Category: Competition

The Ethics in Competition

Sports are an integral part of the lives of billions of people around the world, with most if not all types of sport bearing the use as an outlet of competition. Now then, competition in sports can be thought of as a contest with the goal or objective of defeating the opposition resulting in a zero-sum game as there can only be one side which wins and another side which does not, so goes the nature of competition (Simon, R. L., Torres César R., & Hager, P. F., 2019). To go along with this nature, it means that there is an overemphasis place on winning as the process of playing the sport is rendered nil in comparison to winning like that is where the value lies in this case with the losing party being considered a failure due to their incapability to win. The consequence of this might be that sometimes, competition can be thought of as completely immoral due to reinforcing the social value that only winning matters.

Competition itself is intrinsically self-centered because the purpose is to defeat the opposition although it may be more team centered at group type sports such as basketball, baseball, soccer, etc. Therefore the purpose of competition is to enhance the capabilities of a participant to ensure the victory by any means possible. However, this is not without limits as there needs to be a set of rules in place to ensure proper sportsmanship and fair-play (Simon, R. L., Torres César R., & Hager, P. F., 2019).

Normally these rules take form as a constitutive set of strict rules to define a legitimate guideline of possible moves within the boundaries of fair-play to prevent as much as possible unfairness and define the conditions of victory and defeat within the respective sports. This means that within competition there are a set of rules especially in the context of sports as the rules will specify different accounts of actions that may be taken as cheating within different sports since one rule set cannot cover the bases for the difference in how different sports are played.

Within the context of sports-based medication, the term doping is used to refer to a subject that has had an indication of the use of performance-enhancing drugs (PEDs), along with inappropriate use of pharmacologically active substances or abuse of certain medical therapies (Negro, M., et al., 2019). According to the World Anti-Doping Agency (WADA) substances or methods may be prohibited if it able to account for any two of the following three criteria: (1) the capability to improve performance in sports; (2) represents a potential health risk to the user; and (3) if it is determined to violate the the ‘spirit of sport’. The ‘spirit of sport’ concept is explained further within the fundamental rationale of the World Anti-Doping Code (Sumner, C., 2017). This meant that doping is already considered as a factor that violates the principle of sportsmanship

Competition and Consumer Law

The situation depicted under scenario A defines a tender process for the government of Queensland Beaujolais. The whole scenario related to dissolution of the state run courier and distribution of the relative service through private tenders. This process is a largely incorporated system of disintegration of services under a tender based obligation for the state based courier services. The essentials of this entire process is based on the Competition and consumer Act 2010 . This act signifies the availability of sufficient jurisdictional conservation to the customers as well as the companies operating across the product or service sectors in Australia. The fact that there are specific limitations in the ways of doing business and these specifications need to be assessed and acknowledged in context of the entire proceeding based over this particular act. The act provides consumers additional opportunities and that too in reference to smooth transition across the service segments . The overall operability factor which is based on determining effective results are put in to place under this act.

Scenario A describes a crucial process of corporations managing the competitive attributes that are related to a system of service management. The entire system of managing services under this scenario is impacted by their respective partnerships and alliance based operational structure. The fact that a tender process needs to be carried out efficiently and fairly is not at all liable under the available conditions. Two of the major service providing organizations have been involved under certain agreements and conditions that initiate breach of the part IV B of the Competition and Consumer Act 2010 . The misconducts are linked to Misuse of Market Power: section 46 Exclusive, Dealing: section 47 and Resale Price and Maintenance: section 48 of the Competition and Consumer Act 2010. The act suggests availability of strictly competitive ideology for promoting cost effective operations and increased service orientation across the organizations . On the other hand, companies involved under this particular agreement have decided not to compete with each other and have a self designed approach to the entire process of tender management. This is a complete violation of part IV B of the Competition and Consumer Act 2010 and thus cannot be undertaken. The overall operability index across this design segment is also based on limiting the competition factor across the sector and improvise the detailed orientation of adjectives all along the process. The limitations and obligations are based on identifying a less effective aspect for the common interest and a more self centred approach for the two participating institutions.

Decisions taken by the CEO’s of both the companies that are the Petasos Couriers Australia Ltd and All Queensland Deliveries Ltd are far from being in to public interest and thus are definitely not according to the part IV B of the Competition and consumer Act 2010 . Both the CEO’s have targeted exclusion of public interest and work ethics by complying over an agreement on their own. This agreement has several illustrations that signify the limitation of the act and its ineffectiveness. The introduction of this agreement entitled them with additional support factor for them and also initiated them with relative accomplishments which are not available generally . A major illustration of the irregularities which are available across the agreement can be assessed by acknowledging the clause 7 of the agreement 1. This clause clearly signifies that in case this agreement was not in place, there must have provided a much higher price range as compared to the current figure. In addition to this, acknowledgement of the fact that there are minimized competitive pricing across the related segments of services. The entire pricing process is to be carried out according to the agreement and thus there is a significant chances of irregularities which can occur with the availability of this particular agreement. The agreement limits the chances of competitive pricing, negotiation and benefits for the consumers. It also limits the entry of any new player under this industry and thus the overall operational accomplishments under this sector tends to enhance the entire resulting process and involves less fortunate advancements across the jurisdictions. Both of the companies involved under the agreement are responsible for exercising full control over the process of courier delivery and thus initiate a more advanced set of design attribute linked to the process.

This scenario describes a typical business structure that is put in to place for elimination of competitive attribute across the process of business management. The accomplishments and attributes for success are directly linked to each other and thus the illustrations under this section are perfectly justified all along the entire process of business management. The scenario describes attributes of an Australian online bookstore named BPL . This bookstore has been using its influence over two major courier service providing organizations named PCA and AQD. This initiative is put in to place for cutting the entry of a new online bookstore company named DPL that is backed by an American bookstore giant Congo Inc. The process used under this particular segment can be considered as less constitutional and law abiding as it limits the competitive attributes that are available across the respective regions. Each of the companies must be provided with sufficient supportive attribute to function independently and thus prohibiting them for attaining a responsive structure is more likely to affect the entire situation. The interventions carried out by BPL are a direct violation of the section 45(2) of Competition and consumer Act 2010 under the obligations of anti-competitive arrangements. The fact that there are significance based operational illustrations that are linked to assess the growing needs and requirements of the markets must be assessed by the companies and competitors available along the industry.

The activities carried out by BPL across the Queensland market by development of agreements are liable to signify the overall impacts and disassociate it from the legal framework of business conduction. The Competition and consumer Act 2010 provides equal opportunities to each of the fragments across a sector to flourish on the basis of equal opportunities and challenges . But the process carried out under the provided scenario describes a constant breach of the part VI A of this act. Thus, the whole process can be considered as less significant in accordance with the described attributes and association factorials. The overall operability index that is linked to the process of managing a competitive association is more likely to affect the process and indulge less liberal operational ideology across the online bookstore industry. In addition to this, the obligations that are put in to place justify the lacking competitive identity presented across the process. This signifies the entire framework and illustrates limitations that are facilitated to promote better decision making across the industry. Depriving of subordinate services to any new entrant by an established organization across a sector is not at all useful under an efficiently organized and competitive market . This is also directly related to influencing the strengths and opportunities under an organizational dimension. The availability of a fairly organized sector through competitive attributes are largely helpful in managing better product pricing and efficient service quality all along the process. Each of the participants across an industry have equal rights to indulge in to services or products facilitation and interruption from any of the relative competitors can be considered as unlawful as well as unethical. Thus the initiatives taken by BPL for controlling its traditional hold on the respective sector. DPL is liable to avail equal opportunities across the sector and thus is eligible for a better design across the industry in order to cope with the attributes put in to place by BPL. In addition to this, the initiatives taken by BPL are also liable to limit the services for available consumer strength.

