Why Nations Fail In their book, Why Nations Fail, Daron Acemoglu and James Robinson explain that some nations fail and others succeed because of their political institutions, their economic institutions, and the contingent path of history. The authors also knock down popular alternative theories as to why nations fail. They argue that geography, culture, and ignorance are not the keys to a nation’s economic success or failure. Next, they discuss how extractive political and economic institutions prevent a nation from achieving any long-term national growth. This is not to say that nations with extractive institutions cannot achieve any growth.
Jobs in private market were deemed insecure, and they did not provide perks. Lack of autonomy Bureaucratic intervention became commonplace in majority of the SOEs. In order to establish their own credit, bureaucratic meddling often dictated decisions making, such as the merging of firm to achieve economies of scale, and cooperation between municipal government. Usually these actions did not cater to the need of the industry or the market, and resulted in poor performance. Also, as mentioned before, with heavy social obligations, SOEs needed to provide certain social services instead of raising profits.
A huge flaw with individual is the fact that injured consumers tend not to purse court actions. This is usually due to them being daunted by the costs of legal action which is usually greater than the value of the claim, and by the length of
Referring to Mintzberg,’’strategic planning is not equivalent to strategic thinking, the first is analysis and the latter is synthesis respectively’’ (Mintzberg, 1994, p. 107). Relating this statement with the Bhabuta model, one can see that, Bhabuta model did not make a clear distinction between planning and strategic thinking which also makes the model not easy to understand by companies. Nevertheless, this model needed to be revised because, it is contradictory by trying to interpret it in the sense that the levels used are not
They concluded that low cost strategy is not able to provide sustainability in an organisation in the long term and cannot provide a competitive advantage. They mentioned that this what it does, it causes prices wars in firms. So, they believed that the best strategy is best cost strategy which entails providing the best value for a relative low price. The cost leadership strategy involves producing and selling volumes of standard and no frills products and underprizing everybody(Datta
Moller (2006) highlighted 3-4 key criticisms against the marketing mix framework; that the marketing mix does not consider customer behaviour, but is internally oriented, that it regards customers as passive and therefore not allowing interactions, that the mix is void of theoretical content, that it works primarily as a simplistic device focusing the attention of management and finally that the marketing mix does not offer help for personification of marketing activities. Kotler (2003), argues that external and uncontrollable environmental factors are very important elements of the marketing strategy programs. Therefore, marketing mix should consider customers, environmental variables and competitive variables. He suggests that two additional Ps of Political power and Public opinion should be added to the traditional 4Ps. Schultz (2001) argues that the 4Ps have less relevance today, but they made sense the time they were invented.
There may be instances of imperfect information that may cause market failure as persons are not able to fully access the slight advantage of the good. In the process of the market demand curve being developed by tabulating all individual demand curves, it is not possible for optimal market equilibrium to be derived. Firms often lack the knowledge of market opportunities and costs, on the supply side and may often put together an improper reasoning of market consumer demand or decline to act swiftly to demand shifts due to miscalculations in judgment. Therefore, this results in market
Disadvantages Nudges may be condescending in nature in many ways. Marketing relies on a one-dimensional mental model of consumer behavior. As it uses mental models which treats consumers’ motivations and abilities as inferior in nature as it suggests that the customer is not able to make decIsions on its own. Digital nudging is mostly focused on promoting specific behaviors. Outcomes that really matter, such as greater financial well-being of the consumer, cannot be achieved by single actions and in this respect check on the nudges.
It is incurred by some factors which we cannot foreseen today. “Two assumptions are axiomatic of ICT. The first closely follows transaction cost theory (TCT) in that many important investments are observable ex post by economic agents close to a trade, but they are not verifiable in a court of law. In the jargon, they are not contractible. In particular, a contract cannot condition prices (or anything else) on ex post investments.
There is a severe lack of sophisticated and automatic machinery in small and large scale industries. The output is not up to the mark quantitatively as we as qualitatively. We cannot export our products to earn foreign exchange On the other hand; we import many products and lose our foreign exchange Due to backwardness in technology only raw material is exported. Inadequate financial resources and capital formation Lack of physical capital in the sense of buildings, machinery and tools, raw materials and other intermediate goods is a serious obstacle to the economic development of Pakistan. They are produced by investment resulting from savings.