Essay Sample on Business Management: Law and Strategy Concept

Introduction

One principle in business management is developing the right strategy in maintaining a competitive advantage in the industry. With the changing business environment, it is necessary that firms identify opportunities that make them stay ahead of others in relation to changing consumer demand. One of the key concepts that are key in helping businesses remain competitive is adopting the right legal strategy and interacting with various legal agencies. This is referred to as strategic management. Federal administrative agencies have the power to makes rules that are biding and as effective as those ones made by the Congress. However, the agency does so by following guidelines provided by the Congress. The issues that are dealt with by these agencies require expertise which might be missing in the Congress. Furthermore, the lack of continuity in Congress makes it necessary to have agencies to deliberate on particular issues. An example of such agencies is the Securities and Exchange Commission (SEC) which among many other functions protects investors. Apart from the sec, The Small Business Administration (SBA) can be applied by businesses in the development of sustainable competitive advantage.

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While the Securities and Exchange Commission (SEC) protect investors by ensuring they are adequately informed, the Small Business Administration (SBA) aims specifically at the interest of small businesses (Laskin 2). The other aim of the SBA is to maintain and safeguard a free competitive business investment. Finally, it aims at reinforcing and preserving the overall business economy (Luoma 5). In as much as these two agencies may be having different aims, they are interdependent in that both aim at ensuring and realizing the welfare of investors. A similarity in the two agencies is that both touch on small businesses. For example, if a small business decides to offer a public debt, then it must file a registration statement with the Securities and Exchange Commission (SEC). This links the two agencies.

Small business can apply the Small Business Administration (SBA) in management strategies, particularly in terms of finance and marketing. The United States has a huge number of investors, ranging from small business investors to multimillion companies. To maintain a competitive advantage in such a business environment, a small business can apply the Small Business Administration (SBA) agency in a number of ways (Mandel 169). Notably, some of the challenges facing small business, apart from being overshadowed by multimillion investments include natural calamities and accidents, inadequate capital and lack of competitive advantage in government procurements (Mandel 170). These challenges have hindered fare competition for a long time.

The Small Business Administration (SBA) has been successful not only in offering loans to small businesses but also giving huge direct loans to victims of natural disasters in small businesses (Mandel 169). The Small Business Administration (SBA) in 1958 established the Small Business Investment Company (SBIC) Program which was mandated with the responsibility of granting funds to private investors (Vaughn 499). Furthermore, the agency through the Equal Opportunity Loan Program (EOL) made more relaxed requirements on small business application and registration. This has gone a long way in helping the establishment of many businesses (Small Business Administration). Finally, the agency has been pivotal in ensuring that small businesses procure government contracts. This has enabled small businesses to retain a competitive advantage with other companies.

Conclusion

In conclusion, federal administrative agencies help in developing binding statutes similar to the Congress. Over the years, a number of agencies have been developed in the United States. Examples include the Securities and Exchange Commission (SEC) and the Small Business Administration (SBA). The SBA is one of the administrative law agency that small businesses can apply in developing legal strategies that will help them maintain a competitive advantage in the changing business environment. These strategies include effective marketing strategies and strategies in the acquisition of capital.

Works Cited

Laskin, Alexander V. "Securities And Exchange Commission (SEC)." Wiley Encyclopedia of Management, 2015, pp. 1-3.

Luoma, Patrice. "Small Business Administration (SBA)." Encyclopedia of Business Ethics and Society,

Mandel, Allan S. "Small business, banks and SBA loan guarantees: Comment." Small Business Economics, vol. 4, no. 2, 1992, pp. 169-170.

Overdahl, James A. "Securities and Exchange Commission (SEC)." Encyclopedia of Business Ethics and Society,

Small Business Administration, www.sba.gov. Accessed on 8th November 2018.

Vaughn, Donald E. "Development of the Small Business Investment Company Program." The Journal of Finance, vol. 17, no. 3, 1962, p. 499.