Organisations competition business environment - Essay Example

This is not a war but the language of business is filled with win-lose terms. An organisation wins a game, beats the other sales. This is a daily practice and we go through everyday with these types of competitive activities. A unique characteristic of global competition is that it is a closed text. This competition adopts a signification of the underlying model that justifies contemporary strategies of businesses. However, critics of competition have always argued that competition should be avoided because of its negative effects on the performance of organisations.

They are of the view that that competition can result in nervousness with high anxiety levels, lesser productivity, de-motivation by those who believe they have no chance of winning, extrinsic motivation, contingent self-esteem that goes up and down depending on how one's performance compares with that of others, bad relationships, aggression toward others in an attempt to win at all costs, and fraud. "The outcomes of competition are seen as so destructive by some individuals that they have proposed eliminating it altogether, especially from the workplace" (Maehr & Midgley 399-427).

But the success stories of different organisations tell us that competitive experiences have always been perceived to be healthy for businesses. The macroeconomic theory of global trade recognizes competition as a driving force. Boehm develops a framework for five forces driving competition among human service organisations: (1) rivalry among existing organisations; (2) the presence of substitute services in the market; (3) the bargaining power of suppliers; (4) the bargaining power of consumers; (5) the threat of entrance by new organisations (Boehm 61-78).

In the international trade nations cannot have competitive advantage in all goods and services, but they have to compete with others even in fields of their excellence. According to the story of global version of competition, the signals that organisations receive have a restricted interpretation. Firms are caught in an algorithm that demands top interests of stockholder. In result, firms adopt a strategy of raising productivity and reducing the cost. A nexus is depicted between signals, incentives and rational behaviour.

Signals acquire the form of relative prices. Profits provide the inducement to perform on signals. To behave rationally is to reply with an action to them.Since 1980 the pace in the global competitiveness is very fast and firms around the globe have been experiencing different types of competitions. By summarising the story of global version of competition, it can be said that at present the speed of change is extraordinary. In the whole situation information technology, globalisation of world finances and markets' deregulation have played a great role and provided a new shape to the competitions of organizations.

The situation has provided a great benefit to developing countries. Several firms of developed nations are experiencing a shock of supply from their counterparts in the developing world. As the transfer of capital and technology from developed world is no more a problem, developing countries are competing with the firms developed nations. Low wages is also a strong tool in the hand of developing countries to give tough competition to the firms of industrially advanced countries. And this is also a