...the marketplace is influenced by the growth of monopolies, mergers, and cartel-type activities which often use their market power to the disadvantage of consumers. a) Examine the arguments in favour of a free-market system of resource allocation b) Explain how market failure can occur and suggest how the government in a country of your choice has sought to correct those market failures. 1.0 FREE MARKET SYSTEM ‘’If you leave the Market going alone, it will balance as there was an invisible hand’’ (Smith,1776). Free markets have many virtues. Arguably, the most recognized is the expansion of individual choice, and thus freedom, through mutually beneficial exchange. (Bauer, 2002, p.171) 1.1 Basis of the free Market: According to Adam Smith ,the free market system was based in: Free enterprise or ‘’Laisser faire’’, individualist, risk, capitalism. * Free enterprise (Laisser faire): The government does not run anything. * Individualist: Only individual matter, not community, not society. * Risk: Everyone can make a lot or can loose a lot. Everyone take his owns risks. * Capitalism: where the main thing is to make profit. 2.0 THERE ARE FOUR MAIN ARGUMENTS IN FAVOR OF A FREE MARKET SYSTEM: 1) DEMAND AND SUPPLY MAKE PRICE 2.1 A free market is a competitive market where prices are determined by Supply and Demand: Where demand and supply intersect, we have what Smith called the natural...
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...Market Structures in Computer Operating Systems When purchasing a new computer the discussion on which operating system to choose does not usually come up, as there had been a monopoly in this industry since 1985 (Bellis, 2013). Microsoft with its Windows platform is a giant in the computer operating systems industry. The Microsoft Windows market structure began in an oligopolistic market, became a monopoly, and developed back into oligopolistic. History – Early Years In the early years of Microsoft Windows, the competition for computer operating systems was limited to MS-DOS, VisiOn, and GEM (Graphics Environment Manager). All of these systems struggled in a small demand market because no programs were being written for them. There was no need for consumers to purchase the products. In 1990, Windows 3.0 was released and with its release came extensive third-party support by programmers. This created a huge demand for the system and the software programmed for it. This demand caused the competition to disappear from the market and propel Windows into a monopoly market (Bellis, 2013). Market Types An oligopolistic market is explained as a market where only a few firms compete, as opposed to a monopoly where one firm makes up the entire market (Colander, 2010). Microsoft Windows from 1990 to 2007 was a monopoly to the industry because consumers had no other choice or substitute for a computer operating system. This means the marginal revenue (MR) for Microsoft during...
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...Cisco Systems Managing The Go To Market Evolution Cisco Systems Managing The Go To Market Evolution Analysis Company background (Cisco Systems): Cisco Systems is a world leading company in the switches and router market. Established in 1984 by a Stanford University couple, IT administrators Len Bosack and Sandy Lerner. Ina short period after founding, it became one of the most successful companies in high technology industry. In Cisco, manufacturing of its switches and router was outsourced, the company focused on core competencies: product design and development. Indirect sales and distribution through resellers became the major sales channel in the end of 1990’s; its “Value-Added Reseller” (VAR) was the most successful indirect sales channel strategy at that time. In later 1990s, Cisco had ever been the world’s most valuable company, its market capitalization exceeded $500 billion in 2000, and sales reached $18 billion. With the telecom and dot-com crash in 2001, Cisco’s business was hugely affected; $1 billion loss was reported in 2001. The shrunken market made Cisco’s management completely review and revamp its go-to market strategy. Market and Products: Cisco’s major products are switches and routers. A switch is used to connect workstations within a local-area network (LAN). The switch directs data only to the destination for which it is intended, and increases the efficiency of networks by reducing traffic and the number of “collisions” of data headed in opposite...
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...Sweet Poison- Epidemic of the 21st Century! TEAM RISKY BUSINESS DEEPAK JOSHY JOBIN RAJ NEERAJA S RAVI TEJA POLINENI VIGNESH SANKAR J CONTENTS 1.0 INTRODUCTION ................................................................................................................................1 2.0 OBJECTIVES .......................................................................................................................................2 2.1 Decision Maker’s Problem: ....................................................................................................2 2.2 Market Research Problem: ....................................................................................................2 3.0 DESK RESEARCH .............................................................................................................................3 3.1 Purpose.....................................................................................................................................3 3.2 Procedure ................................................................................................................................5 3.3 Summary .................................................................................................................................5 4.0 RESEARCH DESIGN: ......................................................................................................................6 4.1 Exploratory Research ...............................................
