Presentation for Human Resources

Now I describe about the market structure such as monopoly and oligopoly, market forces shape organization responses, the business and cultural environments, the significant of international trade to UK business organizations, the impact of global factors on UK business organizations, and the impact of policies of the European Union on UK business organization.

Monopoly

• The word monopoly has been derived from greed words Mono+pollein which means single control.

• Monopoly is a market situation in which there is a sole(single) producer of a commodity which has no close substitutes.

• In monopoly there is only seller of the product he has full control over its supply.

Monopoly

• One firm• Unique product• Blocked entry• Market power - Price makerExamples- Local untilities

Monopoly

A monopoly is simply a market with only one seller and no close substitutes for that seller's product. Technically, the term "monopoly" is supposed to refer to the market itself, but it's become common for the single seller in the market to also be referred to as a monopoly (rather than as having a monopoly on a market). It's also fairly common for the single seller in a market to be referred to as a monopolist.

Oligopoly

• A few large firms• Standardized or

differentiated products

• Market power - Interdependent• Examples - Steel, oil - Automobiles

Oligopoly Oligopoly is a market structure characterized by a small number of relatively large firms that dominates an industry. The market can be dominated by as few as two firms or as many as twenty, and still be considered oligopoly. With fewer than two firms, the industry is monopoly. As the number of firms increase (but with no exact number) oligopoly becomes monopolistic competition.

Monopolistic competition• A large number of firms• Similar but differentiated products• Low barriers to entry• Market power - Limited • Examples - Restaurants - Hotels

KEY FEATURES OF OLIGOPOLY*A few firms selling similar product  * Each firm produces branded products  * Likely to be significant entry barriers into the market in the long run  which allows firms to make supernormal profits. * Interdependence between competing firms.  Businesses have to take into account likely reactions of rivals to any change in price and output

Market ForcesMarket ForcesWe can see the two business organization such as Coke and Pepsi. These companies have responded to the same market forces.

Especially Oligopoly market structure have the price competition.price competition.

THEORIES ABOUT OLIGOPOLY PRICING (1) Oligopoly firms collaborate to charge the monopoly price and get monopoly profits  (2) Oligopoly firms compete on price so that price and profits will be the same as a competitive industry  (3) Oligopoly price and profits will be between the monopoly and competitive ends of the scale  (4) Oligopoly prices and profits are "indeterminate" because of the difficulties in modelling interdependent price and output decisions

Three Market Structures Oligopoly is one of four common market structures. The other three are: perfect competition monopoly, and monopolistic competition. The exhibit to the right illustrates how these four market structures form a continuum based on the relative degree of market control and the number of competitors in the market. In the middle of the market structure continuum, near the right end, is oligopoly, characterized by a few competitors and extensive market control.

Market Structure

Business EnvironmentsThe term Business environment is composed of two words “Business” and “Environment”- The word Business is its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earing profit. - Environment refers to the aspects of surroundings.

Business environment

We can divided business environment into two parts: “External” and “Internal”. External business environment is a set of (PEST) ;•Political•Economic•Social•Technological

Internal business environments

• Internal business Environment is the set of elements or forces which affects a organization’s or firm’s behavior.

Examples are;• Personnel • Finance• Marketing• Production• Operational research and so on

Cultural Environment

The activities of humans and their relationship with their environments now and in days of old are visible in cultural environment.

Cultural Environment

The significance of international trade to UK business organization

The United Kingdom’s economy is depended on foreign trade. The government also supports the international trade such as the World Trade Organization and the EU. Of the Kingdom’s 500 largest corporations, 60 are American. The United Kingdom’s main trade partner is the EU.

The significance of international trade to UK business organization

The 58 percent of the United Kingdom’s exports go to EU nations,12 percent of exports to Germany, France with 12 percent, Netherlands with 8 percent and the United State with 13 percent. The United State provides 14 percent of the Kingdom’s imports. Germany provides 13 percent, France 9 percent, Netherlands 7 percent and Italy 5 Percent respectively.

The significance of international trade to UK business organization The United Kingdom is the world’s

second-largest destination for investment. In 1997, the investment of Kingdom’s is US$138.8 billion.

Foreign companies provide 40 percent of exports. In 1998 there were 25,800 foreign companies in the United Kingdom.

For examples;•Germany is not a big country, if a company wants to earn more money, the only way is increasing the market through international trade.•BMW have their business all over the world. •political factors•environmental factors•social factors•technological factors•economic factors•legal factors

The global factors that influence the UK business organization

• Politics• Economy• Society• Technology

Political

• Political change- regime change through coup, violence, etc. Change in government through democratic election can influence future business strategy.

• Political Uncertainly- political uncertainly can lead to a fall investment by business and influence decisions on expansion and business ventures

Economic

• All these factors need to be considered in any business:

- Tax Systems- Investment Considerations and Allowances- Commodity prices- oil, energy etc.- Monetary and Fiscal policies- interest rate, government aid- International Regulation and Bureaucracy- Exchange Rates

Social

• The impact on the local environment not only affects human communities but can also cost inflict widespread ecological damage.

• Regligious Considerations, eg. selling condoms in staunchly Catholic countries

• Impact on the environment can impact on the businesses image

• Ethical considerations• Cultural issues

•

Technological

• Availability and developments in technology can have a powerful influence on global business strategy:

• e.g. - Access to bandwidth- PC ownership- Technology and sales- processing

payments and sales- Compatibility of

The impact of policies on the UK business organization- Over all economic policy organization's market demand, cost of finance,and taxation.-Industry policyprotection v free trade, Grants, sponsorship, investor protection, capacity-Environment and Infrastructure policyDistrubution

-Social policyWorkplace regulation, employment law, Labour supply, skills, education

-Foregin policyTrade pomotion, export credits EU and WTO obligation, export pormotion to allies

Here are some example of the way in which the policies influence the business today;1. Empolyment policy2. Regional policy3. Inflation policy4. Education and training policy5. Taxation policy6. International policy

The impact of policies of the European Union on UK business organization

• Small business Small business are disproportionately

affect by regulation. According to the European Commission, complying with regulations can cost a small business 10 times as much per employee as it costs a large company.