs as well as attractive productions.
Market participants entail all the firms that generate revenue from the designated market niche. This principle also applies to the firms that anticipate entering the relevant market in the future. In this case, the companies that are involved in the production of relevant products but do not sell within the designed geographic market can be considered as rapid entrants.
Impact of Institutions on new firm entry within emerging markets
The emerging markets usually display varying entry as well as exit rates. This calls for development capable of capturing the existing interaction between important aspects of formal institutions, their practices and impact on entry and exit rates. The case studies across countries reveal that different contingencies influence the relationships between institutions alongside entry mechanisms in each country. At the same time, there are empirical regularities also influences the factors that determine successful entry and also the constraints. An example of the regularity involves the existing interaction between the formal rules as well as informal structures. The differences also exist in the nature of the operation of these mechanisms serve. For instance, whether they compensate for the deficiencies in formal institutions or whether the insufficiency in formal mechanisms is built on the foundation of the poor informal mechanisms. Basically, the acceptable formal rules as well as structures are always subject to undermining force from informal mechanisms that easily block the entry of new firms.
The concept of entrepreneurship and the new firm entry process forms an important element for economic development. There are various mechanisms under which new firms contribute towards economic growth as well as development that includes generation, inclusion of innovative ideas and dissemination. Such innovative ideas help in the enhancement of efficiency as well as productivity including provision of diversity and healthy competition amongst firms within the market. It is important to note that the condition of the institutions determines the entry rates in both developed and developing economies and also across industries. Regulatory barriers play a critical role in determining the entry and exit rates. This makes it clear the importance and role of institutions in the development process since they determine the aggregate income especially in the context of developing countries. The complexity with which institutions are presented in different literature gives a clear picture as well as focus on property rights alongside their historical establishments. Moreover, other functional differences also exist especially between political and economic institutions. For instance, the political institutions are more likely to emphasize on the procedures as compared to economic institutions. These procedures may include contracting rights and regulations while the economic institutions may emphasize punishment necessary for non-compliance (Voigt, 2009). As a matter of principle, the nature of interaction that exists between formal as well as informal institutions can at times make the environment either conducive or worse for entrants.
Boardroom Diversity
The nature of the boardroom diversity influences the extent of a firm’s performance across industries. The nature of gender diversity impacts the monitoring as well as advisory functions that eventually affects the performance level. From the meta-analysis research, the boards with higher percentage of female directors tend to have more inclination in monitoring as well as strategic involvement; such is the characteristic of countries with a strong shareholder protection (Post and Byron, 2015).
Empirically, there are distinctive streams of investigation especially on gender representation. Firstly, there is the stream that deals with voluntary female representation within the board. Such representation is devoid of drive from gender quotas, however, it is the responsibility of the firms to cross-check their gender policies as well as governance choices (Adams, 2016). The second aspect of investigation emanates from the mandatory gender policies that operate across the world that benefits from novel set of data. Overall, the empirical results that shows the impact of the boardroom diversity appears to have mixed results due to differences in samples, methodology and time periods. Some studies reveal a negative correlation between the percentages of women on boards and the corporate performance while other show a significant impact of gender equality on firm’s profitability as well as market value.
Arguably, the women representation on the board tends to be more active on monitoring as compared to men. Such aspect may prove to be counterproductive especially in firms that are already well-governed while they yield positive results in firms with weak governance (Adams and Ferr...
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