The Impacts as well as also also Effects of Specified Laws as well as also also Regulations on a Given Firm
- June 3, 2017
- Posted by: marlenedubois
- Category: CPR Training
Every country has its own regulations, laws as well as also also regulatory bodies or agencies governing the manufacturing, sales, marketing as well as also also distribution of products within the country. Laws as well as also also regulations are purposely made for human beings as well as also also additional institutions as a guide to bring order as well as also also sanity into the society. Because of This kind of, that will can be likely that will their application will impact upon the plans of firms; their effects on a given firm are also inevitable.
An attempt would certainly be made to discuss specified regulations as well as also also laws with particular reference to aviation as well as also also airline, environmental regulations, stock market regulations, banking regulations, research (as well as also also development) co-operation regulations, stock options regulations, labour regulations, intellectual property as well as also also social security regulations industry by industry as well as also also effects on the plans of firms where necessary.
For example, the Airport High Density Rule (HDR) within the aviation industry was considered as controversial. This kind of rule requires that will no more than 155 flights take off as well as also also land at O’Hare Airport as well as also also at three additional major airports within the country between 6.45am as well as also also 9.15p.m.that will restriction was likely to keep number of airline operations at O’Hare during that will timeframe as well as also also also to keep the amount of noise generated by aircraft. When This kind of failed, a law was proposed to abolish the rule.
On the tobacco industry, for example, the Food as well as also also Drug Administration (FDA), an agency of the US government published a rule on tobacco within the federal register to regulate the sale as well as also also distribution of cigarettes as well as also also smokeless tobacco to children as well as also also adolescents based on the health consequences of tobacco use. The rule specifies that will anyone younger than 18years of age should not be sold cigarette as well as also also smokeless tobacco. The rule further requires manufacturers, distributors, as well as also also retailers to comply with certain conditions regarding the sale, distribution as well as also also promotion of tobacco products. Thus, vending machines as well as also also self-service displays were banned; billboards within 1,000feet of schools as well as also also playgrounds were also prohibited. This kind of might have adversely affected firms who engage in such businesses.
In financial terms, however, the rule can be likely to produce significant health-related benefits, ranging between $28 billion to $43 billion each year based on the premise that will many adolescents would certainly not start smoking because of the rule; with the FDA estimating that will the rule will impose one-time costs of around $187 million.
With firms of all sizes, access to capital can be of great importance especially when that will comes to start-ups.Laws as well as also also regulations may affect the amount of investment available either by foreign or local investors or financial institutions. The most important regulations on capital are usually set by governments. These rules or regulations mainly affect the development of venture capital even though they are meant to guard against defaults. within the UK for example, the introduction of the business angel networks by the government to co-ordinate the flow of SME investment capital can be proving successful-a positive effect. Also due to lack of access to pension fund capital within the European Union there can be a limited institutional investment. within the case of the United States, most capital venture firms prefer to make investments larger than $3 million, while most entrepreneurs are unable to obtain more than $250 000 by own source as well as also also close relations.
The impact of regulations on plans of firms especially those who are technology-based limits the venture capital funding for these firms as well as also also affect what they can or intend to do as well as also also eventually limiting their capabilities to employ fresh hands thereby affecting the socio-economic fibre of the society. For example, some government regulations even specifies the type of investors eligible to fund venture capital because of the high risks for certain classes of investors.
In some countries, most firms’ source of financing can be through the stock markets. within the UK for example apart by the London Stock Exchange, there can be Alternative Investment market( AIM); purposely established to assist SMEs. Quite often, the rules on the registration, listing as well as also also IPO in terms of size, age ,profit as well as also also management set up are too costly as well as also also unnecessarily complicated for tiny as well as also also start-ups. This kind of can be known to hamper access to finance for most firms as well as also also invariably producing that will impossible for certain firms to pursue their plans as well as also also invariably their growth needs. Ghana Sugar Estate can be an epitome of firms which are denied needed funding as a result of controversial restrictions on listing to the Ghana Stock Exchange. The effects of This kind of can be seen within the overgrown plantations of the newly formed sugarcane company within the Eastern Region of Ghana, loss of about £2,000 a day in revenue to the company as well as also also loss of jobs, as well as also also raw materials for most industries which depend on processed sugarcane for their work. The impact on the firms planning process can be that will funds will not be available to pay as well as also also maintain most of its qualified personnel.
With technology-based firms like which need constant innovations, source of financing can be key to their planning as well as also also so any regulations or laws meant to provide adequate source(s) of finance can be welcomed.
The NYSE has come under intense scrutiny to reform as there had been spates of irregularities within the exchange in terms of trading practices. Up till 2001, stocks traded in fractions of eighths as well as also also sixteenths i.e. 12.5 cents as well as also also 6.25cents respectively enabling a specialist buying a stock to sell to make at least 12.5cents.that will has narrowed to a mere penny. This kind of can be as a result of decimalisation; a rule set up to change trading by fractions to decimals.Decimalisation reduces spread. The largest specialist firm LaBranche & Co., has been affected that has a reduction of its market capitalization being halved to $474million within the past year. The effect of This kind of regulation on LaBranche’s plans could be felt in its budget as funds might not be available. that will will also have effect on its investors.
