...P6 Describe how political, legal and social factors affect McDonalds Political Factors in UK Political factor is one of the main factors for McDonalds as it allows them to have the knowledge of how the economy is and also allows them to predict how to move forward with their business and expand it. The political stability in the UK is stable due to the fact they have a stable government because the inflation is at 2% which allows McDonalds to run their business successfully as the economy is thriving. Whereas India isn’t a well-developed country and the laws and legislation’s aren’t enforced properly. This could allow other companies to copy McDonald’s products and services without getting caught. As it is a LEDC there is less money in the economy so McDonalds may not be bought as frequently compared to the UK. Availability of transport and internet In the UK the availability of transport is excellent as the roads are good and there are very good transportation vehicles as well so the logistics for McDonald’s is excellent. This means they can get products from location to location easily and efficiently. The availability of the internet in the UK is also really good and reliable and it is quite the norm in society. This is good because McDonald’s can then use this to advertise the business. In India the availability of transport is not as good as the roads are not properly maintained and some locations would be hard to reach. This means the logistics would not be as good...
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...P6 – Influences effecting Tesco and Great Ormond Street Political Political Stability Political stability is how secure the countries government is. There are many different factors that come into this including financial state, predictability and reliability. If a country has not got a stable political system, it will be affected and this will show. Tesco will be able to determine how well they will do depending on how stable the political system is. They will see the country’s plans for the future and be able to forecast how well they will do. If the country makes changes, for example to minimum wage, this could affect Tesco. If the government put the minimum wage up this will affect how much money Tesco have to pay out for wages. Also if Tesco want to open a store in a country, they will look at the political stability of the country which will determine whether they open the store or not. Great Ormond Street is also affected by political stability. If the country has good stability, Great Ormond Street will be able to get funding for their charity and hospital. Also if the country is stable, people will have more money to donate to GOSH. If the country is unstable, it will affect the decisions that the charity makes. Government support Government support means the way the government helps out the community by giving their support in order to help others. Things such as funding come from the government to help businesses grow. Tesco isn’t really helped out by...
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...COMPETITION LAW ASSIGNMENT: Critically examine and analyze the provisions relating to competition law enforcement authorities under the completion act 2010. Look at the weaknesses strengths of the competition law enforcement authorities and make suggestions. HISTORY Before the introduction of the new Competition Act, the Kenyan investment market was unfavorable for competition, as new investors needed financial and political muscle to gain commercial mileage hence companies had to align themselves with political strong men or merge with them, against perceived competitors inorder to carve themselves a niche. This was especially the case for new businesses wishing to operate in sectors with large consumer bases such as telecommunications, information systems, financial services and energy. The objective of the Act is to modernize competition regulation inorder to support the local market economy and consequently deepen consumers’ benefits. The Competition Authority is mandated to promote and safeguard competition in the national economy and to protect consumers from unfair market conduct. The Act applies to all persons including the Government, State Corporation and devolved government in so far as they engage in trade. The mandate is comprehensive and clear as Section 9 defines the tasks as follows: To promote and enforce compliance with the Act; To receive and investigate complaints from legal or natural persons and consumer bodies; To promote public knowledge, awareness...
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...Limitations and constraints The Sale of Goods Act Under the Sale of Goods Act 1979 goods must be as described, of satisfactory quality and fit for purpose. Fit for purpose means both their everyday purpose, and also any specific purpose that you agreed with the seller (for example, if you specifically asked for a printer that would be compatible with your computer) Goods sold must also match any sample you were shown in-store, or any description in a brochure Consumer protection from unfair trading There are three main sections in the Consumer Protection from Unfair Trading Regulations. These are as follows: • The general ban on unfair commercial practices • Misleading and aggressive practices which are assessed in light of the effect they have, or are likely to have, on the average consumer • The Black List which contains the list of those practices which are unfair and thus banned Apple must advertise the product properly so that customers can understand the product and its features. Consumer Credit Act The Consumer Credit Act 1974 regulates consumer credit and covers the following areas: • content and form of credit agreements • method of calculating annual percentage rate (APR) • procedures relating to events of default, termination or early settlement • credit Advertising • section 75 which gives you extra protection on items costing over £100 and up to £30,000 paid by credit card Data protection act The Data Protection Act 1998 gives you the right...
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...Competition Law & Pharmaceutical Industry Adithya Krishna Chintapanti About CENTAD Undertakes policy research and advocacy on issues related to trade and development, with a primary focus on South Asia. Centad’s work on access to medicines currently focuses on issues pertaining to access in India and aims to Secure a legal and policy environment to ensure access to medicines. Ensure transparency and accountability in public spending on drugs. Examine the impact of industry practices on access. Focus of the Presentation Bring to light anti-competitive practices prevalent in the pharmaceutical industry and healthcare sector. Indicate the approach proposed to be taken for executing the study and analyzing the data collected in pursuance thereof. Broad Scheme of Presentation Indian Pharmaceutical Industry a Snapshot Access to Medicines Situation in India Objectives of the Study Anti-competitive Practices Competition Act 2002 Regulation of Combinations Anti-competitive Agreements Abuse of Dominance Proposed Chapterisation Proposed Methodology 1. 2. 3. Indian Pharmaceutical Industry a Snapshot Net Worth 8 Billion Dollars Growth Rate of 8-9% PA. 4th in the World in terms of Volume of Drug Output Exports to nearly 212 countries @ USD 4795.33 million (2005-06) Has an important role to play in promoting public health and Right to Health. Highly technology and knowledge intensive. Indian Pharmaceutical Industry a Snapshot Industry growth highly dependent on...
