The sole proprietor has the advantage of maintaining complete control over his or her business. Disadvantages: One of the greatest disadvantages to a sole proprietorship is the lack of cash flow or access to capital like loans or investors. They do not have the advantage of getting access to capital through bonds or shares and credit is based on their personal credit history. The lack of capital keeps purchase power restricted in comparison to corporations. Liabilities can be very heavy for sole proprietors depending on the nature of the business.
Competition in the market place is one facet that drives the capitalistic system. Without competition a business would not have any checks and balances to control pricing to the consumer. Since businesses compete for consumers businesses must market its products and services so it will entice consumers to buy its products or services. If a business prices what it wants to sell too high consumers will likely go to a competitor instead. To be competitive businesses will have to research local competition and set prices as-well-as stock product that will compete with any other businesses in the area.
Besides state and federal regulations new companies are developed with new policies making it much harder for just anyone to open up a facility. Not only do they need to be approve but adding employees whether physicians or assistants must be an attractions to keep any other competition on the low. Due to so many restrictions helps keep the opposition on the low side. In the health care filed the bargaining power of buyers is also very narrow and restricted. The economy has no control over humanity, the reason for this will be since diseases, illness and injuries occur during any giving time.
However, markets wear down sovereignty. Entities, like the OPEC, Greenpeace and international banks, which rose because of markets find that the organizing principle is the need for trade and not nationhood. Secondly, the resource imperative tells us that “every nation, it turns out, needs something another nation has; some nations almost have nothing they need.” Our nations today are largely dependent on the resources available and
There may be other similar businesses, but in the case of a monopoly, there is only one business or individual that can provide a specific product or service. An oligopoly is where the product or the service may be available from more than one vendor, but only a few big merchants are in control of the market. This makes it hard for new competition to try to enter the field. Industrial regulations suppress monopolies and oligopolies from price fixing. The regulations make competition a necessity which in turn keeps the prices to consumers more affordable and competitive.
The Potato Chip Industry as a Monopolistic Competitive Industry Prof. Harvey Criswell ECO 204 October 17, 2011 The Potato Chip Industry as a Monopolistic Competitive Industry The potato chip industry in the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. This paper will cover the benefits of this new monopoly, the changes which will occur in price and output of the product in this particular type of market structure; and market structure that will most benefit the Wonks potato chip monopoly. [Economists divide market conditions into four major categories: (1) monopoly, (2) pure competition, (3) monopolistic competition, and (4) oligopoly. In a monopoly, a single company supplies a product or service for which buyers cannot find a close substitute.
The veterans were taking the better clients giving themselves a better commission. This also left the territories under worked and not producing as many sales as possible. The final problem that Dave Thomas encountered was enforcing the strategy and policy with the older sales people. While the younger sales people are driven and respectful to new changes, the veteran sales reps are used to the old way and the enforcement of new changes is difficult. As far as strategy, there is consistently a discrepancy between selling high volume or selling only high margin items.
A monopolistic competition is where several firms compete in the same market offering similar products or services but the products differ which makes it not a perfect competition. An oligopoly consists of fewer firms in a given market and each firm takes into consideration other firms and their actions in order to anticipate their responses. The industry that I am choosing to write my “Differentiating Between Market Structures” paper on will be on the automotive industry. The reason why chose this industry is because of how much the influence of the supply and demand really fluctuates the price and how other firms that are competing in the same industry are affected by the decision and actions of each other. With the automotive industry, the costs of vehicles vary depending on a lot of different factors.
Age is not the only diversity within the workplace, but now cultural differences such as race, religion and personal beliefs also play a bigger part. With all of these differences, employers can no longer establish one set of standards and expect all to fall within them. Although it can be a challenge, the payoff for making these accommodations can end up being far more than the initial costs. What exactly is diversity? Dr. Pace (2005) defines a diverse group as “one that includes people from different ethnic, racial, economic and religious
Any objectives agreed upon by a management coalition would inevitably be highly ambiguous goals, enfeebling the ability of a top manager or entrepreneur to truly control the direction of the firm. Cyert and March argued that while ‘individuals have goals; collectivities of people do not’ (1992, p.30), and thus the firm could not have well-defined objectives. Premised on this weak (or the absence of) leadership, The Behavioral Theory posits that the firm’s strategies and learning processes are short-term in focus with adaptations induced by crises. Management is unable to reconfigure internal resources because of the immutability of standard operating procedures and the ambiguity of coalition goals. In his discussion of firm strategy, Oliver Williamson notes that in Cyert and March ‘the firm resembles a fire department more than a strategic actor’ (1999, p. 14).