Notwithstanding This kind of, the impact of This kind of decimalization rule can be felt on NYSE which within the long term can tear the Exchange apart thereby affecting the very people the rule seeks to eliminate that will can be the brokers as well as also also specialists on the floor. The effect on NYSE’s plan can be to start perform its 1.4b shares daily electronically. that will can be believed that will if NYSE does not match its rivals like NASDAQ on automatic trading, investors can take their trades elsewhere as well as also also that will means a lost of huge annual fees in revenue to NYSE as well as also also possibly lost of jobs.
Until recently when that will was announced on the TV a proposed credit regulation to improve transparency, the credit or loans market has been shrouded with secrecy that will most firms were paying too much interest which affects their operations. Even though to the large firms the unavailability of the transparent credit regulation seem to benefit them i.e. their profit, on the whole that will costs the SMEs to the extent that will the US government has introduced fresh types of regulations that will requires banks to report their lending to SMEs which are ranked as well as also also publicised by the government as a guide for potential lenders. In addition, within the United States, reforms to reduce paperwork, speed up loan approval as well as also also reduce costs have led numerous commercial banks to create fresh departments specialising within the origination as well as also also sale of tiny business advice as well as also also additional guaranteed loans. At the moment some 60% of SMEs right now rely on some form of bank credit.
In Ghana, the government has put in place certain regulations which are believed to be in favour of tiny firms like First Allied Loans as well as also also Savings Bank. This kind of company posted a profit before tax of about $2m, a lot of money for a fresh bank. The impact on the plans of This kind of firm can be the recruitment of the best human resources within the industry culminating in a position to compete favourably with old as well as also also big banks within the Ghanaian banking industry.
However ,after deregulation in Britain, competition between banks as well as also also stock markets as well as also also among banks rose with loan increases to SMEs.Nationwide Building Society was one of such banks to benefit by deregulation. that will can right now compete favourably with additional high street banks. Nationwide can be creating more employment as a result of the deregulation law. The impact on the firm can be that will profit has increased as well as also also its members are satisfied thereby growth can be imminent.
In a world nowadays with increased, challenging as well as also also competitive immense technology innovation as well as also also know-how, fresh businesses spring up in This kind of sector as a result of its dynamism. that will can be also another sector that will carries a strong interest in research as well as also also development in co-operation. These technology-based firms or enterprises, however, are incapable to engage themselves for in-house research activities. To This kind of end, therefore, there are as well numerous regulations most popularly the antitrust law. Known also as the Sherman Act, This kind of can be meant to prevent monopoly. Microsoft was accused of using its position within the software market to maintain its monopoly in operating systems. that will was also accused also accused of using its operating system monopoly power to dominate the browser market as well as also also that will Microsoft bundled its browser into its operating system to try to force Netscape out of the browser market. By antitrust standards, a judge gave an extraordinary ruling describing Microsoft’s dominance of the PC operating system market as “applications barrier to entry” as well as also also by that will Microsoft held its prices substantially above the competitive level. The effects of This kind of law on the plans of Microsoft can be that will consumers will right now have more choice as well as also also so Microsoft will have to come out with more innovations to attract more customers as well as also also maintain its position within the industry right now that will there seem to become a competitive market place where all kinds of innovation can thrive. Regulators right now appear more powerful as well as also also Microsoft will have to reconsider additional related laws when planning. The impact on Microsoft’s plans within the long run will in my opinion be positive bringing about more improvements within the PC operating market.
Another area with regulations of concern can be intellectual property laws or intellectual property rights (IPR).The reader’s digest word power dictionary defines intellectual property law or rights (IPR) as ”an intangible property that will can be the result of creativity, e.g. patents or copyrights.” Just as research findings are commercially traded by the owners or universities, patents as well as also also copyrights are also traded. Although, the filing of patents can be generally known to be inefficient, slow as well as also also costly with the system usually in favour of larger firms, its absence could have brought about chaos in industry. For example a French court ruled against internet search powerhouse Google Inc.in an IPR case for linking a trade marked search terms as well as also also ordered Google to stop. The impact on Google can be yet to become significant nevertheless that will can be obvious that will that will immediately sent a message to them to review their plans on their IPO which will in effect affect their business plans leading indirectly to a fall in profit as a result of the effect of the restriction on the search services they provide.
that will can be widely accepted amongst academics as well as also also executives within the business world that will, the main assets of most firms can be their personnel in additional word their human resources. There are numerous employee-related regulations as well as also also laws in terms of labour, on recruitment as well as also also hiring of workers; social security with regard to retirements, pensions as well as also also health benefits; as well as also also the newly introduced stock options to compensate employee.