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...E-commerce. The concept of E-commerce is to perform business via networks and internet. E-commerce includes mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. World Wide Web and Electronic Mail (E-Mail) is used for the transactions in modern electronic commerce. Importance of E-commerce From the business point of view E-commerce can be cost effective. But it makes trading much more easy. It provides better connectivity for potential customers as the websites of the company can be accessed from anywhere in the world. This way more potential customers can get in touch with company's business. With the help of E-commerce customers can now browse through the whole catalog of a company without any hassle, they can also compare products and on top of that they can do it from their home or from work. E-commerce has opened up various windows and opportunities for the companies to reach to its potential customers easily. Eventually it will become a major marketing plan for all the companies in order to survive and compete in the ever changing market. E-commerce in Bangladesh Bangladesh is developing country and the telecommunication sector of this country is also developing. E-commerce can play a big role in the development of this country. With a view to make Bangladesh digital by 2021 government has introduced several...
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...set themselves above the rest because they were able to engage themselves in a rapidly growing market, with fast, easy, and economical services that all smartphone users can engage themselves in. IT is also the enabler of this company. Customers use this app to request rides and track their reserved vehicle’s location. Without the use of this technology there would be no means of communication between the riders and drivers. The IT that Uber uses is not seen to be “cutting edge” in any means. It is conservative in the means of the technology used; the only thing that makes Uber’s IT “cutting edge” is the innovative way that they have changed and taken control of many markets across world. The use of the business is relatively simple; the rider goes on to the application enters their location and debit/credit card number and is paired with a driver that is near by. There are many applications that are in thousands of different markets that use this same means of payment and use of IT. What makes the IT of Uber so fantastic is that there were not applications like this when the company first really started to expand and grab a hold of its customers. The mobile market is the fastest growing in the world, and Uber took advantage of this market years ago, never looking back. Uber’s use of IT compliments the company’s strategic direction by providing differentiation in its market. Uber was the front...
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...different markets? ColgatePalmolive met this challenge in Asia with an ambitious overhaul of its regional supply chain and information systems. 70 Outlook 2000, Number 1 W hen it comes to toothpaste in China, Colgate is the market leader, according to a recent AC Nielsen Media International survey on China’s emerging consumer society. But in the shampoo category, a Colgate-Palmolive rival tops the list. Driving sales through brand-building and smart marketing is as necessary for fast-moving consumer products companies in China and the rest of Asia as it is in the mature markets of North America and Europe. But in Asia, with its fickle tastes, falling prices and unpredictable competitors, the pressure to keep ahead of the pack—and make a proper return—is relentless. The trick is to control tightly what can be controlled. The one area a consumer products company can be firmly in charge of is its own internal business processes. Eliminating waste and wringing out costs can have a dramatic effect, especially with the likes of shampoo, toothpaste and soap, where volumes are large but margins are tight. In the past two years ColgatePalmolive has rolled out an ambitious program to do just that in the Asia Pacific region. The company’s entire supply chain was reengineered and new back-office systems were put in place with stunning speed—all the more remarkable considering that the undertaking involved 57 sites across 11 different markets, including...
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...COMMUNICATING WITH CUSTOMERS: BUSINESS MARKETS A Written Report Presented to Prof. Maria Theresa Ranquilman Pamantasan ng Lungsod ng Maynila Intramuros, Manila In Partial Fulfillment of the Requirements for the Degree Master in Business Administration By Analyn P. Deogracias October 2014 Connecting with Customers: Business Markets Organizational Buying It is a decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. Business Market versus Consumer Market Business Markets comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. The major industries making up the business market are agriculture, forestry, and fisheries; mining, manufacturing; construction; transportation; communication; public utilities; banking, finance, and insurance; distribution; and services. Consumer Markets is dominated by products and services designed for the general consumer. Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future popularity of products and services. Differences of Business Market from Consumer Marker Market structure and demand * Business market contain Fewer but larger buyers * Business buyer demand is derived from final consumer...
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...governments involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing countries like India and China moving towards a full market oriented economy (economy watch 2010:1). The social democratic government of Australia adopted the principals of market economy after the...