BPL must undertake suitable approach for improving its operational expectations despite of indulging in to the agreements for limiting developments at DPL. The agreement is not only restricts the growth prospects for DPL but its also affects both the courier companies as they would have got better business while working with DPL. However, they are being compensated well by BPL, but the increase in organizational proceedings would have been largely helpful for the company. In addition to this, BPL is one section across this agreement process that has been taking on the additional burden of expenses which it has to pay based on the agreement. The entire process of this agreement based business limitation is liable to subordinate better accomplishment and attitude for helping the industry grow and eventually develop as a whole . In addition to the financial obligations, BPL is also liable to indulge under a strict legal framework as there are specific limitations that are intended to promote less complex competitive approach for the participants under this sector. Thus the obligations linked to the part VI A of Competitive and consumer act 2010 are violated and thus a smooth design must be put in to place for describing a better relativeness and coordination across the process.

This scenario describes an authorization based process that is put in to place for making decisions in an informed manner and achieving better understanding of the resource based approaches all along the process. The entire scenario is based on discussions for relative association and accomplishment of better understanding that is ideally placed across the delivery market comparisons . The website providing updated information across the delivery perspectives provides its users to include any lacking attributes and make changes according to the available scenario. As long as the information that is being provided is genuine and in compliance with the website’s regulations, there is no legal consideration involved. The entire process of managing the reach and accomplishment process is assessed across the website and a detailed report is provided. This particular factor is capable of providing the facilitators an equal and even opportunity for progress and customer acquisition. The platform is also helpful in being in to a whole engagement process and is liable to engage across defined attributes extensively . The whole structure of program is based on building a smooth transition and a functional process that is highly effective in acknowledging the changes and additions across the whole process of delivery management.

This process also helped in availing promotional attributes across the desired networks. Promotions are the basic developmental designs associated with a courier delivery company. As most of the operations are largely associated with the design segments and there are suitable amount of obligations related to the structure marketing and advertising, the companies can also provide innovation and creativity across its promotional aspects related to such comparative websites. Social media platforms and online website for comparisons based promotions can be the two major attributes which can be used by the company in order to avail efficient promotional obligations. The promotional process can be initiated with providing a desired range of diversity and inclusion of better technological tools which can eventually bring a major impact across the desired network of operation. The process of managing operational aspects for promotions can be sufficient to impact and associate better outcomes for managing diverse range of customers and the related promotional abilities.

Availability of controls at each subsequent level of operation is largely based on achieving better results in a marketing process. The overall operability index is based on amount and extent of controls which are involved in the process. Controlling these attributes are largely incorporated to achieve better design sections and suitable operability indexes for the whole process of operations management . The overall operability across these attributes are based on distribution of controls across executives and management personals. The entire structure of control system is based on designing the obligations and attract eventual outcomes and design attributes for associating the increased requirements across the sections. Controlled and coordinated operations are suitable for facilitating better design based inclusions and are liable to operate on defined perspectives across the business. Another major factor which is associated with the included marketing plan is based on associating differential designs and associations across control segments. Thus the whole system of obligation is linked to promote better control to the participant companies across the relative attributes. This initiative will also help the customers in getting improved services and a through undertaking across the industrial obligations.

In the second section of the assessment, it is desirable that there are limitations and attributes for formulating a distinctive amount of support to an acquisition process. The whole acquision process is liable to formulate and signify the growth possibilities all along the process. The decision made by the Australian Competition and Consumer Commission is based on sufficient evidences under the section 50 . This section describes the availability of sufficient possibilities for a merger process to be accomplished. The undertaking provided by Nutrien Ltd is sufficient to acknowledge the decision’s importance in making the whole process of acquision efficient. The entire structure that is linked to the whole sector is assessed ideally through including better results and achieving smooth transition through the industry. The Australian Competition and Consumer Commission’s decision for availing better responses are directly supported by the available attributes suggested by the two participating companies. The accomplishments are perfectly based on diversifying the challenges and retaining better outcomes for the entire acquision process . The availability of supportive attributes placed the foundations for finalization of the decision. The decision taken under this particular attribute must be kept in accordance with the described obligations and associate the design fragments for improvising the relative development inclusion. In addition to this, the review that is being reconsidered is not at all required and it can be eliminated. The entire process has been justified by the section 87B and thus it can be validated to promote better responsibilities all along the process. The obligations and attributed are perfectly framed and settled, thus there is not at all any reconsideration is required. If any further amendment across the decision is made, it would be considered as a major violation in terms of the section 87B that has been widely used earlier . The accountabilities that are linked to each fragment of decision is sufficient for justifying the approach and thus it needs to be intact based on the initial associations.

References

1. Buchan, Jenny, ‘HOW COMPETITION LAW MAY AFFECT FRANCHISED SMEs IN APEC ECONOMIES’ (2016): 156 Competition Law, Regulation and SMEs in the Asia-Pacific: Understanding the Small Business Perspective.
2. Auer, Dirk, et al., ‘ICLE Comments, The Current Landscape of Competition and Consumer Protection Law and Policy.’ (2018) FTC Project P181201.
3. Maher, Imelda, ‘The networked (agency) regulation of competition’ (2017): 693-710 Regulatory Theory: Foundations and Applications.
4. Klien, Joseph A., P. M. Rao, and Manoj Dalvi, ‘Competition and Consumer Privacy in the Cyberspace Market.’ (2018).
5. Ramaiah, Angayar Kanni, Ningrum Natasya Sirait, and Nucharee Nuchkoom Smith, ‘COMPETITION IN DIGITAL ECONOMY: THE STATE OF MERGER CONTROL ON CONSUMER TRANSPORTATION IN ASEAN’ (2019): 66-82 International Journal 2.7.
6. Manne, Geoffrey A., et al., ‘ICLE Comments, FTC’s Hearings on Competition and Consumer Protection in the 21st Century’ (2018) Kristian, ICLE Comments, FTC’s Hearings on Competition and Consumer Protection in the 21st Century (August 20, 2018).
7. Gissler, Stefan, Rodney Ramcharan, and Edison Yu, ‘The E ects of Competition in Consumer Credit Markets.’ (2018).
8. Lipsky, Tad, et al., ‘The Federal Trade Commission’s Hearings on Competition and Consumer Protection in the 21st Century, Innovation and Intellectual Property Policy, Comment of the Global Antitrust Institute, Antonin Scalia Law School, George Mason University’ (2018) 18-40 George Mason Law & Economics Research Paper.
9. Jora, Octavian-Dragomir, et al., ” Dialectical Contradictions’ in the Neoclassical Theory and Policy Regarding Market Competition: The Consumer and His Continuos Burden of Crisis’ 19.45 (2017): 544 Amfiteatru Economic.
10. Gorecki, Paul, ‘Reforming the Regulation of Household Waste Collection Services in Ireland: the Competition and Consumer Protection Commission Study’ (2019).
11. Federal Register of Legislation, Competition and Consumer Act 2010,

The Effect of Competition on The Result and Age

Competition is everywhere in our society. The study researches whether competition effects on the result of work and whether the age effects on competition. The study is progressed by 12 student participants in Prague, Czech Republic. It was hypothesized that competition would affect the result of work and the young age would get more influenced by competition. The results support that through competitive behavior, competition usually makes the development of the results of the test but the age is not related to competitive behavior.

Competitive behavior and Psychology

Nowadays, humans live in a competitive society, which means there are many competitions in our society. According to the dictionary (Cambridge dictionary), competition is a situation in which someone is trying to win something or be more successful than someone else. There are many perspectives on competitive behavior. To explain competitive behavior, evolutionary psychology is used for it. “Evolutionary psychology connects evolutionary principles with modern psychology and focuses primarily on psychological adaptations: changes in the way we think in order to improve our survival.” (David M. Buss, 2019). From primitive ages, every organism participated in competitions to survival and through natural selection, organisms should have competitive behavior to adapt to the new environment and to survive. (Charles Darwin, 2018). It has a prerequisite that humans have these characteristics and features because the species that have these characteristics have advantages to adapt to the new environment. With this prerequisite, it concludes as humans have competitive behavior due to this species have competitive behavior is advantageous to survive. For example, to be fertilization, 300 million sperms compete to be one with egg, and then only one sperm which wins in the race can be fertilization with egg. Human life starts with competition and end with the competition, and there are many competitions between our lives. Through this process, humans are born, and humans cannot help supporting competition by natural. Therefore, the experiment is about whether competition effects on the result of work and whether the age effects on competition. It was hypothesized that competition would affect the result of work and the young age would get more influenced by competition.