The costs as well as also also benefits of such regulations are enormous considering the fact that will employee-related issues are somewhat at the fabric of the organisation.In many countries the regulations ranging by fee-charging recruitment services, working hours to social benefits limit the freedom of business executives as well as also also entrepreneurs to operate usually in terms of hiring as well as also also retaining qualified workers. Some regulations on labour also restrict the recruitment as well as also also dismissal of personnel, payment of overtime as well as also also use of part-time as well as also also temporary workers. Coyne (1998) writes that will The European Union Directive on the Organization of Working Time which establishes a maximum 48-hour working week including overtime can be considered by smaller firms to be interpreted in an inflexible way thereby restricting their ability to make best use of their labour resources. These definitely affect the firms because they are unable to recruit the best of personnel they might be looking for which could indirectly affect its operation(plans) as most banks choose to deal with firms with most well- qualified personnel. However, to those on the additional end of the spectrum, the limitation on the maximum hour regulation can be of great benefit as well as also also has had positive impact on the plans of the firm. London United Busways Ltd. for instance has recently recorded its lowest accident rates as a result of the ceiling of EU maximum driving hours a day (as well as also also week as well) thereby preventing tired nevertheless money-seeking drivers by driving. The company can right now rely on the services of recruiting agencies to cover for the extra hours. The long-term benefit to LUB can be that will that will can employ few workers, give them overtime to cover the needed hours as well as also also save some costs on pensions as well as also also sick pay to workers. The impact on the plans of LUB can be that will customers’ confidence within the company will increase as well as also also enhances its corporate social responsibility stance.
that will must be emphasized here that will, the introduction of stock options, which are a fresh as well as also also valuable approach to compensate employees, are prohibitive, excessively regulated or heavily taxed in numerous OECD countries.However, as a result of securities rules governing that will, the issuance of stock incentives as well as also also fiscal rules for their taxation makes that will well-known with most US tiny or start-up firms. that will can be widely used by firms like Yahoo as well as also also Google within the early stages to recruit as well as also also or keep employees within the company. Even though research into This kind of area can be ongoing, that will can be claimed that will they have helped within the high growth of the that will as well as also also software sector at the Silicon Valley with particular reference to Google which has managed to keep its best human resources over time, the impact on the firm can be even on the brand image as well as also also attributes that will that will has acquired for itself giving that will a competitive advantage over the likes within the that will sector as well as also also also generating employment for a lot of fresh ambitious graduates.
Certainly health insurance market can be another area which can be of great concern to most governments as a result of sandals as well as also also fraud.Recent studies into health insurance regulations have concluded that will state regulation of insurance issue, renewal as well as also also rating in general either reduces health insurance coverage or, on net, has no impact on coverage. Some of these regulations, however, presume that will regulations may change the risk distribution of the insured population, raising coverage among high-risk groups as well as also also individuals nevertheless lowering coverage among low-risk groups as well as also also individuals, with no significant impact on overall coverage. The studies also assumed that will insurance markets are competitive, as well as also also therefore, that will higher cost can be an inevitable effect of regulation. Smaller insurers with increasing returns to scale may respond differently to regulation than larger insurers with relatively constant returns to scale.
The effects as well as also also impacts of laws as well as also also regulations on the plans of businesses cannot be overemphasized as the above indicate. Recent insurance scandal in Britain’s oldest insurance company, Equitable, nearly caused its demise.Equitable’s crisis can be alleged to have commenced as a result of loopholes in regulation governing British insurance industry when that will emerged that will that will did not have sufficient funds to honour guaranteed annuity policies to a large group of policyholders. The immediate impact on the Equitable insurance was that will a court ruled that will that will closes all fresh businesses meaning a fall in services leading to huge debts as well as also also also lost of trust as well as also also market position to the insurance community as well as also also public as a whole which will inevitably force the mutual company to change its business plans as well as also also operations.
Throwing more light on This kind of article, a brief look of recent stories as well as also also reports might be appropriate.
An Oxfam report in Metro of February 9, 2004 edition, reports that will some companies particularly Tesco, Taco Bell as well as also also Wal-mart were accused of exploiting workers especially women within the name of lower production costs with unpaid overtime, low wages as well as also also unhealthy conditions as a result of lack of regulations.
within the UK, the recent spate of financial scandals leading to loss of pensions for retired workers has prompted the government to put forward a bill in parliament to avoid future loss of pension funds to retired workers.
Another story filed by Georgina Littlejohn in Metro of February, 23, 2004, alleges that will UK’s crumbling infrastructure can be holding back British businesses. that will can be claimed that will fresh Government measures announced in July 2004 to help boost transport efficiency within the road as well as also also rail sectors have failed to be an effective solution resulting in loss of “man-hours” with 37% saying that will lost time carries a significant impact on their businesses. This kind of costs the UK firms at least 15 billion pounds each year with each firm losing an average of 27,000 pounds.
This kind of can be a pointer to the fact that will regulations could also be costly to businesses as well as also also firms as well as also also can negatively or otherwise affect their business plans within the long run.
Nevertheless, that will can be important to say here that will the empirical results presented here, rest on few observations of laws as well as also also regulations as well as also also that will can be suggested that will further studies must be conducted to confirm these findings as well as also also opinions.
As the interests of business do not always coincide with the broader interests of society, governments might still have to intervene with laws as well as also also regulations to achieve goals additional than profits.