“Strategies (Peculiarities) of Business and Economic Development” Nowadays more and more companies all over the world face challenges, which threaten the development of businesses.
It is difficult to provide classification of all these challenges, since they come from different sides of the economic and business maintenance. Therefore, people try to adjust company strategies to new environments in order to keep the balance between successes and perspectives of the company. Implementing various orienteers to improve profitability of organizations, holders try to watch new tendencies of business and economic development, following them on highest possible levels.
This part of the paper is to research the peculiarities of business strategies among different companies with the help of various resources. Paper of Khanna & Palepu (2006) shows all the nature and present condition of companies, settled in developing countries with emphasis on the evolving market. It is difficult to establish efficient and profitable business organization in developing countries because of the economic instability. In order to overcome it, stakeholders try to set relationship with companies-partners outside developing countries in order to get connections among different environments and get the ability to monitor changes, happening there (Khanna & Palepu, 2006). Maintenance of multinational collaboration requires strong strategy with the long-term perspective in order to consider various changes in environment while enhancing the workability of companies.
Therefore, financial markets should be analyzed in their regulatory systems and security programs for the provision of a stable infrastructure. Performance variation of a business group is determined by its characteristics, but not fully. Elango et al. (2016) review strategies of business development from diversifications on groups, providing different regimes on contract and regulation. The inequality between sellers and buyers becomes the factor, issuing necessity of improving the intermediaries of information for the company’s better maintenance. Along with it, the authors see potential in improving businesses in developing countries with the establishment of foreign competition standards, which should regulate work in the domestic environment for its proper development (Elango et al., 2016).
The differences in business group sizes and affiliations should be considered, but used in order to enhance working strategies along businesses.Nevertheless, the hypotheses, listed in the paper, may lead companies to reduce on the foreign competition scale (due to the great diversification of business groups). This way, the economic development affects the structure, raising challenges of profitability. There comes a different paper, which enlightens the peculiarities of existence of non-profit organizations like FUNDES, which promote the development of enterprises across Latin America (Bucher et al.
, 2016). Dealing with economic development from the side, the company shows good dynamics of improving business strategies of organizations in developing countries. Stating challenges of poverty and enhancement of private sector, FUNDES focus their attention on creation of job places, launching of medium and small enterprises (Bucher et al, 2016). Nevertheless, services, provided by assisting organizations, require their own development and sustainable support from other countries.
Information asymmetry in and out developing countries then plays a crucial role in performance of corporate sustainability regulations, implemented towards supporting enterprises and evolving businesses. Thus, the information of Diebecker & Sommer (2017) allows improving interaction by the guidelines of voluntary activities. Considering the fact that more and more stakeholders want to keep or improve their reputation in the business sector, they help developing organizations and become investors to already sustainable enterprises, promoting e-commerce and its enhancement on the worldwide arena (Agarwal & Wu, 2015). Doing so, they introduce new strategies, inspired by their personal experience, to the wide use of the companies and improve the workability and position on the stock market, allowing others to provide management or assistance to developing companies (Lange, 2016). Domination of investors along the subordinate or supported companies then can become beneficial for organizations, but raises issues of the enterprise’s coordination with the focus on corporate social responsibility. In order to integrate demanding environmental and social concern to the management of developing companies, owners try to introduce supply chain structure, seeking to improve the economic development of the enterprise. Optimization of the firm’s profits becomes a key aspect to mention, but the lack of experience and proper functioning of all business systems applied becomes an obstacle (Letizia & Hendrikse, 2016). Various designs of supply chain are implemented to the company in order to determine the direction of its work and potential of development through activation of tested regime and introduction of corporate social responsibility that evaluate the interaction between countervailing power, vertical synergy of CSR and free riding incentive to identify benefits and risk points of any firm.
Nevertheless, management then achieves great area of research on efficiency of initiatives applied (Su et al., 2016). Cooperation of stakeholders and investors, support from partners and overall information about modern business strategies provide a variety of CSR activities to be tested (Su et al., 2016). In the end, it appears that collaboration is not optimal for long-term development of companies, and the period of its management changes along with the modification of its economic condition.
Emerging economies are rather complicated to analyze in terms of performance because of the wide range of market diffusion. This way, businesses in developing countries require changes in corporate reputation. Following Deephouse et al. (2016), the reputation opens great perspectives for any company due to its position – the key signal of proper management allows enhancing the consequences of its working processes with the additional competitive advantages. Companies-giants then can invest money in developing firms in order to achieve some modifications in already existing reputation & culture. Nevertheless, such a factor may diversify the performance strategy with potential deficiencies. Ali et al. (2016), for example, claim the globalization as the main border to increase the profitability of any company due to the lack of originality.
Multinational companies achieve development opportunities and growth, but lose the identity on the global market, and then the developing companies, circled around one environment become more demanded (Ali et al., 2016). Such a corporate diversification is not limited to geographic position, but expanded to the product performance, which should be governed on the national level.
Another great obstacle for developing enterprises is the lack of knowledge, concerning business strategies and of economic stability of a firm (Moghaddam et al., 2014). Along with it, the efficiency becomes emerging too.Some companies try to regulate their profits and achieve corporate benefits through reduction of costs or product quality, but see no improvement of the enterprise value due to the decrease in functions of services, distribution and marketing (Moghaddam et al., 2014).
In order to improve these functions and provide equality among services, firms provide regulation of specialization in order to enhance the knowledge acquisition and facilitate the ability of enhancing corporate value (Lee et al., 2014). Knowledge management then becomes more centralized for the provision of innovations, which are highly honored on the global market. Along with it, companies in developing countries require strong support from investors. Following global tendencies and performing functions of product distribution and smart marketing, firms can achieve high position on the worldwide financial arena. Paying attention to attendant factors, influencing the development of firms, like social responsibility and people’s attitudes, stakeholders achieve the right to choose perspectives for enterprises by actions it performs. The rate of corporate performance then should be counted on the global scale in business sector in order to improve the multinational & intercompany relationships.Kalasin et al.
(2014) focus their attention on improvement of the economy from the side of advanced markets. Strategies, which are efficient internationally, cannot show any reduces in profits to developing companies, if implemented correctly. That is why the collaboration between entrepreneurs becomes essential. It gives the diversification of business policies and their regulations, which results in the improvement of the overall condition of economy & businesses (Kalasin et al., 2014). At this time, social structures are affected as well. Companies try to fight against instability and inequality in order to stimulate their own sustainable economic growth.
While social innovation method achieves more and more popularity, developing firms try to adjust their business strategies to the profitable for “seller-buyer” collaboration (Turker & Vural, 2017). Such a concept reflects in different ways, but changes the social attitudes to companies.Carnevale & Mazzuca (2014) show the rates of bank valuation and sustainability regulations, which identify the range of financial variables.
Estimation of existing strategies gives great perspectives to CSR activities, turned to improve the social framework and influence the growth potential. The ability of getting support from well-developed enterprises gives the assuredness in legitimacy of business strategies among different ownership. Manufacturing experience then becomes a supportive force, but limits the success of independent actions (Alcacer & Oxley, 2014). Sustainable development of a firm then becomes a complicated issue, which should be regulated up to the peculiarities of developing companies and distribution of their goals.ReferencesAgarwal, J. & Wu, T.
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