Neoliberalism is an economic policy that advocates for the control of market services in order to strengthen and expand organizations. Neoliberalism has had an impact on the world's social, economic, and political systems, both positively and badly. In this paper, I will discuss the benefits and drawbacks of neoliberalism in strategic management. The work will contain many dimensional arguments depending on the questions posed and highlighted in the essay. The first case will lend credence to neoliberalism in terms of strategic management assistance. Then the last portion will focus on its disadvantage to the neoliberalism then we will continue the emphasis on the solution of its challenges, then conclusion.
Benefits of Neoliberalism in strategic management
Neoliberalism has affected the operations of strategic management in both positive and negative way in the society. Specific positive impact of neoliberalism includes, influences the market system, empowerment of enterprises, Strong customer and consumer relationship in the market, and empowers globalization and bank accumulation of wealth (Pappas, 2016, p.97). About strategic management, neoliberalism has also caused challenges such as the creation of social disasters, poor consumer market understanding mechanisms and economic degradations. The above factors have led to both improving and declining strategic management in the society today.
Neoliberalism, in other words, is related to issues which surround economic policy; it has the basis of protecting the market with the aim of expanding its services. Through developing the services in the market, neoliberalism has discouraged the government agencies, producers, and companies from interfering with the strategic management of the economic arrangement of the country.The technique has also allowed enterprises to increase their production increasing the profit level. The policy will bound the interaction of customers and the producers in the market. The above points, answer the questions whether neoliberalism affects the economic, strategic management of the country. In my opinion, the answer is entire no, based on the factors of economic empowerment that the system has created in the country. The policy also has empowered the relationship between consumers and their producers, to come up with the fundamental agreements.
Has Neoliberalism supported the strategic management of the corporations in the country? Based on my opinion, I agree with the fact that neoliberalism can improve cooperatives in the country. The company has empowered the bank services creating an organised system between the nation and the cooperative operations. The most significant bank also continues to receive wealth by increasing they're financial, economic welfare. Furthermore, customers can acquire loans services in their daily business operations. The idea of delivering loans by the bank will motivate customers in starting essential business activities. About that, the banks will create useful customers relation and eventually expand their services to the most country. Neoliberalism has built a customer based budget where banks corporations focus on their welfare. However, the strategy will also lead to the collapse of the smaller banks services in the most countries.
In the past years, there have been questions whether free trade agreements policies have been strengthening by neoliberalism. Based on my opinion, I accept that free trade agreements have been boosted through neoliberalism techniques. Moreover, more countries practicing neoliberalism have signed these contracts to achieve smooth transactions of trade services in the country. Some of the countries which have embraced the system include Republic of Korea and United States of America (Scott, 2017, p.167). There have been smooth transactions in their business in the two countries in their business corporation. The free trade agreements will allow consumers with low tariffs in the competitive markets to access their products. Has the policy permitted smooth delivery of merchandises in the market? Entirely yes, since customers of whichever level can purchase products in the market at affordable cost. Also, customers from the free trade agreements regions can enjoy buying the product without any limitations involved. More countries in the world right now have upheld the neoliberalism system in their projects. This is because the system also offers benefit and strengthening their customers’ needs and requirements in the country.
Is neoliberalism encouraging globalization among the countries in the world today?. The answer is yes, the system also has brought togetherness from most of the countries in the world today. The correlation between businesses among these countries has created mutual connections making it easy to trade in the market. Moreover, European nations have formed this global movement that has created a systematic trade within the republic. There are some benefits that globalization has generated to this state’s economic, political and even social development. This makes it even more appealing for the government administrations to embrace these techniques in their systems. According to the released statistics, there have been over 75% of growth services experienced among these countries (Stokes, 2017, p, 170). This point has increased the interest of more countries to embrace neoliberalism in their system with the aim of boosting economic strengths. The factor also brings us the questions of what importance do neoliberalism plays to you as a citizen of the country.
According to the research which was carried out from the member countries practicing neoliberalism was that, it has led to conservation of the environment and natural resources. Furthermore, regions emulating the system have enjoyed a massive growth regarding their environment development systems. The funds in the areas also are appreciated uniformly, making it useful to create more opportunities for other people. About that more resources are created making it easier for members of the public to develop their economic strengths. The strategic management of the organisations also will improve tremendously making it even easier for the managers to create more resources for their control. As I am speaking now, there are over 80% of organisations that have employed efficiently more staff due to their systems (Ward, 2017, p.169). A significant number of institutions have come out and support neoliberalism to be practised in their operations. The above move by the managers was encouraged when they realised their strategic goals and standards are catered for in the organisation. In the meanwhile, neoliberalism will create stability growth in the economic empowerment of the country.
Additionally, neoliberalism has improved the creativity and innovations of its affiliates from one sector to the other. Creativity is a very vital factor since more youths can come up with ideas on how to create job opportunities. The scheme will empower the citizens with knowledge on how to be at the forefront in developing their systems. As a person, I respect the fact that neoliberalism has created enough opportunities for employment hence reducing the rate of unemployment in most countries. There is over 80% of the youths who have directly received help opportunity from the service of neoliberalism(Sharma, 2017, p.49). This number is even expected to be higher in the future years according to the report released by world trade associations.
The societies in which we live in require people of vision and goals in life. Neoliberalism offer goals and insight concerning the strategic management of an organisation or parastatals in the society. The goals and ideas of a person are represented in this structure since he or she will be in a position to emulate proper character to achieve them. Neoliberalism has initiated action plan services which have created the revolution in the industrial sectors in the world today. Countries like America are at the forefront of deliberating laws and create public awareness campaigns to educate people on the importance of the services (Jain, 2017, p.57). In my opinion, I also understand how vital the neoliberalism movement can be to the citizens of the world today. The initiative should be advocated in public institutions to win the hearts of the people in the country.