Participant

The study is conducted at Christian International School of Prague, which is CISP, Czech Republic. Six male and female participants between the age of 13 to 19 were selected by random sampling for the experiment, and all participants are from CISP students. Participants consist of 2 students from each grade from the 7th-grade to 12th-grade, so it became 12 participants. Participants in this experiment gladly accepted asks that taking two tests and the time for two tests was not limited.

Methods and Procedure

This experiment is divided into two small tests. Two tests test is prepared with five math questions, twelve participants, and a person who count time. participants are separated two people from the same grade in one group.

For the first test, a person who conducts the experiment asks one group of participants to solve five math questions and count the time when they finish. For the second test, most parts are as same as the first test, but the person lets participants know this time is competition between two people in one group.

Discussion

The purpose of this experiment was to know whether competitive behavior affects the result and any influence of age. Overall these results show that when the participants know they are in competition, most time that participants solve is decreased. In the first test, some participants discussed their questions and also they solved questions together, but in the second test, none of the participants speak and talk while they solve questions. Also, some participants who get some questions wrong in the first test get more correct answers in the second test. In addition, there is no big difference in the gap between the two results between the young age and the old age. However, there are some differences in their behavior between the young age and the old age. Young age students have more competitive behavior when it was a competition while old age students usually do not care about the competition and they already knew that it is not a big project or grade. Through this experiment, the results support that competition affects work and work is developed with the competition, but not the influence on the age.

With memories from childhood, humans get many positive reinforcers such as compliments, prizes, gifts and so on when humans win in a competition. Through these experiences, make humans want to win in a competition or have competitive behavior and want to get reinforcers. In this situation, reinforcers are conditioned stimulus and competitive behavior is conditioned response. Therefore humans and animals are practiced in competition and try to do their best when it is competition.

References

1. BUSS, D. A. V. I. D. (2019). Evolutionary Psychology the new science of the mind. Place of publication not identified: ROUTLEDGE.
2. Christiansen, F. B., & Loeschcke, V. (1990, January 1). Evolution and Competition. Retrieved from https://link.springer.com/chapter/10.1007/978-3-642-74474-7_13.
3. Competition. (n.d.). Retrieved from https://psychology.jrank.org/pages/135/Competition.html.
4. COMPETITION: meaning in the Cambridge English Dictionary. (n.d.). Retrieved from https://dictionary.cambridge.org/dictionary/english/competition.
5. DiMenichi, B. C., & Tricomi, E. (2015, September 1). The power of competition: Effects of social motivation on attention, sustained physical effort, and learning. Retrieved from
6. Evolutionary Theory and Psychology. (n.d.). Retrieved from https://www.apa.org/science/about/psa/2009/05/sci-brief.
7. Stefoff, R., White, T., & Darwin, C. (2018). Charles Darwins On the origin of species. New York: Atheneum Books for Young Readers.
8. The Psychology Behind Competition: Why Incentives Work. (2018, August 15). Retrieved from https://www.gavelintl.com/psychology-behind-competition-incentives-work/.

Competition as an Effect on Society

Competition is becoming the daily routine of every person. At every situation people has to suffer through competition because of the fast pace life style people has been adopted these days. People have to compete at work, in family, in schools and in society. Winning and losing are parts of competition. Competition has changed the perspective of viewing a task. People do so hard to be the best among all. Competition has great influence on society in different sectors like education, business, production and many more. It helps people to be more creative and be a critical thinker, these qualities are more admirable then being common thinker. So, Competition is helping society to develop and grow. Despite the fact that business is being corrupt to meet the competition level, competition has been affecting society in positive way, because it has raised the education standard and it helped in enhancing productivity and quality of the product.

Education standard has been raised because of competition. As the education level has been improved, the society is also being developing. Through the competition in education system it becomes easier to choose the deserving person for the right positions, which results in growth of society in different sectors. Walsh said, “grades reflect higher school or peer quality, or could strategically value higher grades for college admissions” (Walsh, 2010, p. 3). In his report he explained how the inflation in grades in educational system influence the competition among the students. Inflation in grades directly linked with the competition toughness. Students and colleagues compete with their competitors in order to gain higher scores or positions in their fields. In this whole process society is benefited indirectly because with the increase in competition among them, society has many best options for different roles to be perform. According to the requirements society, schools, and colleges could choose best fit for those roles. Not only this also through competition there is another benefit to the nation at biggest level is that with this there is constant increment in literacy rate. To get the better jobs people start going to get higher education, with this the literacy rate of countries start rising which also contributes to the make countries develop. Competition has been toughening up through some measures which calculates the ability of the candidate. Walsh also mentioned that “first measure, the “grade cutoffs”, captures interventions in the mapping of a score onto a letter grade, and is reported by principals at the school level. The second measure, the “assigned grade”, captures the total output of the entire grading process and is given by the student’s high-school GPA” (Walsh, 2010, p. 4). Education is not only a platform where competition has been made, Business is also one of other sector where competition could be clearly.

Competition has increased the market productivity and the quality of the product. Competition as like in education sector also profited the business sector in some other ways. As with the increase in productivity of products the market of production will gain profit. A nation with more productivity with gain more gain more profit in comparison to other countries which would help to boost up the economy of the country. Ambashi describes “The first idea is that the more competitive markets generate a higher pressure to survive, or that firms exposed to fierce market competition are forced to improve their productivity” (Ambashi, 2017, p.215). Competition in market influence the seller and producer to produce the product of better quality. With the better quality of products, it will help society in two different ways. First people would like to buy the better-quality product which would help the market to grow in comparison to other and will help to improve the economic condition of the country. Secondly, if people would consume a better-quality food product, it will automatically improve their health condition. People with health could create a better society. Competition among marketers not only help the produce market to expand but also leads to a healthy nation. Moreover, competition helps in learning new skills to survive in the business market. “there is much to learn from competitors”(Mccormick,2016). it clearly states that watching others strategy for learning from that strategies help the businessmen to improve their products and helps them to make good reputation in the marketplace. There is nothing wrong in adapting other’s ideas into your business plan if it is helping businessmen in boosting up their business growth. But this competition among the business men leads to some unethical activities and maybe kind of stress. losing and winning are both important parts of our life. People do not learn much by winning but losing teaches us the most important lessons in life. So people who lose in the competition should take it positively and learn from the experience they gain. Based on these learnings they should try to improve themselves. Therefore , competition is providing great opportunities for learning.

Competition creates the disturbance in business through unethical attempts. As some of the people in this competitive world try to do their business without investing much. They want more profit with small investment, in order to achieve that some people try to sell products at market prices for the similar products which is not worth because of its poor quality. To save some money few business men reduce the quality of the product and sell it at same price to gain more profit. Victor said “increased competition leads firms to provide an illegal form of quality to attract and retain customers.” (Victor, 2013, p.1738). Illegal form of quality refers to not acceptable condition or quality of product which could cause harm to the human or to the nature. Even the cars are not completely inspected which is a government law. So that the pollution and emission of dangers gases could be reduced but people for their own benefit passing the vehicles without going through proper inspection process. Government had enforced some laws against those business runners. But enforcing laws is not sufficient, it should be implemented properly and charges should be strict and penalty must be in big amount so that people would commit such illegal activities.

