The Impact of the Domestic Regulatory Environment on Competition and Case Study

The Impact of the Domestic Regulatory Environment on Competition and Corporate Strategy Development - Case Study Example Now a days, after the globalization and liberalization policies, the competition is not only from companies located with in a nation but also from firms established globally. All these factors that affect the competition and firm’s strategic management plans would be further influenced by domestic regulatory environment. The domestic regulatory environment includes the government policies that aim at social and economic justice, tariff structure in different services and technical regulations that aim at enhancing the growth rate. The influence of external environment and government polices on the corporate strategic options was well established (Venkatraman and Prescott, 1990). Though it was proved that the role of management positively influences the company’s performance, still the constraints caused by the domestic environment may result in negative growth rate (Thomas et al., 1991). This may happen at higher intensity when the domestic regulatory environment discou rages the products of the company by putting environmental safety norms. The government policies may also aim at bringing welfare state of the society for which the companies may be asked to follow the steps fulfilling the social obligations which in turn negatively influence the firm’s performance (Bryer, 1982). ... Similarly, the companies which are involved in fruit juice making may get huge benefit if the government policy encourages the export environment by giving tax concessions. At the same time, the companies that are involved in electronic goods may incur losses if the domestic environment encourages the imports from other nations at a cheaper price. Hence, the private or corporate business firms must have dynamic strategic management development options which provide higher adaptation compared to its competitors in the market (Teece et al., 1997). The element of diversification gives remarkable edge to the corporate houses in making flexible adjustments in response to any domestic regulatory environment. The advantage of mixing several products that suit the customer needs in terms of competitive edge and firms performance was well established (Simmonds, 1990). Those firms which concentrated only on one product have higher risk due to change in domestic regulatory environment. These fi rms may respond well to the technical regulations laid down by the government from time to time, but they fail in their competitive ability and adjusting to the new tariff structure in the market and to the regulations related to social and economic justice in the society. The companies which have strong and dynamic strategic development / management team strive well in the market as they predict the new changes in domestic regulatory environment and hence they respond faster to the changes with highest competitive ability. The corporate houses must respond to the domestic regulations as early as possible to reduce the losses and to capitalize the new situation

Apple Essay Example | Topics and Well Written Essays - 1500 words - 1

Apple - Essay Example These software and hardware systems have long provided success with regard to the company’s profitability. Moreover, while the company’s programmers, engineers, designers, and other personnel represent key resources, Apple Inc.’s capability to exploit these personnel’s abilities to develop hardware and software ecosystems encompasses the firm’s key ability. On an individual level, the resources represent only a temporary fraction of the firm’s competitive advantage. However, the combination of all the personnel’s abilities creates the firm’s sustainable competitive advantage. The establishment of Apple stores also provided the company with significant resources for physical presence since the stores act as sales locations, as well as means of advertisement. The stores allow the company to monitor and control brand image within the market. In order to maintain its current, strategic position, and enhance its success in the coming years, Apple Inc. should establish highly innovative software and hardware to augment its current resources. In addition, the company should also endeavor to employ personnel with Jobs’ passion for excellence (Lashinsky 58). Such personnel should not only form the company’s strategic planning department, but all departments in the entire company. Situational Analysis The company has a rather intriguing mission statement that not only provides focus to the company in terms of its business operations and processes. The company’s website provides a list of its products rather than a conventional mission statement. The company’s official mission statement states that it designs Macs, the best personal computers globally, alongside OS X, iLife, iWork, and other professional software. Apple directs the digital music revolution through its iTunes online store and iPods. However, popular beliefs hold that Apple Inc. got its conventional mission statement from on e of Steve Jobs’ quotes during the 1980s. Jobs’ quote can be summarized as follows: â€Å"Man is the developer of change in the world. As such, man should be above all systems and structures, and not secondary to them† (Lutchen 72). While various sources consider all these statements as the true mission statement, the company ends most of its press releases through a statement that bears a resemblance to traditional mission statements. The company ends its press releases with the statement, â€Å"Apple commits to the provision of the best personal computing experience to educators, students, customers, and creative professional across the globe through its innovative software, hardware, and Internet offerings.† The company’s mission statement provides a sense of direction, which is sufficiently flexible to the changing market situations. The company’s motivation to continue providing the best hardware, software and Internet offerings, means that it will develop technologies to adapt according to market situations. The industry has many successful competitors that pose a challenge to Apple Inc. However, the company’s strategy allows the firm to remain successful. Apple’s main competitive advantage lies in its broad array of products, especially its software, hardware, and Internet solutions (Cruikshank 81). The company’s immense resources such as personnel provide the backing for the company’s policies and strategies. This means that the company requires dedicated personnel to help it put