Rationale for Collaboration of Rival Firms Essay

Rationale for Collaboration of Rival Firms - Essay Example For him there is no tension between competition policy that allows collaboration and intellectual property rights and antitrust laws. On the contrary, the competition policy based on pure economic reasoning will at the same time promote innovation of new ideas and new ways of doing things and the firms that facilitate these innovations will reap a great benefit in the process. This type of competition policy also seek to promote co-operation between firms so as to pull funds and ideas together to accelerate economic development which otherwise could have been dragged due to barriers to innovation and the perception of sole ownership of innovative ideas (Teece, 1986, p.297). As widely taken, competition policy affects the very fabrics of competition and business behaviour. The U.S economy impressive performance is linked to the competition that promoted innovations through antitrust policies such as patent rights, intellectual property right, and copyright just to mention a few. The assurance that whatever one invent have a right to enjoy the fruits of it for a given duration of time have been the motivation drive towards more innovation and large investment in R&D. Although the competition policy is seen as in conflict with patents and copy right laws, both works to stimulate innovation and subsequent commercialisation of technologies. Competition policy requires a firm to deal with its competitor through 'essential facilities' doctrine and 'reasonable royalty'. This invites the negotiations that may lead to mergers, license or even joint ventures and alliances. These are rationale of collaboration by rival firms thus improving global economy in the long run (Buckley and Casson, 1988, p.48). Competition policy can be used... The researcher states that competitive markets are widely viewed as major drivers in fostering innovation. Competition regimes are conducive environment for innovation as companies learn from each other various techniques and strategies to improve their service delivery and products from their rivals in order to survive in the market. Nevertheless, global partners impact in bring a change in market structure might be a great impetus to economic growth and the rate of innovation to the countries involved in a global arena in general. The countries therefore are advised to make reasonable and strategic competition policies that allow for a certain degree of collaboration and partnering with rival firms. From the analysis, that was presented in the essay, it is clear that global competition attracts some kind of partnership from the rival firms. Firms’ collaboration promotes innovation as well as creativity and thus propelling global economic growth. The rationality behind collab oration of rival firms is to undertake such projects that require a huge capital and technical investments a single firm cannot be able to sustain. The cooperation is in such a way that each firms will at the end reap some benefits through a well regulated antitrust policy. We have also seen that not all cooperation is meant for the greater good of the society. In conclusion, the researcher states that rival firms collaboration promotes global competition while at the same time it can be anti-competition.

Information System for Managment Essay Example | Topics and Well Written Essays - 4250 words

Information System for Managment - Essay Example This paper approves that decision making is the most critical function of management. This is undertaken by a manager at every level from the top to the lowest level of management. Thus in the example of Wal-Mart , the store head, the process manager, the inventory control manager, the sales manager, the personnel and the administration manager will have to take decisions at their individual levels. MIS will provide critical support to each of these managers to enable them to carry out their tasks efficiently. While information is critical, it has be evaluated carefully by the manager at each level and cannot be based purely on that provided by the MIS. Since management is a human and dynamic function, a manager should be able to exercise his judgement in each case and use MIS as a tool for functioning rather than let it override other critical factors. This essay makes a conclusion that Software reliability is frequently based on the needs for which it is put. A Borough Council is not likely to have people who are attuned to functioning in a flexible, information technology rich environment, thus there is a need to train them in both soft and hard skills when such a change over of systems is undertaken. It is apparent that neither the Borough nor the provider of FLARE had taken into account the importance of taking the employees on board which finally resulted in the problems brought out in the case study.