Political Environment of Firms Essay Example | Topics and Well Written Essays - 1250 words

Political Environment of Firms - Essay ExampleBrazil Aerospace It got started when the government gave technological support to hush-hush firms through the Centro Tecnico da Aeronautica (CTA) naturalised in 1947 in Sao Paulo, being the most advanced research institution among the industrializing countries. The render allowed private ownership to the production of aerospace but gave the technological support and change magnitude allocation of resources in science and technology. The partnership between the public and the military allowed the advancement of the industry (Goldstein, 2022, pp. 525). For national security, Brazil could not depend on merchandise military equipment and it could not also allow them to be produced by immaterial manufactures, the industry was owned fully by the government but was governed by private law and was managed by a competent autonomous management that created good relations between the management and the Ministry of Aeronautics. The ministry mad e the local environment complimentary repayable to financial, fiscal, marketing, regulatory and international responsibilities. The firm also got financing through a state development bank which benefited from tax holidays. Production began in 1970 with the support from foreign partners and negotiated co-production and licensing in order to achieve faster market penetration by assembling other those producing high-tech components. The two best seller planes were national flesh although most parts were imported. The company also collaborate with many firms to supply final components. The strategy which worked is the partnership between the multinational corporation, local private entrepreneurs, and state owned enterprises that had accumulated huge resources. The company also focussed on the export market and allowed longer production runs and stimulated customers to bring in sunrise(prenominal) ideas for technical change and the demand for exemplary performance standards. The airc rafts were sold to Middle East markets and the foreign exchange was important. This success continued up to 1990s when some other model was launched. The worsening economy led to conglomeration and new ownership designed a new organization charts (Lebouc, 1980, pp 43). The Aerospace of Indonesia It was developed by an individual called Habibie after completing a doctorate in engineering who returned in Indonesia in 1974 and was appointed by President Suharto as Research and Technology Minister in 1978. Habibie argued that an aerospace was a strategic national necessity and that technological excellence was necessary for achieving national independence as well as acceleration for economic stimulation. This would bunk to cultural and political integrity. Although Indonesia has shallow technological base with underdeveloped capital goods and weak domestic capabilities, to absorb and produce technological goods the minister decided to jumper lead into full assembly. He took control o f the procurement of the industry and he has good government finance control (Makka, 1996, pp 123). The international manufacturers saw an attractive Indonesia market and MBB licenced IPTN to assemble a helicopter and other smaller aircrafts. The first assembly was in 1983 and despite the many difficulties certification was secured from the U.S. and many Muslim countries. This gave Indonesia a bunch of prestige. The IPTN strove to become an international subcontractor and at sometime, Boeing sent over 50