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............................................................................................................................................... 3 OCME: its strengths and weaknesses ................................................................................................... 4 The analysis ................................................................................................................................................. 5 The Five Forces Analysis ....................................................................................................................... 5 Capability Analysis ............................................................................................................................... 6 The market analysis ............................................................................................................................. 7 The Strategy ................................................................................................................................................ 8 How to allocate sales men.................................................................................................................... 8 Business Flexibility ..............................................................................................................................10 The working teams creation ................................................................................................................10 Internal...
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...McKinsey on Payments. Date: June, 2010. Abstract: Article explains about the effective management of cash in business activities in this financial crisis. The various decisions to be considered by the biggest banks for better investing in cash management helps the banks to accelerate the revenues. The cluster effect strategic decisions are considered for established markets to offer a comprehensive range of basic cash management services to small and medium enterprises and mid – market and public – sector customers. A tired approach for cash management providers help the companies accelerate the collection of receivables and to control the payments to trade creditors and to efficiently manage cash services are briefly explained. Summary: Banks are setting ambitious targets for cash management growth by launching new cash management services in the markets. It requires well planned strategic thinking to know the market landscape. The strategies implemented by biggest banks are via mergers and acquisitions which helps the banks to widen the gaps between first and second – tier players. The competition in the market is much higher which lead to implement effective strategies over number of regional and domestic banks. Investing in cash management: * Cash management providers helped the companies to accelerate the collections and control the payments towards creditors. * Regional banks spend tens of millions of dollars annually to maintain competitive parity, while global...
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...Background: One year ago 3rd biggest telecommunication company sprint laid off 6000 employees and outsourced most of its network monitoring and management activities to off shore to reduce expenditure as a step towards globalization of the market economy .Also, hired Ericsson Services to provide network support in the local markets . Ericsson Services established centers in different parts of India to support these network management services for Sprint by hiring engineers on extremely low wages in those third world countries. I have a project idea to consolidate network performance, outages and dashboard reports on one system as all in one solution by automating the process which traditionally handled by network engineers in different markets . By utilizing this idea wireless companies can save millions of dollars and ensure security of the users by using internal systems for the network footprints. Moreover, it can save revenue, improve employees’ efficiency and certainly save jobs which have been outsourced in last one decade. These reports can be run on central database in four different levels. 1: break fix activities 2: performance optimization activities. 3: executive level daily dashboard report 4: customer related logs, billing , call details etc Break fix activites for technicians: 1: Running alarm log commands in every geographical area after every 5 minutes to collect outage reports and push the logs into a database with outage severity level and...
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...the buyer and seller market, providing a global new online trading platform, anyone can carry a variety of products traded through this platform. Whether traditional industries and emerging networks must convert a way of thinking, that is, the ability to provide customer value. Competitive forces: The company now sells a staggeringly diverse array of goods and is one of the world’s most easily recognizable and well-known Web sites. eBay is a favorable proposition for smaller sellers to find markets for rare goods, or goods that are otherwise difficult to value. The company reduced posting fees for adding an item online and increased the collection fee for sold items.In August 2008, eBay lowered its listing fees for all sellers offering fixed-priced items under its “Buy It Now” format. EBay adjusted its search ordering system so that highly rated merchants appear first and receive more exposure. Roll out a rating system that made acquiring a high rating a much more time-consuming undertaking, favoring larger sellers with the time and energy to build a favorable rating. eBay’s growth strategy focused on expansion in geography and scope and on continuing innovation to enhance the variety and appeal of products in its sites. 2、Business model:brokerage model:Cyber Age through virtual network platform to bring together buyers and sellers of supply and demand information, coordination of their supply and demand and the payment of transaction costs market intermediaries ...
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...| 1. Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? The plants should be located in every regional market they serve, preferably in non-seismic zone. In case a region has more than 2 plants, they should be built in geographically and climatically opposite places. Flexibility of these plants should be guided by Toyota’s global complementation strategy that allows plants to serve markets that are prospering when local market weakens. Capacity of each plant should be guided by the demand in the regional market they serve with the flexibility to serve additional demand from other export markets 2. Should plants be able to produce for all markets or only specific contingency markets? All plants should be able to produce the common parts required across all markets. This would ensure a plant’s ability to satisfy local demand as well as demand from other markets. 3. How should markets be allocated to plants and how frequently should this allocation be revised? Plants should cater the markets they are built in. This would basically reduce the logistics cost and also help company respond better to sudden changes in demand. Apart from the regional markets, each plant should have the ability to manufacture common plants. Additionally, each plant should complement atleast one more plant in terms of production. This allocation should be revised every 6 months...
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