To conclude, Competition is really a great thing. Competitive spirit make a person more independent. Competition is effecting society in positive manner instead of negative way. It does have some negative point too but it totally depends upon people how they are taking competition in their personal life. Many people taking competition as fear of losing something tgat takes away the competition spirit from them. However, Many people realise their potential only after competing.Healthy competition is important at all the places. The feeling of competition helps in bringing the best out of the people and promotes growth. Without competition things become boring and monotonous. However, jobs that are very critical like that of a doctor or medical practitioner should not have any competition as it’s involves saving lives of people. Any competition in such cases could pose a great risk to someone’s life. In nutshell, competition helps in getting persuasive results.

Cooperation versus Competition

Charles Darwin put forth a theory of evolution driven by competition and natural selection, where the individual best suited for the environment will succeed while those less suited for the environment will fail. Using empirical examples from the field of evolutionary biology, I will show that species who work in groups will suppress this competition in favor of cooperation. By utilizing cooperation, the individuals will be promoting the average success of each individual, and the overall success of the group. This view, while not fully going against Darwin’s beliefs, frames the relationships between individuals and groups in a way more closely related to the beliefs held by Native American individuals.

I have come to see two contrasting opinions on the relationships between individuals. One viewpoint put forth by Charles Darwin in his journal titled The Origin of Species, is that life is driven by competition. Darwin described his travels to the Galapagos Islands where he discovered a range of new species that exist nowhere else in the world. One of the examples which Darwin utilized was his observation that there were many different species of finches on the island. Each of these species of finches had adapted unique beaks depending on their food source. He believed the finches developed their unique beaks with small changes over thousands of years. This, Darwin believed, was fueled by the competition amongst the finches to get the most food and survive.

The contrasting viewpoint, a belief held by many Native Americans, is that life is cooperative. They believe that you must live with reciprocity. In other words, never take more than you need, and if you take always give back to ensure there remains a balance in nature. The reasoning behind this is that if all you do is take then at a certain point all of the resources you need for survival will run out. For example, when a fungus sweeps through a forest, sucking the life from and killing all the trees, not only will it eventually kill all the trees, but it will also die out because it will no longer have a host to live off of. Instead, if there is a give and take relationship where both parties are benefitting, it will ensure the survival of everyone/thing involved.

I believe that, in the right circumstances, competition may drive cooperation with certain species. This would occur if it is in the best interest of the individual to be associated with a larger group. This group can consist of individuals of the same species (wolves, lions), individuals of different species (badgers and coyotes), or even a couple species working together (dolphins and birds.) For the examples I gave above, it is more beneficial for the individuals to work in a group than by themselves. By reducing the internal competition in the group, they increase the efficiency of the group and the average success of the individuals in the group.

To show the benefit of cooperation over the competition we can examine the relationship between a badger and a coyote when they hunt ground squirrels. Each individual possesses a unique trait not held by the other. The coyote, who is adept at hunting on the surface, can efficiently pounce on any ground squirrels that pop their heads up. However, the ground squirrels just have to scurry into their underground tunnels to avoid this looming threat. On the other hand, the badger is a master at digging and navigating underground which allows him to push the ground squirrels up towards the surface. By working together and utilizing their respective talents they can get more ground squirrels then they would have by hunting alone.

However, this cooperation does not remove the competition from the equation. Even though the badger and coyote are working together they are still competing against the ground squirrels. So the competition is just changed from individual competition to a “team” competition. On top of the competition with the ground squirrels, there is also continued pressure for individuals to compete with one another in their group. This internal competition is especially true when there is a social hierarchy in the group and the presence of an “alpha”. In organized groups to prevent this competition from getting out of hand, the competitive individuals are often kept in check by “policing,” which is the suppression of competition by selected individuals in the group (Frank.)

Steven Frank, who is a professor of biology at the University of California Irvine, put forth the mathematical model: r < 1 - c, where r is the relatedness of the competitive individual to the group and c is the cost to the individual who is policing. This model represents Steven Frank’s claims that “as relatedness declines, selfishness tends to increase, causing a drop in group efficiency and the average success of each group member.” (Frank.) As a result of this decline, policing is increased because it promotes the wellbeing of the group and the policing individual. While this model is a highly simplified version of the actual relation, it does show a good surface-level view of the amount of policing occurring in a group.

Even though this phenomenon of cooperation in and between different species is interesting, it is still imperative that we study whether or not it holds for humans? Determining intrinsic human nature has been a focal point for countless philosophers throughout history and, in recent times, even scientists. While there are many different complex aspects of human nature (thinking, feeling, acting, etc.), the topic becomes simpler when you only focus on one: in our case competitive versus cooperative nature. The overwhelming consensus is that humans are cooperative beings. However, according to Robert Boyd, an American anthropologist who has focused his research on evolutionary psychology, this was not always the case. Boyd believes that we started much like other social primates, but then over the last million years, we adapted to work together and to pass on information. This gradual change arose from natural selection in favor of more sociable and cooperative individuals.

Boyd’s beliefs can also be applied to different civilizations that have been built over the years. Due to the minimal interactions between these developing societies, they each developed differently with unique cultures and ethics. These cultural differences have been the center of countless wars throughout history, with each war resulting in the victor imposing their own cultures on the loser. We can easily see this today when we compare two different countries like the United States and Japan for example. In this situation, the technologically advanced United States forced open trade in Japan which allowed the American culture to quickly invade Japanese society. These conflicts perfectly illustrate the competitive versus cooperative battles occurring internally inside each of us and even reinforces Frank’s theory which I discussed earlier. These conflicts show that we are more inclined to cooperate with others if they share a culture/history or if they share a common goal. Alternatively, if we have little or nothing in common, we instead compete with each other for land, resources or power.

If we are naturally competitive, what is it that we have developed over the million years of natural selection? To examine this development we must take a closer look at the situations from which cooperation was initially formed. In the earliest stages of human development, we lived in small groups of between 50 or 150 people. (Loch) A side effect of these groups being so small is that if there was an uncooperative individual it would not only put the individual but the entire group at risk. However, this reasoning is not sufficient to justify all human behaviors. So, to supplement this reasoning, Loch asserts that the development of human emotion was critical in developing the complex social structures that we have today. This belief is backed by an abundance of empirical data derived from the odd psychopaths that pop up in society. These psychopaths lack the emotional feelings held by your typical person, and, in many cases, these psychopaths threaten our societal structures.

The development of emotions, like anger, disgust, fear, sadness, and happiness to name a few, not only allow us to develop more intimate relationships with our peers and loved ones, but they also guide our decisions when a new situation is encountered. These emotions also cause us to feel empathy for other individuals. They are the reason why bystanders oftentimes intervene if they see someone in need of help, even in possibly dangerous situations, and why society overwhelmingly rejects those who go against the status quo.

In conclusion, while competition drives the development of individuals who survive on their own, those individuals who instead live in groups suppress this competition in favor of cooperation. This cooperation allows not only for the betterment of the group but also allows for a higher level of average success for the individuals in the group. In humans, this cooperation was developed alongside the development of emotions to ensure cohesive societal relationships. It is through this cooperation, that humans were able to form larger and larger groups: first establishing tribes, then civilizations, then countries. Maybe one day we may even establish a unified planet, but, despite all of our developments, we still have a long way to go.

The Role of Competition in our Lives

Introduction

Competition is a fundamental and pervasive factor in human existence, influencing behaviors, fostering innovation, and impacting outcomes in different areas. The invisible hand influences market dynamics, motivates individuals and organizations to exceed their limits, and tests the durability and adaptability of entities. In nature, competition for resources like food, territory, and mates has played a significant role in natural selection, resulting in the evolution of species and the diversification we see today. Conflict in human civilization takes various forms, ranging from friendly rivalry in sports and academia to intense conflict in business and politics. The pieces aim to explore the complex nature of competition and its effects on human development, society advancement, and ethical considerations. By analyzing competition from several perspectives, we may gain a deeper insight into its impact on promoting growth and innovation, as well as acknowledging the possible drawbacks and obstacles it brings.

