Various public and independent research institutes as well as researchers have created and used different methodologies and tools to study local competitiveness issues. However, most of these studies focus on economic factors of place competitiveness; other areas such as social, historical, cultural, legal, political, environmental etc. aspects receive no or minor attention (Philips, 2008). The research aim is to go by referring to basic theories and concepts of plant’s competitiveness indicating the process of formation of plant’s activity’s competitiveness and suggesting the key factors and elements of micro and macro environment that affect the competitiveness of a plant’s operation.
Diversity of the methodologies and narrowness of the scope of the studies make the understanding, comparison and management local competitiveness factors in different businesses very complicated (Huffington, 2009). Although the importance of competitiveness of business economies is widely acknowledged, still there is a big lack of efforts to create methodologies and techniques to analyze the subject.
The environment is a complex combination of the economic system, political system, legal restraints, society, industry, labor relations, customer expectations, markets, competition, technology, culture, history, infrastructure, state of the economy, shareholder demands, natural environment, labor conditions, and so on (Rubin, 2009). We can classify these factors into five categories of the physical environment, opinionated and lawful aspect, financially viable, communal and socio-cultural factors, and technological factors (Elliott, 2008). Alternatively we can consider inherent or macro factors that give the infrastructure and framework, and competitive or micro factors that are set by the industry and market.
The key problem addressed by this essay is that contemporary scientific discussions do not provide a clear definition of the concept “plant competitiveness,” the most important factors influencing plant’s competitiveness are not defined and the system to operationalize comparable and acceptable plant competitiveness factors does not exist (Philips, 2008). The essay is based on a research, which aimed to prepare a plant competitiveness model indicating the process of formation of plant activity’s competitiveness and suggesting the key factors and elements of micro and macro environment that determine competitiveness of a contemporary plant.
The transition from microeconomics to macroeconomics is generally couched in terms of perspectives (Elliott, 2008). Having looked at the micro behavior of individual actors (households and firms), macroeconomics gains its relevance by focusing on the ‘bigger picture’. ‘Bottom up’ decision making is replaced by ‘top down’ investigation and the temptation is to radically separate the macro analysis from that which has gone before.
In common with all other organizations, we can classify the factors in ABC Complete Kitchens’ business environment as physical environment, political and legal factors, economic factors, social and socio-cultural factors, and technological factors (Huffington, 2009). Because of the nature of its primary operations in plant’s operation, the physical environment is likely to be more important than in many other industries.
Like micro, the entire macro framework is built on the presumption of rational calculators attempting to maximize their prospective returns. No matter how far a given concept seems to stray from these ideals, they can always be reinterpreted in terms of the key concepts (Rubin, 2009). Neoclassical economics is always and everywhere a theory of choice and applying its logic consistently can help with all manner of pedagogical issues.
Finally it allows for a greater level of higher order thinking more generally, as the analysis can always start from the immediate concept at hand before being reinterpreted in terms of the fundamentals. Turing briefly to the particularities of macro, I have argued that every topic should be linked explicitly to the ‘circular flow’ as the master concept that expresses the vision of the macro-economy presupposed by neoclassical economics. Once this is done, topics like money and banking, growth and development can be slotted into a much better framework and the macro course can become as coherent as its micro counterpart (Elliott, 2008).
Many rural region with detrimental ecological circumstances are more often than not underprivileged and less colonized resulting in an uphill challenge for a business development or growth. According to Rubin (2009), Establishing businesses in rural conditions, mainly in a immense region with low populace will involve soaring operating expenditure, together with shipping operating expense to reach patrons in isolated rural regions, (p.1).
Companies may have to travel to great extent that may or may not be productive to an industry’s overall effectiveness. Nonetheless, these soaring operating expenditure can be reduced. One would ask, how is that possible? The answer is by choicing the suitable lending tactic. For instance, the City of Camden is one of the most distress and dangerous city in the country. So in that are where once the population was over 79,000 currently, I believe it is a population of 5,000. In a region that lack the patron for a business to develop and grow, it might be probable to apply for some type of lending aid. I believe that these type of approaches does not call for constant contacts with patron since, this type of aid is to assist the business become stable.
I believe in a business the front of office or management is responsible in maintaining the patrons while sustaining a steady marginal expenditure. When exporting products to regions that are difficult to reach, I have a tendency to believe that it is the responsibility of management who has to make the modification to fulfill the needs of the patron while maintaining with the lending aid succession.
The greatest attention was paid to theoretical and empirical researches on the topic carried out in the fields of plant theory, public policy, management, economics, sociology, geography. Epistemological and methodological background of the research is based on the following theories and paradigms: competitiveness theory, systems theory, organizational theory, plant growth theory, management reform theory. In order to verify the theoretical basis for definition of the key plant competitiveness factors, an empirical research was conducted. Experts representing institutions of local and national government level, business organizations and non-governmental organizations who personally deal with plant competitiveness management issues were researched (Rubin, 2009). Theoretical plant competitiveness issues have been analyzed using the following methods of scientific research: systematic, comparative and logic analysis of scientific literature, case analysis, synectic method, classification, prognosis, theoretical modeling, interpretation, theoretical generalization.
In recent years the focus of international researchers on competitiveness issues of subjects of mega and macro levels has increased significantly. Competitiveness of cities, as units of sub-national level of governance, receives much academic attention (Philips, 2008). However, the number of plant competitiveness studies is still very limited, and the methods of analysis of this subject are only being created. The models of competitiveness represent all four levels of analysis: mega, macro, mezo, micro (Huffington, 2009). Review of major competitiveness models used for analysis of subjects of sub national level revealed that most of the models emphasize economic factors affecting plant competitiveness pay no or very limited attention to other types of factors, especially those that are outside of direct plant control. As results of different theoretical studies show, competitiveness issue can be solved more effectively if a required attention is given to social capital, institutional setting, legal issues, innovative environment and other areas of plant functioning.
Like micro, it is assumed that growth always comes from improvements in the supply of economic resources (factors and outputs) and the actual measurement can be done in three equivalent ways. The income method is a supply-side analysis which focuses on all factor payments made to households (Rubin, 2009). This allows planners to know the levels of taxes and transfers that are appropriate for given families. The output method is also a supply-side analysis which focuses on the payments received from the supply of goods and services. Understanding the outputs of different sectors is vital for infrastructural advancement, research and development (R&D) clusters, export competitiveness etc (Elliott, 2008). Finally there is the expenditure. Unlike the other two, the expenditure method focuses on the levels of demand in the economy and it allows planners to assess the balance between investment and consumption, public and private activity, imports and exports (the balance of trade) etc. Each method brings valuable information lacking in the other two and explaining this to students helps to increase the relevance of their learning.
Identification of factors, representing the external and internal environments of a plant, which have the greatest influence on plant’s competitiveness, start from identification of external factors (Huffington, 2009). It is of the essence to give emphasis to the significance of external factors for cities and their outcome. National and supranational policies, such as structure of national economy, level of innovations, national tax policy, development of human resources, tariffs, initiatives of macroeconomics and industry, other public policy conditions, level of accessibility, labor force skills, etc. directly influence results of a plant.