Analyze Eclectic Paradigm & UK Institutional Environment

This assignment requires a comprehensive analysis of the Eclectic Paradigm as detailed in 'The Institutional Environment' chapter (pp. 192-223) from Palgrave Macmillan UK. You are to examine how this paradigm interacts with various aspects of the UK's institutional environment, drawing insights from studies on financialization and company law, labor market regulations, big data applications, environmental decision-making processes, business law and legal environment, and consumer behavior in mobile viral marketing campaigns. The assignment aims to evaluate your understanding of the Eclectic Paradigm and its practical implications across diverse fields.

Business Law (Justice system)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P 1 ...................................................................................................................................................1
Sources of laws...........................................................................................................................1
P 2....................................................................................................................................................2
Role of government in making laws...........................................................................................2
M 1...................................................................................................................................................3
Evaluation of the effectiveness of legal system..........................................................................3
D 1....................................................................................................................................................4
Critical evaluation of the legal system........................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law also termed as company law consists of all the rules and regulations, the
company has to follow in order to form or run any kind of business. In UK, all the laws are
formed under Companies Act 2006 (Business Law, 2017). This assignment deals with various
sources like human rights and court of justice which the firm have to comply with. Further, it
will show the role of government in making those laws and the effectiveness of these in terms of
the development of legal system.
P 1
Sources of laws
Sources of laws can also be referred as the origin from which these are being made. In
UK, the laws are created in four different ways namely Case or common law, legislation, human
rights law and EU law.
Common law
These are made by the judges so that all the companies have to follow the same kind of
laws without being biased. These are the base of the legal system in UK. The aim was to create a
common system throughout the entire land so that it will cover all the circumstances. This will
make the statute non-specific and all the clarification given by the companies needs to be applied
all the scenarios in front of the court (Campbell, 2015). If the organisation wants to operate these
laws, they have to create or organise a hierarchy and operate as per the rules. The decision of the
higher court will be the final one, which cannot be changed.
Human rights laws
The act 1972 of European communities was passed, so that it will be recognised as the
source of British laws. The human right act 1998 became domestic, so that they are able to
incorporate the conventions of Europe in context with human rights. Higher courts are liable to
declare the statute incompatible with the act of human resource act (Collison and et.al., 2014). In
the situation of incompatibility, parliament can be forced to make changes in this law or repeal it.
This particular act of parliament will act as a cushion and it will provide a remedy to the
domestic law of UK in case of breaching of convention rights.
European Union law
This will work along with the domestic law. The government of UK has signed up under
the European communities Act 1972, and agreeing on the terms and conditions of EU. This is
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another source which will reduce the decision-making process of local or domestic law. This is
based on two treaties (Coulter and Hancké, 2016). One is Treaty of European Union and the
second is Treaty on the functioning of European Union.
Legislations
This is the chief source of any law. This will consist with the declaration with of all the
legal rules and regulations by a competent authority. In UK, these legislations will be consisting
of statutory instruments, Bye laws and order of councils. It can be considered that parliament of
UK is the supreme authority of law making having the exception of EU laws. All the legislations
created by the parliament will start in the form of bill (Cantwell, Dunning and Lundan, 2015).
These are of two types, public bills and private bills. Public bills are brought up by the MPs of
the current government and it will be having direct impact on the public. This will also include
the government bills in context of legislative initiative. This will be submitted to the parliament
for approval and after that only it will be declared as a law.
Private bills are bought up by the MPs which are not associated with the government.
They are prompted by such organisations who want certain kind of specific power. This kind of
bills will go through various stages like first and second readings (Tombs and Whyte, 2013). It
will be followed by the committee amendments and final stage will be through royal assent. If
the bill passes through all the steps, it will be declared as law. There are five types of bills taken
from the parliament of UK, they are Government bills, Committee bills, member bills, private
bills and Hybrid bills.
Pros and Cons of law
The advantage is that the common laws can be made quickly by the judge. Therefore, it
will be possible for the judge to take all the consideration into account. Another advantage is that
it will allow different people to apply for the compensation while facing any new situation. By
these sources thousands of cases can be analysed and read. The disadvantage is that these sources
are not stated clearly means that the structure is not managed. It can also be possible that Judge
can make wrong decisions which will reverse the decision.
P 2
Role of government in making laws
The government is having three core functions, one is to represent the interest of citizens,
second is to pass the laws and third one is to monitor the actions made by the companies. In the
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process of making a law, the first thing government has to do is make a bill and proposed in front
of the parliament. The parliament will be having both the houses, one is of the ruling government
and second one is of the opposing. The proposed bill has to pass through both the houses through
several steps (Morris, 2016). The first reading will be just an official note that new bill is
proposed. It will be arrived to the parliament. In the second reading, it will be passed to different
MPs for reading and examining. It is followed by the third reading where debate is being held on
the proposed bill and voting is conducted. If the bill gets majority and both the parties are
agreeing then it finally goes to the house of Lords. Here all the pros and cons are discussed and
all the amendments are being made. After receiving the royal assent by the Queen, that bill will
be declared as a law or Act of parliament.