Challenges of Neoliberalism on strategic management
On the other hand, Neoliberalism also has a serious of problems which affect the operations of the important command of an organisation.Basically, in my opinion, every opportunity has both advantage and disadvantage in the groups. In these sections, we will focus on the effects of neoliberalism and how they interfere with the market structure in the world today. These challenges include exploitations, war profiling, wealth disparity, structural adjustments, resentments alienations, customer opinions and societal disintegrations. These factors affect the strategic management operations also from one way or the other.
About the advantages which are shown in this paper, neoliberalism also causes specific problems in the strategic management systems. One of these issues is that it has increased the gap in between the rich and the poor in the society. The wealth disparity between the rich and the poor has resorted to the creation of fluctuation in the prices of commodities (Bhardwaj, 2017,p.53). This has led to the creation of unbalanced market standards ratio making it harder to control the market system. In some regions, the disparity has led to the creation of slums household making it hard to improve the livelihood of the citizens. The rich also have the feeling of being superior to the inferior making it hard to have a collective classified society. In my opinion, I have this feeling that neoliberalism is an essential system which needs to be taken with caution. The competitions in the market system by the rich and the poor have channeled to the increase in the gap between the rich and the poor.
Neoliberalism also has resulted in unemployment in the social system this is because people with exceptional ability are in an upper hand of acquiring the best opportunities in life. The fewer ability individuals will not be in a position to survive in such economic structure since availability resources will have been consumed. Many families will suffer from one point to the other since the government will not be in the position to care for their job needs. More attention will be taken to other services such as creations of globalisation and international correlations, making it difficult for the government to cater to the needs of everybody (Tymon, 2013, p.843). Most of the industries can suffer significant collapse since more resources will be preserved on international markets. The available job opportunities in most recent times will decline this is because the level of resources will fluctuate.
Additionally, the neoliberalism will result in culture degradation causing a country to loose its original way of life. More people will be interacting coming from all corners of the world. Social assimilation will kill the internal culture since there will be the variety of cultures among different people. The free trade between different countries will affect the market's facilities. Most the youths will embrace cultures from different regions it hard to understand the original customs among them. Lack of religion in a country destroys country originality in that future generation will lack their creativity (Sharma, 2017, p.50). The society will disintegrate making it hard to unify the people together.
In the case of business misunderstanding among different countries, this can result in conflict causing severe damage to the country’s economic system. Most of the instances when conflict arises is when one violates the terms and conditions of the free trade business. Battle in the market can either be cold war or world war depending on the relevance of the nature of the problem. About cold war, two countries will cut down the business relations among them. There are severe consequences of this decision since it will affect countries economic, social and political growth. In case of conflict war, more properties will destroy leading to displacements of more people. Conflict is not by any way helpful in the wellbeing of a country since significant investors will flee the country.
The customer’s strategic management plan also will be interrupted, by the international correlations attention on the outside markets. However, customers will perceive to lack the best quality products since neoliberalism will tend to divert the concentrations. The locally produced products will not meet the preference and choice of the customers. Most consumers will manage to look for the best quality from other countries which eventually kill the local market. Clients in any industry love to see when their interest serves first. There should be some measures which neoliberalism policy should uphold in their systems. The main agenda of the strategies is to come up with an efficient method of caring for the needs of the individuals in the market.
Insecurity is one of the most dangerous factors to the welfare of the business development to any organisations. Neoliberalism can paralyze economic, social and political of society by allowing terror groups to invade the country. Since there is that social interaction between different people in the country, it makes it hard to trace these terrorists. In case the terrorism invades the states, this will make it even harder for international countries to trade with the country. Most governments that practice such a system are warned to protect their citizens from terror based attacks.
In this sections, we will address how to solve the above challenges which countries were practising neoliberalism faces in their day to day activity. We will only focus on the main effects and their difficulties in relations to the strategic management of the country. These problems include closing the gap between the rich and the poor, controlling unemployment rate and globalization management. By finding the root solutions of this factor an organisation or even a country will find it much easier to strategies it's management policies.
Solutions to Neoliberalism problem
The following challenges can be solved through one of important factor which is that the government should take care of its market systems. Firstly, the government should be in the forefront of ensuring that the poor get the required financial resource opportunity to survive in the society (Scott, 2017, p.169). If the country only focuses on neoliberalism system the poor people will not be in a position to gain economic stability. So the governments should create a resource base market to allow the low-income people to acquire economic dominance. In that case, poor people will be in a position to feed their families without difficulties.
Unemployment that affects countries in general, I believe is the duty of every person to request for reforms in the legislation to create the required opportunities. However, through advocating for such policies, most livelihoods will be changed making it much easier to solve unemployment disaster. Finally, there should be a policy on the globalization rate in the country. Globalization can perceive to be both negative and positive about the country’s economic growth. So through controlling its services, the state can preserve its culture and reduce insecurity services.
In my opinion relating to neoliberalism, it has improved strategic management of an organisation for the better. The market system of most of the countries has expanded and intensifies creating more job opportunities for the citizens. Neoliberalism has impacted to both the social, economic and even political nature of the nation. Neoliberalism has created chances such free trade business, liberal movements, resource recreation, market developments and customer satisfaction in our society today. However, there are some disadvantages of neoliberalism in the strategic management of a country. Some of the challenges include market disparity, unemployment and globalization mismanagement. The points in this paper, have a certain that neoliberalism is very important in the economic prowess of a nation.
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