STATES, MARKET AND FIRMS

The Impact of Differing Relations between States, Market and Firms on Strategic Thinking and Practice

The Impact of Differing Relations between States, Market and Firms on Strategic Thinking and Practice

Introduction

The purpose of this paper is to enlighten and explore the differing relations between states, markets and firms. Moreover, the analysis in this paper also presents the impact of such difference in relations upon the strategic thinking and practice. The essence of strategy construction depends upon the requirements of the structure. Hence, it can be interpreted that the strategic thinking and practice approaches used by states, markets and firms contrast each other based on diverse conceptions. The strategies in states, markets and firms are directly correlated with the priorities and preferences. Nevertheless, it is clear that the top most priority of a state in this regard is safety and security. In addition, political, economic and social stability are also the dimensions that can influence the strategies constructed and implemented by the states. These are the factors that serve as the roots of the pillars of the structure known as the state. The rules, regulations, strategic directions, strategic approaches, implementation of plans and practice of regulations in a state depend upon these factors.

Nevertheless, the priorities in the market are different. Moreover, the priorities in the market are dependent upon the category of the market. The market is the place where buyers and sellers interact. This is a platform provided to the individuals and organizations to facilitate the circle of exchange. At a market, a buyer and a seller interact and negotiate on a price in order to execute the transaction. In this scenario, the differing relations between the states, market and firms influence the smooth transaction processes carried out in the markets. The optimistic relations among the states and interrelated markets positively influence the market conditions. These conditions of the market are favourable for the buyers and sellers. Nevertheless, the differing relations contrast the positive conditions of market and portray unfavourable exchange environment.

In the perspective of a firm or an organization, the differing relations bring crucial consequences for the firms in any industry. There are several factors that influence the growth and performance of a firm. These factors can be categorized into internal and external forces. The internal forces of the firms represent the environment of the firm that influences its growth and performance. However, the external forces comprise distinct variables that influence firm's performance. The differing relations among the states, markets and firms are one of the external forces that a negatively correlated with firms growth and performance as they pioneer diverse hassles.

The Impact of Differing Relations on Strategic Thinking and Practice of States and Firms

The differing relations between states, markets and firms influence the strategic thinking and practice via diverse dimensions. One of these dimensions is foreign investment through which the strategic thinking and practice is influenced by differing relations between states, markets and firms. Foreign investment can be defined as the investment by a country's domestic citizens ...