The Influence of Economic, Political, and Social Factors on Firms :: influence economic political social factors firms long controversy exist success economist believing such management structure contribute karl marx 1976 other argued sole determiner believes economics plays part making effective following paper will address question whether discussion based argument marglin landers competition creates spur companies innovate improve efficiency drive down prices Economics Business Management Essays The Influence of Economic, Political, and Social Factors on Firms

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

The long controversy exist over the influence of economic , political
and social factors on the success of the firms. With many economist
believing that economic factors such as management structure
contribute to the success of the firm. Karl Marx (1976)[1] and other
economist argued that economic factors are not the sole determiner of
firm?s success. Marx believes that political, social and economics
plays a part in making the firm to be effective. So the following
paper will address the question of whether political, economic or
social factors contribute to success of the firms. The discussion of
economic, political and social factors will be based on the argument
between Marglin and Landers.

Competition creates a spur for companies to innovate, improve
efficiency and drive down prices. Competition is a model of industrial
structure in which many firms compete in the supply of a single
product in a competitive environment where only the fittest or most
affective firm succeeds. Before going further I will like to emphasise
the competition I?m referring to is perfect competition where new
firms can enter the market if it appears profitable[2]. Because of
insignificant barrier to entry firms are faced with challenge to
innovate and to improve efficiency. As stated by the neo-classical
theory of the firm it is in the interest of the firm to keep the
marginal cost as low as possible. The ... [to view the full essay now, purchase below]

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