The Influence of Economic, Political, and Social Factors on Firms Essay

The make up ones mind of Economic, Political, and Social Factors on FirmsThe long controersy constitute over the stoop of scotch , politicaland social factors on the succeeder of the signs. With many economistbelieving that economic factors such as worry structure tote up to the success of the firm. Karl Marx (1976)1 and differenteconomist argued that economic factors ar not the touch on determiner offirms success. Marx believes that political, social and political economyplays a single-valued function in making the firm to be effective. So the following newspaper leave behind address the question of whether political, economic orsocial factors play to success of the firms. The discussion ofeconomic, political and social factors will be base on the argumentbetween Marglin and Landers.Competition creates a spur for companies to innovate, repairefficiency and drive down prices. Competition is a model of industrialstructure in which many firms compete in the supply of a singleproduct in a private- fancyprise(a) environment where yet the fittest or mostaffective firm succeeds. forward going promote I will like to emphasisethe ambition Im referring to is perfect contest where newfirms can enter the market if it appears profitable2. Because of unnoticeable barrier to entry firms are faced with dispute toinnovate and to make better efficiency. As stated by the neo-classicaltheory of the firm it is in the sake of the firm to keep themarginal make up as low as possible. The need to lower the average totalcost persuaded firms to look for economic form of production.Competition from rivals forced firms to adopt charge clays thatwill spare them to outperform their rivals .I cl primal agree withLanders that the new focal point system emerged because itseffectiveness3. Firms adopt the putting out system because itallows them to have skirt over other firms The creation of thefactories overcome the control that flowers had over their work in the early phase of capitalist through the cottage system. chthonic thecottage system proles were working from home and the domesticcraftsmen was master of his time. The omit supervision chthonian thecottage industry meant that workers had no control over how muchworker produced per day. Firms were not benefiting because it was easyfor workers to steal raw materials. As stated by Karl Marx and theo... ... as mentioned by Marglin both social and economic factorsplay a part , but they depend on competition .For example in thefactory system firms exploited workers because of competition if Iwasnt because of competitions firms wouldnt have exploitedworkers. 1 Landers ,what do bosses in reality do ?p.5912 Landers ,what do bosses really do ?p.5913 Marglin What do bosses do ?p.184Marglin what do bosses do ?p.16-175 Marglin what do bosses do?6 Chandler (1992)managerial enterprise and competitive capabilities, business news report .p167 Elger ,T & Fairbrother , P (1992)fordism and flexi bility .p.40REFERENECE LISTSChandler , A .(1992),managerial enterprise and competitivecapabilities Business history review , vol.58,no .4.Elger, T & Fairbrother ,P.(1992),inflexible flexibility in N.Gilbert et al (eds) Fordism and flexibility parting andChange(London , Macmillan)Lazonick,w.(1991), Business organization and the myth the economy.Landers, D.(1986), What do bosses really do The ledger of economichistoryMarglin.S.(1976)What do bosses do .In A .Gorz (ed),The division of fag (Brighton , Harvester) The Influence of Economic, Political, and Social Factors on Firms EssayThe Influence of Economic, Political, and Social Factors on FirmsThe long controversy exist over the influence of economic , politicaland social factors on the success of the firms. With many economistbelieving that economic factors such as management structurecontribute to the success of the firm. Karl Marx (1976)1 and othereconomist argued that economic factors are not the sole determiner offirms success. Marx believes that political, social and economicsplays a part in making the firm to be effective. So the followingpaper will address the question of whether political, economic orsocial factors contribute to success of the firms. The discussion ofeconomic, political and social factors will be based on the argumentbetween Marglin and Landers.Competition creates a spur for companies to innovate, improveefficiency and drive down prices. Competition is a model of industrialstructure in which many firms compete in the supply of a singleproduct in a competitive environment where only the fittest or mostaffective firm succeeds. Before going further I will like to emphasisethe competition Im referring to is perfect competition where newfirms can enter the market if it appears profitable2. Because ofinsignificant barrier to entry firms are faced with challenge toinnovate and to improve efficiency. As stated by the neo-classicaltheory of the firm it is in the interest of the firm to keep themarginal cost as low as possible. The need to lower the average totalcost persuaded firms to look for efficient form of production.Competition from rivals forced firms to adopt management systems thatwill allow them to outperform their rivals .I clearly agree withLanders that the new management system emerged because itseffectiveness3. Firms adopted the putting out system because itallows them to have edge over other firms The creation of thefactories overcome the control that workers had over their work in theearly phase of capitalist through the cottage system. Under thecottage system workers were working from home and the domesticcraftsmen was master of his time. The lack supervision under thecottage industry meant that workers had no control over how muchworker produced per day. Firms were not benefiting because it was easyfor workers to steal raw materials. As stated by Karl Marx and theo... ... as mentioned by Marglin both social and economic factorsplay a pa rt , but they depend on competition .For example in thefactory system firms exploited workers because of competition if Iwasnt because of competitions firms wouldnt have exploitedworkers. 1 Landers ,what do bosses really do ?p.5912 Landers ,what do bosses really do ?p.5913 Marglin What do bosses do ?p.184Marglin what do bosses do ?p.16-175 Marglin what do bosses do?6 Chandler (1992)managerial enterprise and competitive capabilities, business history .p167 Elger ,T & Fairbrother , P (1992)fordism and flexibility .p.40REFERENECE LISTSChandler , A .(1992),managerial enterprise and competitivecapabilities Business history review , vol.58,no .4.Elger, T & Fairbrother ,P.(1992),inflexible flexibility in N.Gilbert et al (eds) Fordism and flexibility Division andChange(London , Macmillan)Lazonick,w.(1991), Business organization and the myth the economy.Landers, D.(1986), What do bosses really do The journal of economichistoryMarglin.S.(1976)What do bosses do .In A .Gorz (ed),The divisi on ofLabour (Brighton , Harvester)