1.1 Explain the characteristics of different business markets
The characteristics of different business markets are dependent upon what product or services an organization produces or provides and the type of buyer they want to attract. Business to business, businesses sell to each other e.g. accountants specializing in business accounts. Consumer markets; products and services are sold by businesses to consumers e.g. supermarkets etc. A service market is where a business sells its services directly to individual consumers for example hairdressers. Industrial markets are ones where industrial or production products are sold to other industries. They tend to have few buyers but make high value sales. Professional service markets are ones where
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Those who constantly monitor and examine the market looking ahead to change their goals based on what the markets wants are more successful. An organisations goals and plans to achieve these goals may be shaped by the market it operates in. Organisations need to be responsive and may need to change the goals in order to achieve them. They will need to monitor the market reviewing the wants and needs of the consumer along with aspects that may change customer requirement such as changes in legislation, economic circumstances and technological advancements. The more responsive a business can be the better its chances of capitalizing on market demand. The Pestle Analysis and Pestle framework – standing for Political, Economic, Sociological. Technological, Legal & Environmental factors, is useful for understanding the business environment as a …show more content…
This includes company law (the companies act 2000), limited companies, partnerships, sole traders. These all stipulate how the company must be registered and trades. Some require registration and legal representation, whereas sole traders can be less rigid legally and with fewer fees. Any business has legal obligations towards its customers and their employees. All customers are covered by the trading standards act. When you buy goods from a trader or when goods are supplied as part of a service, you enter into a contract, which is controlled by many laws including the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982. Employees themselves have rights and again are governed by a legal standard usually referred to as statutory rights. These are legal rights based on laws passed by Parliament. With these rights in place, no employer is able to change these rights even with a contract. Equality Act 2010, contracts, copyrights and design, data protection, distance selling, dissolution of a business, passing off goods, patents, performing rights society and phonographic performance ltd, sale of goods and services through a website, sale of goods law, sale of goods law(consumer protection) & trademarks. A significant number of legal obligations arise in the area of Employment law also. Small examples of these obligations are as follows,
A market leader must embrace the five business priorities and make them part of his daily routine as well as his or her long term career plan. The first characteristic involves the prioritizing of people. People inside the organization as well as the customer on the outside are valuable. Communication with people is a key factor. A market leader must have open communication with those on the inside and outside of the organization. Employees must feel free to express their thoughts and concerns. I if the employee feels that they have be heard, then they will have a more positive attitude toward the organization and thus be more productive. Likewise the communication path must be open for the customer. Customer feedback is essential in determining the public outlook toward the organization. If there is no way of obtaining customer feedback, opportunity for improvement is lost. A second characteristic of a market leader is the ability to define strategic objectives. Strategic objectives are made up of plans and goals. One must be able to develop plans and goals for the near as well as the distant future. Plans are the means to achieve goals. The EMS Officer must develop a set of goals and a timeline in which to accomplish them. To obtain the goals the EMS Officer must develop a plan and through communication and collaboration obtain employee buy in. These goals must be
Moran, J. J. (2008). Employment law: New challenges in the business environment. New Jersey: Pearson Prentice Hall.
In dealing with a person’s livelihood, and often, sense of self, it is of no surprise that ethical issues regarding employment practices are of great concern. The issues of employment at will and due process contracts in the workplace are among the most widely contentious in the realm of employment. Employment at will is the doctrine that employment may be ended, by either party, for good, bad or no cause at all.1 Due process, on the other hand, is the employment practice in which a person may appeal a decision as a means of receiving an explanation and the opportunity to argue against it.2 Employment at will is the standard in the majority of private corporations today and is argued for relentlessly by freedom of contract enthusiasts, however, it is becoming ever more apparent that employment at will contracts reflect the old corporate maxim where the single bottom line, profit, is accented and the well being of other stakeholders, in this case the employee, are of little or no influence. Due process should be accepted as the prevalent employment system as it shelters employees from the hostile actions of the more powerful employer, provides a stable, bilateral contract between both parties and portrays the growing ethical concerns of society.
United States of America. National Employment Law Project. National Employment Law Project. N.p., Jan. 2011. Web. 18 May 2014.
There are many industries. Economist group them into four market models: 1) pure competition which involves a very large number of firms producing a standardized producer. New firms may enter very easily. 2) Pure monopoly is a market structure in which one firm is the sole seller a product or service like a local electric company. Entry of additional firms is blocked so that one firm is the industry. 3)Monopolistic competition is characterized by a relatively large number of sellers producing differentiated product. 4)Oligopoly involves only a few sellers; this “fewness” means that each firm is affected by the decisions of rival and must take these decisions into account in determining its own price and output. Pure competition assumes that firms and resources are mobile among different kinds of industries.
There are four major market structures; perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition is the market structure in which there are many sellers and buyers, firms produce a homogeneous product, and there is free entry into and exit out of the industry (Amacher & Pate, 2013). A perfect competition is characterized by the fact that homogeneous products are being created. With this being the case consumers have no tendency to buy one product over the other, because they are all the same. Perfect competitions are also set up so that there is companies are free to enter and leave a market as they choose. They are allowed to do with without any type of restriction, from either the government or the other companies. This structure is purely theoretical, and represents and extreme end of the market structure. The opposite end of the market structure from perfect competition is monopoly.
The deep analysis of the macro-environment is key to the organisations in order to understand which factors are impacting their operations. The main purpose of PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental) is to identify those factors that have an impact on the organisation but are outside its control area. Together with other frameworks (such as Porter’s ‘5 forces’), PESTLE framework is required to develop a comprehensive analytical strategic process.
moral duty and obligations. Such as employee theft and fraud, dishonesty and loafing on the job,
Your livelihood is at stake here and although, for the most part, changes to legislation governing employee rights generally tend to favour employees that isn’t always the case, so be aware that your legal rights and situation as an employee could be subject to change. Your basic rights at work In the UK, your basic rights at work are affected by a) statutory rights which are legal rights based on laws that have been passed by Parliament, and b) your employment contract. However, you must be aware that the employment contract you entered into with your employer cannot take away from you the rights based on laws that have been passed by parliament.
Labour and Employment Law. Cincinnati, OH: South-Western Publishing Company.
AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.
In company law, registered companies are complicated with the concepts of separate legal personality as the courts do not have a definite rule on when to lift the corporate veil. The concept of ‘Separate legal personality’ is created under the Companies Act 1862 and the significance of this concept is being recognized in the Companies Act 2006 nowadays. In order to avoid personal liability, it assures that individuals are sanctioned to incorporate companies to separate their business and personal affairs. The ‘separate legal personality’ principle was further reaffirmed in the courts through the decision of Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its
Legal considerations play an important role in how employers and employees interact in the workplace. Common-law doctrines regarding this relationship have been established from many legal decisions made over the course of centuries (Reed & Bogardus, 2012). Common-law doctrines lay the foundation for best practices in employment which provide for both employer and employee safeguards.
The second market structure is a monopolistic competition. The conditions of this market are similar as for perfect competition except the product is not homogenous it is differentiated; thus having control over its price. (Nellis and Parker, 1997). There are many firms and freedom of entry into the industry, firms are price makers and are faced with a downward sloping demand curve as well as profit maximizers. Examples include; restaurant businesses, hotels and pubs, specialist retailing (builders) and consumer services (Sloman, 2013).