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

The Influence of Economic, Political, and Social Factors on FirmsThe long leaning exist oer the influence of frugal , politicaland loving factors on the success of the devoteds. With some economistbelieving that scotch factors such as management twistcontribute 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, kind and economics reanimates a part in making the firm to be effective. So the avocationpaper allow address the question of whether political, economic orsociable factors contribute to success of the firms. The discussion ofeconomic, political and accessible factors will be based on the argumentbetween Marglin and Landers. contestation creates a prodding for companies to pioneer, improveefficiency and drive down prices. contention is a flummox of industrialstructure in which many firms fight in the fork out of a singleproduct in a competitive s urround where only the fittest or mostaffective firm succeeds. Before dismission further I will like to accentuatethe emulation Im referring to is perfect competition where virginfirms enkindle enter the food market if it appears profitable2. Because ofinsignificant barrier to entry firms are approach with challenge toinnovate and to improve efficiency. As stated by the neo-classical conjecture of the firm it is in the interest of the firm to keep themarginal damage as disordered as possible. The need to lower the average keep downcost persuaded firms to determine for efficient form of production.Competition from rivals forced firms to accept management agreements 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 exact edge everywhere other firms The creation of thefactories overcome the secure that workers had ov er their work in theearly phase of capitalist through the bungalow system. Under thecottage system workers were working from home and the domesticcraftsmen was scale of his time. The lack supervision under thecottage industry meant that workers had no control over how a lotworker produced per day. Firms were not benefiting because it was easyfor workers to steal untoughened 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 typesetters case in thefactory system firms exploited workers because of competition if Iwasnt because of competitions firms wouldnt have exploitedworkers. 1 Landers ,what do bosses rightfully 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 story .p167 Elger ,T & Fairbrother , P (1992)fordism and tractability .p.40REFERENECE LISTSChandler , A .(1992),managerial enterprise and competitivecapabilities trading history survey , vol.58,no .4.Elger, T & Fairbrother ,P.(1992),inflexible tractableness in N. gibibyte 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 cleavage ofLabour (Brighton , Harvester) The Influence of Economic, Political, and Social Factors on Firms attemptThe 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 econo mic 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 b oth 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 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 d o bosses do .In A .Gorz (ed),The division ofLabour (Brighton , Harvester)