Managerial Effectiveness of Fruit Sellers

Topics: Supply and demand, Management, Cart Pages: 7 (1669 words) Published: April 6, 2013
Prof. Partha Sen Gupta
KIIT University
Sayantan Patra
Sonali Swain
Sonali Khuntia
Achinto Mahato
Amit Kumar
Satabdi Das

Managerial Effectiveness is fast becoming a competitive advantage for organizations, especially in the context of high demand for and, therefore, continuous migration of competent managers from one organization to another. Organizations, therefore, have started investing in retaining competent managers and putting in place systems for developing new cadre of effective managers. It is in wake of these contextual factors that this programme on Managerial Effectiveness is being conducted. Managerial Effectiveness is often defined in terms of output - what a manager achieves. This result oriented definition leads us to look for the factors that contribute towards the “results”. Studies find three factors to be responsible for the results that an organization achieves through its managers. These are: (a) the efforts and ability of the managers, (b) the environment in which the managers and the organization operates, and (c) the efforts and ability of the subordinates. Thus, the managers’ ability is the key element in achieving the desired results. This programme on Managerial Effectiveness focuses by and large on the managerial ability of Managing Self, Managing Subordinates & Relationships (which can enhance subordinates’ ability), Managing Change and Decision Making (which requires the managers to understand the environment in which she/he and her/his organization operates). FRUIT MARKET- PERFECT COMPETITION:-

Perfect competition is a market situation in which there are large number of buyers and sellers dealing in homogeneous products. The buyers and sellers possess perfect knowledge about the prevailing market price rates, and the demand for each seller is perfectly elastic. There is one prevailing price in the market, as a fruit seller selling oranges for say Rs. 30, the other fruit sellers have to be on the track so as not to lose customers. The essential characteristics of fruits market which makes it qualify as a perfect competitive market are:- (1). There are large number of buyers and sellers as no single seller can affect the price. If a firm enters into the market or exit the market, there will be no effect on the supply. Also, if a buyer enters the market or exit from the market, demand will not be affected, as a result of which a individual buyer or seller cannot affect the price. (2). The product (fruits) is homogeneous in nature. There is no rational preference of the buyer to which seller they must go. (3). No discrimination as buyers and sellers are willing to buy and sell freely at the market price, except in few cases of favors to selected individuals by offering discounts. (4). There is a perfect knowledge existing between buyers and sellers as they have close contact with each other. It is known what exactly the prevailing price rates of the fruits are in different parts of the market. (5). In the long run, there is a provision of free entry and exit of firms. There are no legal or social restrictions on the mandis. FACTORS AFFECTING DEMAND-

(1). Population- Population growth is currently 2% per year, and there is a direct relationship between per capita fruit consumption and income levels of the customers. (2). Consumption Habits and Preferences- Consumers are aware of the positive health aspects with diet and healthier eating has resulted in increased demand for fruits. (3). Income Levels- The survey showed that customers of higher income groups have larger proportion of their spending for apples which is very costly, whereas middle and low income group customers purchase more of bananas which is Rs. 2.50 per piece and to some extent oranges which is Rs.40/kg. (4)...
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