100 Words Essay about Competition

Competition, which is a natural part of society, is a strong force that drives innovation, improvement, and success. There are many areas where it works, such as sports, academia, and business, pushing people and groups to go beyond their limits. Competition can lead to new ideas and progress, but there needs to be a balance to keep things fair and encourage healthy strife. In its most basic form, competition not only pushes us to do better, but it also teaches us important lessons about sticking with something, planning ahead, and being honest. Rivalry is healthy as long as people are honest and treat others with respect. This creates a dynamic climate that is good for growth and development.

250 Words Essay about Competition

The idea of competition is complex and affects all aspects of human contact. It encourages growth, new ideas, and excellence. Individuals, teams, and organizations are driven to push their limits and aim for peak performance because they want to get better. Competitive sports help kids get better at being athletic, working as a team, and thinking strategically. In school, competition helps kids learn more and get smarter. Companies have to come up with new ideas, make their products better, and provide better customer service in order to stay ahead of the competition in the business world.

However, competition is not without its challenges. It can induce stress, lead to burnout, and sometimes foster a win-at-all-costs mentality that undermines ethical standards and fair play. The key to harnessing the positive aspects of competition lies in promoting a healthy competitive spirit that values effort, improvement, and integrity over mere victory.

Competition can also be a great way to teach people how to be tough, flexible, and know the importance of hard work. It shows who you are, pushes your limits, and often helps you find out more about yourself. In a wider sense, competition helps society move forward by promoting technological progress and economic growth, which is good for everyone.

In conclusion, competition, when approached with a balanced perspective, can be a powerful force for personal and collective advancement. It encourages us to rise to challenges, fosters innovation, and, most importantly, teaches us the value of striving for excellence with integrity and respect for others.

400 Words Essay about Competition

Competitiveness is an ever-changing and widespread part of society. It shapes people, spurs innovation, and affects progress as a whole. It can look like a lot of different things, from friendly competition to fierce rivalry between global companies. This multifaceted idea, which is deeply rooted in human nature, drives us to excellence, creativity, and self-improvement, promoting progress both personally and socially.

In the realm of education and sports, competition serves as a motivational force, encouraging students and athletes to harness their potential and strive for excellence. It instills discipline, fosters a strong work ethic, and teaches valuable life lessons about perseverance, teamwork, and the importance of goal setting. The thrill of competition and the desire to excel not only enhance performance but also contribute to personal growth and character development.

In the business world, competition is the engine of innovation and economic growth. It compels companies to continuously improve their products and services, adopt new technologies, and explore creative solutions to meet consumer needs. This relentless pursuit of excellence results in higher quality, greater variety, and more affordable options for consumers, driving forward technological advancements and elevating living standards.

However, the nature of competition demands a careful balance. While it can inspire greatness, unchecked competition can lead to unethical practices, stress, and a win-at-all-costs mentality that undermines the very essence of fair play and integrity. The challenge lies in fostering a healthy competitive environment that encourages positive engagement, respects rules, and values the process as much as the outcome.

Competition also plays a significant role in shaping our social fabric. It encourages diversity of thought, innovation in problem-solving, and resilience in the face of challenges. Societies that embrace healthy competition tend to be more dynamic, adaptable, and forward-thinking, driving progress in science, technology, and culture.

Moreover, competition can foster a sense of community and shared purpose. Whether in team sports, group projects, or community initiatives, working together towards a common goal can strengthen bonds, build trust, and encourage a sense of collective achievement.

In essence, competition is a double-edged sword, with the power to both uplift and unsettle. Its value lies not in the act of competing itself but in how it is approached and the lessons it imparts. In this light, competition is not merely about winning or losing but about striving to be the best version of ourselves and collectively pushing the boundaries of what is possible.

500 Words Essay about Competition

Competition, a fundamental aspect of human existence, is woven into the very fabric of society, influencing our actions, decisions, and the progression of civilizations. It exists in various forms, from the benign rivalry among peers to the cutthroat competition in global markets. This multifaceted phenomenon, while often associated with strife and conflict, is also a powerful engine for growth, innovation, and excellence. It drives individuals to surpass their limitations, compels organizations to innovate, and pushes societies to evolve.

In the educational sphere, competition is a double-edged sword. It can motivate students to achieve their full potential and foster a spirit of resilience and determination. Academic competitions, debates, and contests encourage students to deepen their knowledge, hone their skills, and engage with their peers in intellectually stimulating environments. However, it’s crucial to balance this competitive drive with collaborative learning, ensuring that the pressure to compete does not overshadow the importance of knowledge for its own sake.

In sports, competition is the heartbeat of every game, match, and race. It not only showcases physical prowess and strategic thinking but also embodies the spirit of fair play and sportsmanship. Through sports, individuals learn to set goals, work as part of a team, and handle both victory and defeat with grace. This arena of competition is a microcosm of life’s broader challenges, teaching invaluable lessons about perseverance, teamwork, and the pursuit of excellence.

The business world thrives on competition. It is the catalyst for innovation, pushing companies to continuously improve their products, services, and operational efficiencies. In a competitive market, businesses must stay ahead of the curve, anticipate consumer needs, and adapt to changing technologies and trends. This relentless pursuit of improvement drives economic growth, leads to the development of new industries, and enhances consumer choice and quality of life. However, the drive for market dominance must be tempered with ethical considerations, ensuring that competition promotes overall societal well-being rather than exploiting it.

On a societal level, competition can be a force for social and technological advancement. It encourages diversity of thought, fosters creativity, and stimulates progress. Societies that value and promote healthy competition often see rapid advancements in science, technology, and the arts. Yet, it’s essential to foster a culture where competition encourages collaboration and collective problem-solving, ensuring that the benefits of competition extend to all members of society.

The spirit of competition also extends to the realm of ideas, where it can lead to vibrant debates, the clash of opinions, and the eventual synthesis of new philosophies and innovations. This marketplace of ideas is crucial for the evolution of cultures, political systems, and ethical frameworks.

In conclusion, competition is a pervasive and dynamic force that shapes individual character, drives economic and technological progress, and stimulates societal evolution. Its value lies not in the act of competing but in how it is harnessed—promoting growth, excellence, and innovation while maintaining ethical standards and fairness. In this way, competition becomes not just a pathway to personal and collective achievement but a journey towards a more vibrant, diverse, and flourishing human community.

Relationships of Cooperation and Competition between Competitors

Abstract

In this article, we are elaborating the various relationships that exist among competitors both on an activity and resource level as well as on an individual level. The firms will have different roles in different activities and interactions. Competitive and cooperative activities can in some cases be in conflict with each other. If a firm should choose to either cooperate or compete, or if it should try to combine competition and cooperation, has therefore become a strategically important issue. In the article, discuss the importance of cooperate or compete of different firms.

Introduction

Cooperation between competing firms has become an important subject for research. The purpose is to get a better understanding of coopetition, the occurrence of simultaneous competitive and cooperative behavior between firms and how the formation of coopetitive ties have an influence on the market value of firms. By this, an implication can be made about the effects of coopetition on the attractiveness of a market.

Coopetition is a relatively new subject in strategy research and it needs its own developed body of research. In the early 80’s, the research has started by focusing on long-term cooperative relationships between buyers and sellers in a vertical setting. It has been argued that the common goal for involved buyers and sellers have been to create new capabilities by combining their resources and activities. In order for long-term relationships, the involved actors have moved from exchanges to the creation of bonds by making adaptations and investments.

Relationship of cooperation is different from the relationship of competition. Cooperative relationships are accumulated a mutual interest to support each other and interact without restraints. Relationships between cooperating firms are usually visible to outsiders. Such that some small and medium sized firms mostly lack of resources and need subsequently to cooperate with others, but at the same time they have to challenge their opponents, in order to survive. These relationships are constructed on a distribution of activities and resources among characters inserted in the same business network.

