Competition Domestic and foreign institutions †Free Samples

Question: Discuss about the Competition Domestic and foreign institutions. Answer: Introduction The institution based business strategy has emerged as the leading perspective in the strategic management. It integrates the institutional dimensions in case of offering the relevant answers to the fundamental questions of the strategy. One of the challenges is to develop the a stronger measurement of the institutions. This study is helpful to discuss the role of the institutions when in enters into the foreign market. On the other hand, this study would also highlight the role of culture in how the institutions are shaped. Discussion Definition of the institutions in the context of business strategy In the increasingly complex and the integrated British market, a significant challenge for the companies is navigating institutionally indirect contexts- each of them would face a set of different opportunities and the challenges. The intuition based view strategy is the outcomes of the consideration. Explanation of the role of institutions entering into the foreign market As per the statement of Martin Vanberg (2014), it can be mentioned that institutions play a major role in the policymaking. Ministers and the civil servants negotiate in order to accept the legislative proposals submitted by the British Commission. In this connection, it can be stated that the parliaments are influential in two manners. On the other hand, it can be mentioned that the institutions also play an important role in the implementation and the enforcement. The British legislation is incorporated by the national administrations, department of state, regulatory agencies and the local authorities. Therefore, in a synopsis, it can be mentioned that the British council is the superior institution of United Kingdom. The role of the British institutions have discussed in the following: The British parliament plays the major role in the law making bodies of United Kingdom. It also has the appointment and the dismissal powers on the British commission and the forms the budgetary authority with the council of British Union. According to Ishak et al., (2016), it can be mentioned that the government of this country has give permission to the British organizations to participate in the free international trade. Therefore, this would be helpful to improve the financial position of the country and the countrys economy will boost up. Coccia (2014) highlighted that the British parliament has the rising influential effects on the countrys economy. Firstly, it is the only body, which is directly elected by the citizens of the member states. Secondly, it is assumed as the independent legislature. In order to start a business in the global market, the British Institutions plays an important role and observe whether United Kingdom has a greater relationship with that country or not. Before, expand the business in the target market, the British institution tried to examine whether the business environment s suitable for the expansion of the business. In this context, the authority also requires to take the legal permission of the home intuitions as well as also the targeted institutions. In addition, Janes, Nutt Taylor (2016) opined that the political factors are important to identify how the institutions are benefitted to influence a business. Some of the policy such as consumer protection legislation, environmental legislation, health and the safety law, employment law influence the management of an organization in case of the expansion of business on the global market. Moreover, it can be stated that the behavior of the intuitions of the targeted countries would affect the economic environment of the country. Explanation of the role of cultures of the institutions In the opinion of Wong, Mahmud Omar (2015), it can be mentioned that the cross country analysis reflects that democracy is connected with the reduction of countrys economic inequality. Democracy rises the number of stakeholders that the people have power is responsible to raise the economic redistribution through the increased pressure. Economic inequality reflects the political response for the demands. In addition, Sen et al., (2016) cited that the British institutions mainly focused on the lower income group people of the country. The institutions try to provide allowance to the lower income group people in order to mitigate the inequality among the lower and higher income group people. In addition, it can be stated that the institutions have fewer restrictions on the effect of political advertising and money in the political campaigns, which reflect it easier with the help of higher income citizens. Moreover, Dhillon (2016) pointed that the institutions organize the labor market in such a way to decrease the inequality. In this purpose, the British institutions fixed a minimum wage rate to the individuals, which can mitigate the inequality by limiting the lower pay. The British institutions also increase the union membership in order to push the wages upwards along with the rising effect up to the lowest 35 per cent of the income spectrum and also reduce the pay in the top of 20 per cent. According to Adegboyega Adegboyega (2015), the British Unions mostly cover the problems with the help of the medium skill level and also with the higher pay levels in the comparison with non union workers, who are assumed to be lower well paid. This has a direct impact to mitigate the rising inequality. Additionally, it can be mentioned that uneven union membership would rise the inequality. How weak institutions serve as a barrier to entry As opined by Martin Vanberg (2014), it can be mentioned that in terms of theories of competition, economic barrier to entry is a cost, which would be incurred by a new entrant into the market. Due to the barriers to entry, it is assumed as the cost, which would be incurred with a new entrant into the market. As the barriers to entry, protect incumbent firms, the firms can contribute to prices and it is essential when describe the antitrust policy. Barriers to entry aid the existence of the firms the potential market power. In the oligopoly and monopoly type market structure, the position of the firms in a market would be dominated as it is too costly and difficult in case of enter into the market. They would be erected by the incumbents, which are referred as the strategic or the artificial barriers. In the words of Coccia (2014), it can be stated that the barriers to entry would include the larger scale of production of the economy. If the firms have significant economies of the in cumbents would exploit scale and it and the new entrants can be deterred. Owning the scarce resources, the other firms would create considerable barriers to entry. On the other hand, the artificial barriers would consider the predatory pricing. With the help of this concept, it can be mentioned that the firm may deliberately lower prices to force the opponents out of the market. Conclusion This study has highlighted the role of the British institutions in the context of business strategy. On the other hand, this study has highlighted the role of the institutions when a firm expand its business in the global market. In this connection, the organizations require to follow the legal rules for getting the permission to expand the business in the foreign market. Moreover, the institutions want to mitigate the income inequalities among the higher and the lower income group people. On the other hand, this study has also described how the weak institutions would serve as the barrier to entry for a firm. References Adegboyega, J. A., Adegboyega, J. A. (2015). Physical activity and exercise behaviour of senior academic and administrative staff of tertiary institutions in Ondo State, Nigeria.International Journal of Education and Research,3(2), 189-201. Coccia, M. (2014). Structure and organisational behaviour of public research institutions under unstable growth of human resources.International Journal of Services Technology and Management,20(4-6), 251-266. Dhillon, S. (2016). Study of the relationship of leadership behaviour organizational climate and demographic characteristics in physical education institutions in Punjab Haryana and Delhi. Ishak, M. H., Sipan, I., Sapri, M., Iman, A. H. M., Martin, D. (2016). Estimating potential saving with energy consumption behaviour model in higher education institutions.Sustainable Environment Research,26(6), 268-273. Janes, G., Nutt, D., Taylor, P. (2016). Student Behaviour and Positive Learning Cultures. Martin, L. W., Vanberg, G. (2014). Legislative Institutions and Coalition Government. Sen, E., Tozlu, E., Atesoglu, H., Sahin, Z. (2016). THE EFFECTS OF ORGANIZATIONAL COMMITMENT ON SOCIAL LOAFING BEHAVIOUR AT HIGHER EDUCATION INSTITUTIONS 1.IIB International Refereed Academic Social Sciences Journal,7(22), 96. Wong, S. C., Mahmud, M. M., Omar, F. (2015). 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