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...problems. It also means that products must last a reasonable time. But it doesn't give you any rights if a fault was obvious or pointed out to you at point of sale. Fit for purpose covers not only the obvious purpose of an item but any purpose you queried and were given assurances about by the trader. CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008 - There are three main sections in the Consumer Protection from Unfair Trading Regulations. These are as follows: * The general ban on unfair commercial practices * Misleading and aggressive practices which are assessed in light of the effect they have, or are likely to have, on the average consumer * The Black List which contains the list of those practices which are unfair and thus banned Companies are not allowed to use misleading or underhand tactics to get you to part with your cash. Misleading actions include advertising goods that don't exist, or offering just a few items at the advertised price with no hope of meeting large demand. CONSUMER CREDIT ACTS 1974 AND 2006 - An Act to establish for the protection of consumers a new system, administered by the Director General of Fair Trading, of licensing...
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...REPUBLIC ACT NO. 10667 * Philippine Competition Act * Established to look into anti-competitive agreements and abuses of dominant position as well as review mergers and acquisitions. * A national competition policy that seeks to promote free and fair competition in trade, industry and all commercial economic activities. * The Philippine Competition Commission. * United States’ Antitrust Laws PROHIBITED ACTS * Anti-Competitive Agreements Agreements between or among competitors where they limit their price of goods to be sold. Another thing is where they fix the price at an auction including bid manipulation and other forms of bidding * Abuse of Dominant Position Constricts the competition between existing entities with their use of power or dominance over the first-hand players in the industry such that they lessen or lower their prices in order to gain more (predatory acts) * Anti-Competitive Mergers and Acquisitions These are movements or acts referring to the tactics usually practiced by big players in the market to extensively prevent, restrict or lessen and manipulate competition. PENALTIES * Chapter IV of the Republic Act under the 1987 Philippine Constitution Administrative fines for the violation of Sections 14 and 15 under Chapter III and also Sections 17 and 20 under Chapter IV of the Act. * Section 29(b) Failure to Comply With an Order of the Commission: An entity which fails or refuses to comply with a ruling, order...
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...THE COMPETITION ACT, 2002 No. 12 OF 2003 as amended by The Competition (Amendment) Act, 2007 2007 THE COMPETITION ACT, 2002 1 No. 12 OF 2003 [13th January, 2003.] An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY Short title, extent and commencement 1. (1) This Act may be called the Competition Act, 2002. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Definitions 2. In this Act, unless the context otherwise requires,— (a) "acquisition" means, directly or indirectly, acquiring or agreeing to acquire— (i) (ii) 1 shares, voting rights or assets of any enterprise; or control over management or control over assets...
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...CONSUMERISM Historical Overview of Consumerist Movement The first consumer movements took place in the 1900s and were fuelled by such factors as rising prices and unethical drugs scandals. The second was in the 1930s, was caused by similar cases as in the 1960, and has been growing stronger since then to date. This was because of complex set developments. Consumers have become better educated, products have become increasingly complex and hazardous and there is general discontent in Nigeria. Evolution of Consumerism in Nigeria In a free economy, businesses can deliver abundant goods and services to those who can afford them, but could make consumers vulnerable due to unscrupulous practices of certain organizations. Nigeria as a third-world country has had consumerism more in the form of government legislation and enforcement than organized consumer associations. Thirty-Seven years after the first consumer protection agency was established, cases of consumer rights abuse are still preponderant. The aim of this exploratory and conceptual study is to assess the performance of agencies in charge of consumer rights protection based on their statutory functions. The study finds that, for the most part, the agencies are below par in performance with very poor level of awareness among Nigerian consumers who are reluctant to enforce their rights. This reluctance is largely due to poor level of education among Nigerian consumers, unnecessarily rigid judicial system that protects...
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...Law relating to unfair trade practices Definition: An unfair trade practice means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice. Unfair practices may be categorised as under: 1. FALSE REPRESENTATION The practice of making any oral or written statement or representation which: * Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or model; * Falsely suggests that the services are of a particular standard, quantity or grade; * Falsely suggests any re-built, second-hand renovated, reconditioned or old goods as new goods; * Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have; * Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have; * Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; * Gives any warranty or guarantee of the performance, efficacy or length of life of the goods, that is not based on an adequate or proper test; * Makes to the public a representation in the form that purports to be- * *# a warranty or guarantee of the goods or services, a promise to replace, maintain or repair the goods until it has achieved a specified result, if such...