On the other hand, competitive firms are forced to interact with each other. Competing relationships are conflicting, as the benefits for the involved characters usually cannot fulfilled simultaneously. Competitors frequently try to avoid direct interaction whereas buyers and sellers try to maintain the interaction. Competitive relationships are more casual and invisible in that informational and social exchanges are more common than regular economic exchange.

In the early 90’s, initial research was conducted on the relationships between competitors in horizontal settings. There are different types of relationships that exist between competitors, but there are needs to develop the framework to make the possible grasp on the complexity of a firms multiple relationships with their competitors.

The aim of this paper is to elaborate on the content of relationships between competitors, by accounting for the different layers of a business network, which are related to each other in an atmosphere of competition and cooperation. There are three different layers of importance when analyzing business network which is;

These different layers was established by Håkansson and Snehota in 1995. The actors or the individuals that are involved in the activities are also important for the relationships that develop among competitors.

The reason for firm to participate in coopetition is that the firm desire to cooperate with competitors when they want to take advantage of opportunities in their markets that require greater resources than the firm owns to achieve the opportunity individually. Examples are responding to a market demand for a new type of product which a firm can fulfil by expanding its current range of products and entering foreign market. There may be two problems which might be;

• Lack of production facilities in individual firms to expand on their own.
• Lack of knowledge about a country they want to enter with their products.

In this situation, it is more convenient to cooperate with a competitors that is similar in resources and has common interest in the market opportunity. So competitors cooperate with each other to complement the necessary resources to achieve the market opportunity.

Factors influencing the formation of coopetition

The effects of coopetition on the value of firms is discussed to get a better understanding of the conditions that might influence the formation of coopetition. The reason is that the formation of coopetition ties is found to be affected by various contextual factors which are described below;

• Environmental Factors
• Firm Size
• The cost of cooperation

Environmental factors: A firm’s coopetitive behaviour might be influenced by the environmental context of a firm including the degree of rivalry, availability of resources and market opportunities. For example, in an environmental context where there are lots of opportunities and sufficient resources to transform in competitive advantages there will be little motivation for firms to compete intensely or to cooperate with one another because the costs will likely outweigh the benefits.

Firm size: Small and large firms have less cooperative ties with competitors than intermediate size firms have. Small firms are limited in their ability to form cooperative ties and they have limited motivations to be cooperate because their impact on competition in the industry is low and often specialized forte companies. Large firms have more resources and capabilities to deal with opportunities and uncertainties on their own.

The cost of cooperation: When a firm participates in too many cooperative relations with competitors, coopetitions may fail to improve the competitive position of the firm when the costs outweigh the benefits of the cooperation because of the added complexity and the costs of performing joint tasks with a partner.

Background

From a competition viewpoint, coopetition is seen as a competitive move to deal with modern competitive content. A coopetition relationship can be familiar when two or more competitors form an association with each other. The basic principle of an association is that each participating firm needs the other firm to progress on their individual interests.

Conclusion

This article is to write for the development of a body of research on competition which is acknowledged as a necessity by various researchers. We discuss the relationship between cooperation and competition with coopetition. By this different firms can be compete with their competitors to facilitates their companies and also discuss the different layers of relationships of a firm.

References

1. Bengtsson, M., & Kock., S. ”Coopetition” in Business Networks—to Cooperate and Compete Simultaneously. Industrial Marketing Management 29, 411–426.
2. Garrette, B., Castaner, X., Dussauge, P. (2009). Horizontal alliances as an alternative to autonomous production: product expansion mode choice in the worldwide aircraft industry 1945-2000. Strategic Management Journal, (30), 885–894.
3. Gulati, R. (1998). Alliances and networks. Strategic Management Journal,19, 293–317.
4. Ali, A., Klasa, S., & Yeung, E. (2009). The Limitations of Industry Concentration Measures
5. Constructed with Compustat Data: Implications for Finance Research. The Review of Financial Studies, 22 (10), 3839-3871.
6. Baretta, A. (2008). The functioning of co-opetition in the health-care sector: An explorative analysis. Scandinavian Journal of Management, 24, 209-220.
7. Garrette, B., Castaner, X., Dussauge, P. (2009). Horizontal alliances as an alternative to autonomous production: product expansion mode choice in the worldwide aircraft industry 1945-2000. Strategic Management Journal, (30), 885–894.

Competition: is it Healthy?

Being a risk taker, being principled, and being caring are traits that both Rudy and the MYP learner profile traits have in common. At the start of the movie, Rudy shows that he is a risk taker by traveling to South Bend in the middle of the night to see if there is any way he could play on the football team (Anspaugh). He took the risk to leave his job and his family and everyone he knows and loves to go and try pursue a career in football, a topic which he is very knowledgeable in, which is yet another MYP learner trait. Rudy shows excellent principles and determination when he continues to go to practice and go to all the games, even though he’s smaller than everyone else and is constantly being pushed around by his fellow teammates, and when he sees that his girlfriend is with someone else, he takes it with dignity and accepts that it was his fault for running away and leaving her all alone (Anspaugh).

Rudy also shows excellent balance by accepting and realizing that in order to excel at football, he must also excel in education, and continuously gets good grades throughout his time at Notre Dame. While Rudy portrays and excels in many of the MYP learner traits such as balancing, being principled, and risk taking, he fails to exhibit other traits such as reflecting and communicating. While at practice, Rudy fails to reflect on his abilities and that ends up with him getting injured multiple times because of his refusal to accept his limitations. Rudy also fails to exhibit communication, as he is seen lying to a girl he likes and constantly trips on his words. Overall, Rudy exhibits many MYP learner traits, he fails to exhibit all of them.

Competition is often seen as either good or bad with little to no in between, with the good aspect often being ignored in order to highlight the bad. Having competition at a young age can help encourage and teach kids about valuable lessons such as persistence, how to cope with stress, and healthy relationships (Admin). However, competition, like everything in life, is good in moderation but too much can lead to dangerous consequences.

Competition has so many positive influences on people, and the example of positive influence of competition is myself. From ages 2-14, I was in a competitive soccer league that helped shape who I am today. I am a naturally competitive person and I absolutely loved being able to go out on the soccer field and be better than everyone else on the field and be the best midfielder on the team. Soccer have me the ability to get out my anger and it made my push myself to be the best I could be, and

I made some of my best friends on my soccer team. However, the most important lesson I learned from soccer was how to lose, and that has helped me throughout all of my life, knowing that I will not always be the best and that I cannot win everything in life and being okay with it is one of the most valuable life lessons I have ever learned and helped me push myself to be the best I could be.

While competition helped me in so many ways, it doesn’t always have a positive influence on people. Katherine DeWitt was an exemplary student and gold medal track star at Penn University who contemplated suicide after a 60 on her calculus final resulted in her inability to major in mathematics like she had planned. She was not the only Penn student who thought that suicide was the only way out, as there was a string of 6 Penn student suicides in a 13 month stretch. All the deaths occured because the stress and competition of good grades got to student to the point that they felt death was the only way out of their situation (Scelfo).

Competition is often viewed as good or evil, with little in between. Little kids thrive of of competition and it allows them to try and be their best in a healthy and carefully observed way, and it helps teach them how to lose, a very important skill. In the movie Rudy, Rudy has an unyielding will and dream of being able to dress for and it is the competition that drives Rudy to be the best he can be and eventually leads to him achieving his dream of dressing for a Notre Dame game (Anspaugh).

Unlike adults, children are unable to truly understand how truly competitive the worlds is. From job interviews to college applications to getting in line at the grocery store the quickest, everything in life is a competition, regardless of whether or not it has a major impact on your life (Draisin). Healthy competition should be encouraged in youth by means of sports teams, extracurriculars such as speech and debate, or mental sports such as chess and puzzle competitions, but it should never push children past their comfort limit or feel as if the competition is the only thing that they have to live for.