Statutory and common laws, both are necessary to serve the justice. Common laws are
the decision made by the judges and Statutory are the ones which are issued by several agencies
of government. Common are also known as case laws and they are instructive and follow
procedural operational level (Lieberman and et.al., 2016). Statutory can also be named as written
law, they are perceptive and have to follow substantive operational level. They are passed by
federal and state governments, so that all the cities and towns are having the same power of law.
They are developed in order to solve the issues, meet the demands of citizens and to update the
already existing law. These laws will cover all the areas including those where case laws are not
applicable. They are also known as the act of parliament.
The process of common law in justice court begins with the research analysis followed by
the location of previous cases, extraction of statements and finally passed in order to apply. All
the decisions made by the higher court are the final one over the lower courts (Loafman and
Altman, 2014). Such kind of laws are developed on the regular basis. On the other hand,
statutory laws are already written and just need to implement on the specific case.
Pros and cons of role of government
The advantage is that the government will be able to create the law without making any
biased decisions. This will provide some help in extreme decision making processes. The passed
bill becomes the law which will be very strict. The disadvantage is that it will take more time in
making the law. The system will not be able to utilized all the sources because the law will get
stuck between the two houses.
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M 1
Evaluation of the effectiveness of legal system
All the rules and regulations can be reformed depending upon number of things like UK's
economy, political factors, social life etc. To develop more effective justice system means to
create more business-friendly environment with the help of installing confidence throughout the
entire business cycle. Some crucial implementation are also there in terms of EU laws, which are
used to strengthen the economic conditions, to build the mutual trust and to fight against
corruption (Lalor and Hickey, 2014). This will be having direct impact on the business
environment and public budget. Such kind of legal system will be helpful in identifying
shortcomings, developing good practices and improving trends over the period.
The evaluation of legal system in context of reforms and development is to identify the
challenges. This can be done by improving the efficiency of decision making, improving the
quality of justice system and also making sure that it will remain independent. The efficiency
means that the decisions made by the court should be as per the given time, so that it will not put
negative impact on the business, its investors and consumers. The improvement in the labour
laws, taxations and resolution of commercial disputes can also impact on the decision-making
process (Ravenswood and Kaine, 2015). Justice system have to make sure that all the
organisations are following the rules and regulations set by the government, so that it will be
easy for them to take effective decision in very short period.
The quality of the legal system is very essential in terms of improving the economic
performance of the organisation. To make any decision more effective, quality plays an
important role. This will include the case management system, training of judges, staff
monitoring and evaluation of the complete activities of court. Recent development in the laws of
UK, in particular companies Act 2006 shows that legal system is getting improved day by day
which will restrict the companies to do any illegal activities. The last thing to make the system
more efficacious is to make it more independent (Kim, Trimi and Chung, 2014). This is the
fundamental element in terms of an effective system. It will make sure that the decisions made
by the court are unbiased. Statute and Judicial decisions still remains the prime factors of laws in
UK. It can be considered that the effectiveness of legal system is heavily reliable on the judicial
interpretation in context with the actual implementation of different laws from European
directives.
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Discharge by breach of contract: This failure to perform the contract is having the breach
of contract. This means that the innocent party is not responsible and not under any obligation to
perform any action. But that party can end the contract immediately and sue the organization for
any damages. If the party is able to fulfil the obligations exactly in the same manner as it was
intended, then he will not breach the contract and it will end smoothly.
Financial service act 2012: This will be the act of parliament which is establishing new
framework for the financial services and financial system in UK. The prime function of this act
is to amend the Financial service and market act 2000.
Arbitration
Institutional arbitration
This is used in determining the administration processes. Each one is having their own set
of rules and their individual framework which can be helpful in assisting the processes. The
advantage of using this is, it will encourage reluctant parties to proceed with arbitration. The
rules are already available which ensures that the proceedings will run in timely manner.
Ad hoc arbitration
This is not administrated by any institute related to the government. All the parties are
liable to determine all the aspects of arbitration. The advantage is that if it is fully developed,
then it is the most cost effective and perfectly suited to the those parties having low economic
conditions. It is also very flexible, so it can be used in resolving the disputes. For financial
resources Institutional arbitration should be selected.
D 1
Critical evaluation of the legal system
The laws, rules and regulations are having three core issues, which can create some kind
of uncertainties in the well-developed framework. As per the governments choice for legislation,
it was directive, which will be in context with their respective legal system. However, it was
resulted in different approach of decision making to create a comprehensive legal framework.
The second issue was developed by the court for opting the wait and see approach (Real, Roldán
and Leal, 2014). Their aim was to watch the reactions made by other jurisdictions, but on the
other hand it was making them less effective and reducing their efficiency in decision making
approach. The last issue was the area of conservations which is failing in generating enough
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evidence to make the decisions. It can be clearly shown that all these issues are leaving some
significant mark on the development of laws on EU to protect the working environment.