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...P2: describe the limitations and constraints of marketing Sales of goods act 1979 The sales of goods act 1979 states that goods sold by a company or business must be as described, of a satisfactory quality and fit for purpose. This means that goods that have been advertised must be exactly the same as the advertisement, not damaged or broken on sale and also completes the task it was made to do. For example if you were to advertise a computer it has to work properly and have everything as described in the advertisement. The merchandise will have a return policy to return any products to collect a refund or trade it for another and this would usually be around 30 days. Should company’s hire purchase equipment but find it is faulty this is not included in the sales of goods act 1979 but instead any hire purchase equipment falls under the supply of goods implied terms act 1973. Should the product you bought not fall under any of these factors then the company who sold it to you is in breach of the sales of goods act and you could claim under this act. For the NMM this could cause problems should the merchandise be broken or damaged because they bought it from the manufacturer which therefore is then held liable. If the NMM had a breach in the sales of goods act 1979 then this could have a big effect on their future business as people would be put off buying merchandise from them which would therefore lead to a decrease in profit from the products and potentially a big cost for...
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...------------------------------------------------- Price Signalling and Competition – Research Essay An evaluation of the law should be conducted in light of a specific objective. This way, one can make a valid determination regarding the effectiveness of the laws in question and their operation with respect to their intended purpose. The objective of the Competition and Consumer Act 2010 (Cth) (CCA) is to enhance the welfare of Australians by promoting competition and fair-trading, and to provide protection to Australian consumers. The relevant laws in place should therefore reflect the aims of this objective. It has been proposed that government action to prohibit anti-competitive price signalling and information exchange between competitors advances the objective of the CCA by strengthening its safe guards against anti-competitive conduct, recognising that competitive markets enhance the welfare of Australians. Several commentators from the business and legal community however challenged this suggestion. They argue that amendments to this end would be futile as such conduct is already regulated by the existing provisions in the CCA. Others have even argued that such regulation has the potential to impede to legitimate and pro-competitive commercial behaviour. Nonetheless, the Australian Consumer and Competition Commission (ACCC) has maintained its position in support of laws that specifically target anti-competitive communication between competitors. Recent public...
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...Rule of Reason Approach—Critical analysis on the AAEC in respect of P & G Gillette Merger. --- By Bhanu Shree Jain In inquiring into a Merger and Acquisition the Competition Commission has to see whether a Merger and Acquisition has caused or likely to cause an “appreciable adverse effect on competition” (AAEC) and there is a ‘rule of reason’ approach to the inquiry. The paper explores Section 5, 6, 20, 29, 30 & 31 of the Competition Act, 2002 which govern the same and the act provides a large number of factors which the Commission must take in to account in the inquiry. Most importantly, these include the market share of the enterprises, barriers to entry, level of concentration in the market, likelihood of increase in prices of profits margins, removal of an important competitor, and so on. If the Commission finds, which going by historical experiences could be in a small proposition of the cases, that the merger is likely to have AAEC, the commission may refuse approval or may approve it with certain modifications. In case of P&G Gillette merger, the authorities stipulated that certain part of the business must be divested. The process of inquiry set out in the act provides full opportune to the merging enterprises to defend the merger and also to consider any modifications proposed by the Commission. It also provides an open opportunity to opposing parties to present their position to the Commission. Section 5 sets up the threshold limit in India as well...
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...would however be procompetitive because it would lead to: • • • 1.4 a reduction in the barriers to entry and growth facing smaller audit firms the maintenance of competition between larger audit firms, including for non-audit work, and less risk of collapse of one of the Big Four. On the basis of the evidence available to us, however, none of these arguments appears compelling. First, the current liability position is a minor barrier to entry in comparison to reputation, third party perceptions, economies of scale, global networks, regulation, and various other impediments to the entry and growth of smaller audit firms. The liability position is symmetric as between all audit firms, so the introduction of a cap would not 1.5 Office of Fair Trading 1 appreciably alter the relative...
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...Market failure is caused by the market failing to provide the type or quantity of goods and services wanted by consumers. This means that resources have not been allocated efficiently. This could be because of four factors: imperfect competition, external costs and external benefits are ignored (externalities), public goods are not provided, or merit goods are not provided in sufficient quantity. Imperfect competition From a business’s point of view competition is bad as it drives down the price of the product they are trying to sell but for the economy as a whole it is a positive thing as many customers are having their wants and needs met. Imperfect competition can cause market failure through monopoly, a monopoly is a singular supplier of a product which can lead to exorbitant pricing or inferior products as consumers have no other options. Another cause of imperfect competition is an oligopoly which is very few dominant suppliers providing a product giving one supplier the opportunity to drive up the price allowing the other suppliers the freedom to do the same. An oligopoly also increases frequency of cartels. A cartel is a mutual agreement between suppliers and possibly producers to keep prices at a set price leaving consumers with no option to shop around for a better price. Externalities An externality is something that is a by-product or consumption which affects a third party externally. Externalities can be positive or negative. Positive externalities have...
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