Competition should not be the main driving point in a person’s life, instead it should be more like Rudy. Rudy had competition as a driving force and helped him accomplish his dreams, but he never pushed himself to the extreme causing himself to severely injure himself (although some minor wounds were inflicted). Overall, competition is absolutely necessary in children and adults, and a healthy amount of competition in later life is highly beneficial to a healthy and balanced lifestyle.

Effects of Competition in the Emotional Stability

A study conducted by Jean Twenge revealed the rampancy of depression among high school and college students, which is five times more than that of the number during the era of the Great Depression in the 1930’s. “This is a very dangerous time for our young people. We’re seeing more anxiety and depression in children of all ages,” Kathy Harms, a Staff Psychologist at Kansas City’s Crittenton Children’s Center, said to Portland Press Herald.

One of the reasons identified for the spike of depression and anxiety cases among students is the presence of competition in education. Studies conducted in China, Europe and the Americas concluded that under competitive conditions, students are more likely to compromise and even sacrifice learning opportunities, for the sake of proving one’s competence and superiority over others (4). Such leads to surface learning, and disrupts the learning process of students (1).

As recognition of who performed best, who performed worst, and who performed just the average is not a new story to tell in competitions, students are usually left with feelings of discontent and inferiority which were concluded by Gilbert et al, as the links to depression and anxiety. As cases of depression related to academic pressure continue to rise, increase in suicide rates among youth is probable as depression stands as the major cause of suicide attempts (McCarthy et al, 2008).

Effects of competition also extend from the competitor himself, to the manner he interacts with his fellow competitors. According to T Dong, the social atmosphere in classrooms is greatly affected by competition. Pressure, and tension even, are likely to arise between and among students whose views about competition differ. Learning and development gaps among students can also exist, as not all students are comfortable and effective under competitive learning settings (5).

Despite the downsides of competition in education, many still argue that with proper and mindful application, competition can be healthy. Competitions in various disciplines is one of the strategies educators use to make learning engaging, discourage complacency and encourage improvement as everybody’s goal (10). Hence, students under competitive learning settings have increased motivation and determination, and exerts more effort and participates actively in class endeavors.

“Small disappointments help children become more resilient,” Tamar Chansky, a child psychologist said. More than competition challenges the intellect and skills of students, competition also tests their resilience and self-regulation. In such way, students’ interpersonal skills (3) are developed- their ability to take delays in satisfaction, resist frustration, and adjust with the demands of certain situations. Moreover, with the presence of competition in all aspects of life, its presence in the education system prepares students to become adaptable and flexible of the competitions ahead of them, as professionals and drivers of economic growth.

In Rizal High School, students of all grade levels are involved in different forms of competition, from class-based rankings to multi-level competitions held inside and outside of the school. Thus, it is important to address if competition provides a conducive learning environment for Rizalians, or disrupts their emotional health and learning capacities. The researchers have chosen this topic to promote effective and healthy learning environments for students, where they get to receive holistic development, towards being intellectual and emotionally healthy individuals.

Relationship between Merger, Acquisitions and Competition Law

Abstract

Mergers and acquisitions are regular and necessary phenomena of the business world and is the bone of contention with respect to the competition law which is studied in this very paper. Mergers and acquisitions have their own advantages such as they help to achieve economies of scale, operating efficiencies, management efficiencies. Mergers and Acquisitions are the modes of corporate restructuring and the synergy is the foremost incentive for it. Synergy is generated by strategic integration of two entities ensuing economies of scale, cost cutting, spreading risk, tax sops, elimination of competition, gaining access to new technology and expanding product of service offerings etc.

Mergers and acquisition are methods of corporate expansion. However there is a continuous debate on the subject matter with respect to competition in the market. There are two sets of arguments one is that mergers increase power of reducing competition or swallowing the business competitor, this type of merger is known as horizontal merger. Merger also increases bargaining power of a company. However other argues that mergers and acquisitions are integrations which help companies in diversification of business areas and exploring new vistas in new sectors etc. Therefore an effort has been made to analyze mergers and acquisition as to whether there are adverse effects of corporate mergers and acquisitions, which leads to monopolies and to what extent mergers and acquisitions should be controlled and its interplay with the competition law in India i.e. how and to what extent Indian Competition Law helps in striking a balance between corporate consolidation and protection of economic interests of the society.

In nutshell it is aimed to find advantages and disadvantages of mergers and acquisition with respect to competition in the market and whether competition law plays a complementary role in the process of corporate consolidation. Mergers and acquisition are advantages for the organization as a tool of corporate restructuring and for the market also, and competition law plays a complimentary role in the furtherance of merger and acquisition and does not unnecessarily act as an impediment in the way of mergers and acquisition.

Introduction

Mergers & Acquisitions (combinations) mean any situation in which the ownership of two or more enterprises is joined together. In business world joining of ownership may take many different forms, and may be either amicable and consensual, or unwelcome and hostile. In India Mergers are regulated under the Companies Act and also under the SEBI Act. With the enactment of the Competition Act in 2002, mergers also come within the ambit of this legislation. Does it not appear that too much of legislations on one topic? It does appear so yet there is necessity for having different legislations to regulate mergers differently. In the Companies Act mergers between companies inter alia essentially tries to protect the interests of the secured creditors and in the SEBI Act it tries to protect the interests of the investors. Apart from protecting the interests of private parties, the objective of them is different or mutually exclusive. In the Competition Act the objective is much broader. It aims at protecting the appreciable adverse effect on trade-related competition in the relevant market in India (AAEC).

Let us consider an illustration. Air India and Indian (erstwhile Indian Airlines) have combined. Consequent upon that, the market share of the combined entity has increased considerably. The enhanced market share may cause:

• i) barriers to entry to other competitors; (competitors may not have market to trade)
• ii) rise in passenger fares;
• iii) poor quality of service

On the contrary, it may not cause any concern at all if we look at the following factual issues: i) passengers have wider choice (Jet Airways, Spicejet, Kingfisher, Air Deccan, Indigo, Go Air, foreign airlines etc.); ii) with wider choice, the combined entity may not be able to create entry barriers; iii) in order to maintain an optimal passenger base (for successful and viable business venture) the combined entity may have to provide competitive level price for tickets and maintain highest or at least similar levels of quality of services that its competitors would extend. So, in Companies Act and SEBI Act, though both are mutually exclusive yet aim to protect the interests of private individuals. Whereas, in the Competition Act, the impact of combinations directly affects the market and the players in the market including the consumers. We may, therefore, safely say that apart from the fact that all these legislations are mutually exclusive, the Companies Act and the SEBI Act are the sub-sets of Competition Act in so far as legal scrutiny of mergers are concerned.

Background and Evolution of Competition Law in India

Monopoly imposes heavy costs in every society. It is a conspiracy against the public to raise prices. It hates competition because competition lowers prices to a level which is fair, honest and earned under competitive environment. Adam Smith spoke of ‘the wretched spirit of monopoly’, the ‘mean rapacity, the monopolising spirit’ in which ‘the oppression of the poor must establish the monopoly of rich.’ Monopoly is exercised through market shares gained by buying up or bullying the present competitors out of, and the potential from, the market. The purpose is to earn maximum profit at the cost of consumers and rival competitors, more than the natural profit which the fair and free competition endures. It also destroys efficiency and discourages innovation. On the other hand, competition enhances consumer choice and promotes competitive prices, with the result society as a whole benefits from the best possible allocation of resources. That’s why most countries in the world have enacted competition laws to protect there free market economies-an economic system in which the allocation of resources is determined solely by supply and demand.

The competition law of India was previously contained in the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act). This Act was formed as a result of ‘command and control’ policies adopted by Indian government after independence. The government intervention and control pervaded almost all areas of economic activity in the country as India followed the strategy of planned economic development. The companies needed license for everything from setting up an industrial understanding, to its expansion or layoff of workers and closing it down. The era was also known as ‘License-Raj.’ The out come of the ‘License-Raj’ system was restriction of freedom to entry into industry which ultimately resulted in concentration of power into few individuals or groups.5 Thus, MRTP Act came into existence in 1969 to control such monopolies. The word ‘socialist’ in the Preamble to the Constitution of India has been embodied with a high object. The principal aim of a socialist state is to eliminate inequality in income, status and standard of life.6 The genesis of this Act is traceable to the Preamble of our Constitution and Article 38 and 39 of the Directive Principles of State Policy.

