CHAPTER 3 The Competitive Environment Learning Objectives Upon completing this chapter‚ you should be able to: Identify the structural characteristics of the environment faced by the firm and how these drivers influence both competition and value creation Choose the appropriate level of specificity in environmental analysis‚ depending on the locus of the decision-making group Predict how changes occurring in the environment might influence future competition and value creation Incorporate understanding
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A. FIRM AND ITS OBJECTIVE: Conventional theory of firm assumes profit maximization is the sole objective of business firms. But recent researches on this issue reveal that the objectives the firms pursue are more than one. Some important objectives‚ other than profit maximization are: (a) Maximization of the sales revenue (b) Maximization of firm’s growth rate (c) Maximization of Managers utility function (d) Making satisfactory rate of Profit (e) Long run Survival of the firm (f) Entry-prevention
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“Apply the concepts of marginal utility theory‚ product differentiation‚ and revenue/profit maximization to some event in your personal‚ daily lives.” [1] Marginal Utility Concept Application From the three concepts at hand this is by far the easiest to exemplify. According to Sloman and Sutcliffe the concept of utility is directly related to that of satisfaction [2]. The satisfaction that one individual takes from consuming something is called utility. Now when we consider the utility concept
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Total‚ average‚ and marginal product Total Product Curve The total product (or total physical product) of a variable factor of production identifies what outputs are possible using various levels of the variable input. This can be displayed in either a chart that lists the output level corresponding to various levels of input‚ or a graph that summarizes the data into a “total product curve”. The diagram shows a typical total product curve. In this example‚ output increases as more inputs
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Unequal Pay For Equal Work Mark Schmitt ORG303 –Applied Organizational Psychology Colorado State University – Global Campus Winsten-Bartlett‚ Cheryl January 5‚ 2014 UNEQUAL PAY FOR EQUAL WORK For years many people have cried for equal pay for equal work. This has been a legal and ethical issue in our country for many decades. There are laws that govern this issue such as the Equal Pay Act. This law states that men and women working in the same workplace will be paid the same. This
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no single seller can affect the price by changing its level of output e. no seller controls more than 20 percent of the total market supply 3. Which of the following is not a basic characteristic of a perfectly competitive market? a. a large number of buyers and sellers b. significant nonprice competition among firms c. a standardized product produced by firms d. no barriers to entry e. no barriers to exit 4. Firms in a perfectly competitive market cannot influence a
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dad‚ who is cooed at for his sensitivity but who is as isolated and financially vulnerable as the stay-at-home-mom.” Instead‚ they would create their own model‚ one in which they were parenting partners. Equals and peers. They would work equal hours‚ spend equal time with their children‚ take equal responsibility for their home. Neither would be the keeper of the mental to-do lists; neither of their careers would take precedence. Both would be equally likely to plan a birthday party or know that the
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Equal opportunity is a stipulation that all people should be treated similarly‚ unhampered by artificial barriers or prejudices or preferences‚ except when particular “distinctions can be explicitly justified. The aim according to this often "complex and contested concept" is that important jobs should go to those “most qualified” – persons most likely to perform ably in a given task – and not go to persons for arbitrary or irrelevant reasons‚ such as circumstances of birth‚ upbringing‚ friendship
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Micro-Economics Report of Microeconomics Submitted by: Sultan Lashari 10 2629 Submitted To: SIR MICHAEL SIMON Program: BACHELORS OF BUSINESS ADMINISTRATION FALL 2010 ------------------------------------------------- National University of Computer & Emerging Science Management
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Project Topic: Profit Maximization of a firm. Profit maximization has always been considered the primary goal of firms.The firm’s owner is the manager of the firm‚ and thus‚ the firm’s owner-manager is assumed to maximize the firm’s short-term profits (current profits and profits in the near future).Today‚ even when the profit maximizing assumption is maintained‚ the notion of profits has been broadened to take into account uncertainty faced by the firm (in realizing profits) and the time value
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