The legal system of UK is divided into three different segments, i.e. England and Wales,
Scotland and Northern Ireland. As mentioned earlier, the main source of making the laws in UK
is based on the European Union. However, after the exit from EU, they are facing significant
problems in context of law making for taxation and foreign trading (Pescher, Reichhart and
Spann, 2014). The new and developed laws have to be followed by the companies in order to do
business, but it will surely affect the trading rates and profitability of the company. The
associations which are run by the government are also known as the public organisations. The
salary paid to the employee of this kind of companies are from the taxes paid by public. For
example, in UK people are contributing for the national insurance, this is funding the National
Health Services.
The legal system in UK is majorly dependent on the statutory law and common law. UK
is having their legal system in four countries, therefore it is very essential for the government to
pass such kind of bill which will be agreed by all the parties and the law must not have any
impact of Brexit on the legal system.
D2. Critical analysis of role of government in making laws
The evaluation of laws will also be based on the way they are being implemented. Many
of the government organisations are using these laws against local public, because most of the
people are not familiar with the rules and current laws (Caliendo, Fossen and Kritikos, 2014).
The government organisations have to make sure that people are aware about all the new
developed laws, so that they will not get affected. Further, it is the responsibility of the
parliament and both the parties to pass such kind of bill which will not influence the people in a
negative manner. The government will be making the laws so they are having the complete
control on the proceedings of those laws. The making of new laws will take time because all the
parties have to agree on all the aspects and finally the bill has to be passed through the load
house.
P5. Justifications for the use of appropriate legal solutions
The appropriate legal system is the one in which all the parties are following the rules and
regulations set by the government. The system should be such that all the business parties will be
having the same impact on their business. The developed law should not be biased in nature. The
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structure of the organization must be as per the defined ways. Further, it helps the organization to
increase their funds. The capital should be raised as per the type of company. This can be done
by issuing shares. The legal solution is when the liquidation is turned into cash, so that the debts
can be paid by the organization.
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CONCLUSION
From this report, it has been concluded that all the organisations have to follow all the
business laws in order to run their business. It has been found that legislation is the main source
of making any kind of law in UK. The bill passing process is very long so that it will not have
any negative impact on the business and the economy of the country. Further, the evaluation of
effectiveness of all these laws was done, which is majorly based on European Union.
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REFERENCES
Books and Journals
Caliendo, M., Fossen, F. and Kritikos, A. S., 2014. Personality characteristics and the decisions
to become and stay self-employed. Small Business Economics. 42(4). pp. 787-814.
Campbell, E., 2015. A dangerous method? Defending the rise of business law clinics in the UK.
The Law Teacher. 49(2). pp. 165-175.
Cantwell, J., Dunning, J. H. and Lundan, S. M., 2015. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. In the Eclectic Paradigm (pp. 192-223). Palgrave Macmillan
UK.
Collison, D., and et.al., 2014. Financialization and company law: A study of the UK Company
Law Review. Critical Perspectives on Accounting. 25(1). pp. 5-16.
Coulter, S. and Hancké, B., 2016. A bonfire of the regulations, or business as usual? The UK
labour market and the political economy of Brexit. The Political Quarterly. 87(2). pp.
148-156.
Kim, G. H., Trimi, S. and Chung, J. H., 2014. Big-data applications in the government sector.
Communications of the ACM. 57(3). pp. 78-85.
Lalor, B. M. and Hickey, G. M., 2014. Strengthening the role of science in the environmental
decision-making processes of executive government. Organisation & Environment.
27(2). pp. 161-180.
Lieberman, J., and et.al., 2016. Business law and the legal environment.
Loafman, L. and Altman, B. W., 2014. Going online: Building your business law course using
the Quality Matters Rubric. Journal of Legal Studies Education. 31(1). pp. 21-54.
Morris, H., 2016. 3 The Influence of Taylor on UK Business and Management Education. Re-
Tayloring Management: Scientific Management a Century On. p. 41.
Pescher, C., Reichhart, P. and Spann, M., 2014. Consumer decision-making processes in mobile
viral marketing campaigns. Journal of interactive marketing. 28(1). pp. 43-54.
Ravenswood, K. and Kaine, S., 2015. The role of government in influencing labour conditions
through the procurement of services: Some political challenges. Journal of Industrial
Relations. 57(4). pp. 544-562.
Real, J.C., Roldán, J. L. and Leal, A., 2014. From entrepreneurial orientation and learning
orientation to business performance: analysing the mediating role of organisational
learning and the moderating effects of organisational size. British Journal of
Management. 25(2). pp. 186-208.
Tombs, S. and Whyte, D., 2013. Transcending the deregulation debate? Regulation, risk, and the
enforcement of health and safety law in the UK. Regulation & Governance. 7(1). pp.61-
79.
Online
Business Law, 2017. What is Business Law? [Online]. Available through:
<https://www.hg.org/corp.html>. [Accessed on 3rd July 2017].
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