Mergers under The Competition Act:

The term Merger has been used broadly in the competition act as to include amalgamation and acquisition of shares and control over the assets and the voting rights of an enterprise. Merger is a kind of event which brings tremendous change in the management of the affairs of one enterprise by another enterprise. Through merger one enterprise is entitled to exercise control over the significant part of the assets and the decision making power of the other enterprise. Merger is an ordinary activity which takes place between the business entities in order to expand their business. Merger is considered to be a significant activity for the enterprise as it provides the enterprises to run their business on a large scale.

But there are certain mergers which are considered detrimental and adversely affect the competition. The most negative impact of merger is that it leads to the reduction of competition in the market by reducing the number of entities in the market. Merger between entities also leads to the increase in price of the goods and services which prejudicially affects the interest of consumers as the merged enterprises exercises full control over the market and restrain the entry of new players in the market which confers on them the advantage of limiting the output and restricting market access.

Kinds of Merger

• Ø Horizontal merger –This type of merger takes place between the enterprises that are engaged in the trading of similar goods and services. It mainly takes place to improve the market share and to carry out the operations of the enterprises on a large scale. This kind of merger has an adverse affect on the competition as it creates collaboration between the enterprises pertaining to pricing of the good and limiting the output.
• Ø Vertical Merger -Vertical merger is a kind of merger in which enterprises are engaged in different stages or levels of production chain in different markets, in respect of production, supply, distribution, storage, sale or price of, or trade in goods or provision of services.
• Ø Conglomerate Merger – Conglomerate merger is a kind of merger where two enterprises that merge together are involved in different kind of business.

The significance of conglomerate merger is that it helps the merging companies to enhance their activities and strengthen their financial position. There are two kinds of conglomerate merger, the first one is known as pure conglomerate merger which basically takes place between the companies who are doing business which is not related to each other. The other kind of conglomerate merger is known as mixed merger which is a kind of merger in which the main object of the enterprises are to expand their business and to gain market access and to increase the range of their products.

Reason Behind Mergers And Acquisitions

In the recent years mergers between the enterprises has rapidly increased. The point listed below discusses the main reason behind increased mergers taking place:

• i) Market share- Companies amalgamate to reduce competition and to gain dominant position in the market. The increase in the market share helps the enterprises in exercising their will and limiting the production and increasing the prices.
• ii) Large economy- One of the most important significance of merger is that the scales of the business entities are enlarged and they carry operations on a large scale which in turn leads to the generation of huge amount of revenue.
• iii) Diversification- Diversification leads to the increase in the trust of the consumers as diversification yields fruitful earnings for the companies.
• iv) Tax consequences- Companies amalgamate to evade tax. So it is one of the major factors which are considered while granting the order to merge as tax evasion creates loss of revenue to the government and prejudicially affects the economic development of the country.

Merger Control in India

Though the competition act came into force in the year 2003 but the provisions pertaining to anti-competitive agreements, abuse of dominant position came into effect in the year 2009. In the year 2011 proposal for the amendment to the provisions to the merger control was made by cci after consulting law firms, business entities and the stake holders.

In India Merger as a part of the combinations has been defined in section 5 of the competition act and the provisions relating to the regulation of the combination is defined in section 6 of the Act. Merger is an ordinary practice in the business world. It has several advantages like increasing efficiency and economy but there are several detrimental effects of merger. The effects are so severe that there was need felt to control merger. Any merger is considered to be prejudicial if it causes “Appreciable Adverse Effect” on competition. The term appreciable adverse effect has not been defined in the Competition act but any kind of merger having this effect is prohibited under the competition act. Section 20(4) of the Competition Act, 2002 provides the substantive test whether the combination has or is likely to have ―appreciable adverse effect on combination -. The substantive test encompasses examination of certain factors incorporated in the above section.

Some of the factors are:

• a) Restraining entry of new players in the market
• b) Advantage of the combination to the economy of the country
• c) Extent of elimination of competition from the market.
• d) The availability of substitutes in the market.
• e) Whether the benefits of combination outweighs the adverse effect on competition.

Analysis of The Role of Competition Commission

Competition commission of India is a significant body of the Government of India. It is accountable for the enforcement of the competition act, 2002. Competition Commission plays an imperative role in preventing adverse effect on competition in India. Competition commission acts as a market regulator of all the sectors and primarily draws focus on curbing the anti-competitive practices which is detrimental to the competition. Competition Commission of Indiais empowered to take cognizance of the anti-competitive practices prevailing in the Indian market.

The Competition commission was established on 14 October and came into effect on May 2009.

Duties of Competition Commission

Competition commission has been entrusted with several duties under the competition act 2002. The primary duties of the competition commission are:

• To eliminate practices having appreciable adverse affect on competition
• To maintain competition in the market.
• To promote freedom of trade and eliminate any constraints in the entry in the market.
• To protect the interest of the consumers and to eliminate all the practices prejudicially affecting the interest of the consumers.

To persuade new entities to enter in the market for producing better quality of good and delivering better services. Competition commission is also required to give its opinions on vital matters affecting competition or any reference made to it by the statutory authority. It is also the duty of the competition commission to create consciousness among the public and impart training facilities on competition issues.

Section 18 of the competition act deals with the duties of the competition commission of India.

Conclusion

Combinations whether in the form of mergers, amalgamations or acquisitions are very important for a developing country like India. They provide numerous advantages to an economy like India in the form of diversification of business, increased synergy, accelerated growth, tax benefits, improved profitability etc. They enable foreign collaboration through cross-border mergers and enable companies to withstand global competition. But on the other hand, they may lead to monopoly or create barriers to entry and similar anti- competitive practices. Therefore, they need regulation. The need to swiftly permit such mergers which are beneficial to the economy and prohibit anticompetitive ones has led to the formulation of merger control regime all over the world. In India, mergers were regulated under the MRTP Act, 1969. But the Act had become obsolete in the light of international economic developments and was replaced by the Competition Act, 2002. The provisions relating to combinations came into force recently on 1 June 2011. The CCI also notified the implementing combination regulations effective from the same date.

The Act and the Regulations together constitute the merger control regime. The gradual succession from the MRTP Act to Competition Act is one of the most important milestones as far as economic reforms in the field of competition law in the country are concerned. By shifting the focus from the stage of merely ‘curbing monopolies’ in the domestic market to ‘promoting competition’ the competition regime in India has attained recognition for its progressive ways.

It provides for pre-merger notification, review and remedies in the form of modifications which if applied effectively can play a crucial role in regulating mergers. The merger control provisions are designed in such a way to prevent mergers that are likely to have an appreciable adverse impact on competition.

With the FDI policies becoming more liberalized, Mergers, Acquisitions and alliance talks are heating up in India and are growing with an ever increasing cadence. They are no more limited to one particular type of business. The list of past and anticipated mergers covers every size and variety of business — mergers are on the increase over the whole marketplace, providing platforms for the small companies being acquired by bigger ones. The basic reason behind mergers and acquisitions is that organizations merge and form a single entity to achieve economies of scale, widen their reach, acquire strategic skills, and gain competitive advantage. In simple terminology, mergers are considered as an important tool by companies for purpose of expanding their operation and increasing their profits, which in façade depends on the kind of companies being merged. Indian markets have witnessed burgeoning trend in mergers which may be due to business consolidation by large industrial houses, consolidation of business by multinationals operating in India, increasing competition against imports and acquisition activities. Therefore, it is ripe time for business houses and corporates to watch the Indian market, and grab the opportunity.

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