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Business Challenges – Regulations and Government Policies

18 January, 2010, Business - No Comment

Business challenges are aplenty at all levels. Business, on a small scale, would perhaps be an entrepreneur’s dream. At a slightly bigger scale, there are business partnerships, where expectations of the partners and other stake holders would have to be met. When the business is as big as, say, Sun Microsystems or Oracle, there are numerous stakeholders in the business, and business strategies that involve takeovers have to satisfy more conditions than one.

Government Regulations pose many business challenges. While the deal that involved the takeover of Sun Microsystems by Oracle had its hiccups in the US initially, it was ultimately cleared by the US Regulatory authorities. Then, it was the turn of the European Competition Commission, which had to make sure that the new behemoth that would be born out of Oracle and Sun Microsystems wouldn’t pose undue threats to other smaller businesses – as it is, monopoly is not good for industry or for consumers.

Now, the European Commission is close to finalising its decision, mostly in favour, of the deal – the Competition Commission is almost convinced that Oracle would do all it takes to make it a fair deal and the focus is also increasingly on how Sun Microsystems is losing badly on account of the suspended animation that the takeover bid has found itself in.

With the European verdict in favour of the deal very much on the cards, there is fresh trouble brewing for the deal, with Michael Widenius, the creator of MySQL database that now resides with Sun Microsystems, planning to intensify his campaign against the takeover. And he plans to push Russian and Chinese regulators into action so that they take up the cudgel and play spoilsport – and the grounds would be the same ones that have already been studied, analysed and approved by the US and perhaps, by the European Regulators.

Government Policies and Economic Growth: Mergers and Acquisitions are tricky parts of businesses, with scope for problems and challenges. And much of the problems in international politics should be settled amongst the different nations. The world has seen so many changes, and the ones that have swept the international economies of late are the ones that have played an integrating role in world trade. With a global village, uniform policies and standards need to be developed that could facilitate business carry on with its work. And Business challenges have to be addressed by favourable government policies to promote entrepreneurship and economic growth.  And business deals should not be approved in one region, unless all checks have already been applied and the details, approved.

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