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Monopoly is the ability of a single seller or organization to dominate a particular market
Monopoly
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Monopoly
Introduction
Monopoly is the ability of a single seller or organization to dominate a particular market. There are several factors which lead to a monopoly within a region and the common ones are; a particular organization owning essential resource, the inability of other industries to participate in the production of a particular product because of factors such as price, and government of a distinct region restricting other organizations from producing a particular product. Just like any other idea, the monopoly has unique characteristics. Several factors favor monopoly, which leads to its existence in various societies. The whole idea behind the monopoly also has both advantages and disadvantages.
Characteristics of Monopoly
Every setting within the idea of monopoly has precise characteristics, which are unique identifiers. One of the significant characteristics of a monopoly is profit maximizer. Organizations that practice monopoly barely face competition (Monopolistic Markets – Overview, Characteristics, and Regulation, 2020). This enables most organizations to determine the prices of different commodities within a precise market setting. Several organizations that involve themselves in monopoly tend to hike the prices of products in the market. The prices are usually compared to situations in which are markets have competition from different organizations.
Monopoly tends to determine the prices of precisely within the market. The prices are in terms of the quantity which are produced by organizations. The industries choose to increase the prices or decrease them at will (mzacharias, 2019). This is because there are no strict rules which govern how specific prices are supposed to be set for precise goods within the market.
Multiple new organizations keep on rising within the market that can offer significant competition. Organizations that have been practicing tend to dominate the market because various barriers exist, such as a single organization owning primary resources and restricting other emerging industries from using the essential resource. There are times when governments play a significant role when it comes to creating rules that act as barriers to emerging industries.
Factors that Favor Monopoly
There are several factors which make a monopoly to exist in the various market setting. The current era is marked by activities of copying ideas and innovative inventions. One of how individuals or organizations protect their ideas and inventions is through copyright rules, which exist in most countries globally (Meagan, 2018). Copyright rules tend to give an organization authority to own a precise good to own the product for a certain period. The primary aim of copyright rules in various industries is usually to enable the owner of the idea or product to regain the funds or expenses they used to create the idea. The rules are strict to an extent whereby the good owner is the one who determines the individuals who can alter the idea or benefit from it.
On the other hand, the government tends to play a significant role when it comes to creating a monopoly. There are times when governments create a monopoly so that they can benefit on their own. The government creates law and regulations which are in favor of their ideas within the market. There are several external personnel who are involved in the government-granted monopoly (mzacharias, 2019). Such individuals only make decisions within the business, but the major parties that benefit from the profit or outcomes are the government itself.
The economic scale creates a barrier for other organizations to involve themselves in joining a precise market setting. The primary industries that benefit from the economic scale are the ones that have been in the business for decades and have had enormous development. Such industries tend to have an added advantage when it comes to production. This is because organizations can access funds from various banks due to their popularity and scale. The scale of the economy within industries also generates a network effect (Meagan, 2018). This is when products from a particular organization are used by several individuals, making the same products preferred compared to products from other industries that offer competition.
Advantages of Monopoly
The funds generated from a monopoly can be used to support investment, which requires several resources in terms of money. The funding is usually possible because of the enormous amount of money generated from monopoly activities (Carare, 2016). One of the significant ways in which industries that enjoy monopoly benefit from the whole idea of dominating the market is through research on methods of service improvement. One of the primary industry which has been benefitting from monopoly for several years is the drug production organizations. There is a high probability of failure in drug production, thus the need for monopoly.
An enormous economic scale tends to lead to a lower cost of producing products. This is advantageous to consumers of various products within the market, whereby the target audience can acquire the goods at a lower cost (Carare, 2016). Industries such as the ones in charge of tap water are the ones that benefit from the idea enormous economic scale. Such industries are known as natural monopolies.
Monopoly industries tend to face multiple competitions when it comes to international affairs. Several governments are supporting their industries’ involvement in international business. One of the significant characteristics of international business is that they tend to be full of competition (Carare, 2016). This is because the whole idea involves different countries that have their specific industries. Local monopoly enables organizations to adapt to international requirements, which are quality on most occasions.
Disadvantages of monopoly
Industries that dominate a particular market tend to exploit their target audience. There are multiple occasions in which organizations decide when to increase or decrease the prices of their goods. The target audience usually adheres whenever there is a price change because they have limited options for acquiring goods (Meagan, 2018). Organizations can lower their service delivery quality because they are the only organization within a particular market. Organizations have an opportunity to discriminate against the target audience in terms of prices. This is evident whereby organizations can either set high or low prices of goods for specific consumers.
Monopoly tends to favor the idea of lack of improvement in service delivery towards a precise target audience. This is because industries prone to monopoly barely have competition; thus, they have the freedom to conduct activities the way they want (Carare, 2016). The consumer preference can also be ignored with ease.
Conclusion
The whole idea behind the monopoly has precise characteristics such as maximization of prices amongst others. Several factors favor monopoly in various regions, such as the high cost of production. On the other hand, the government plays a significant role in the monopoly by creating rules that either favors their industries or precise organizations that work in conjunction with them. There are multiple advantages and disadvantages when it comes to monopoly. One of the significant advantages of monopoly is the idea of enabling a precise organization to compete effectively when it comes to international affairs. Monopoly also tends to exploit target audience who depend on particular industries for products and services.
References
Carare, P. M. (2016). Monopoly: Advantages and Disadvantages. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1787089
Meagan. (2018). Advantages and Disadvantages of Monopolies – TO CONSUMERS AND SOCIETY. Getrevising.co.uk. https://getrevising.co.uk/grids/advantages-and-disadvantages-of-monopolies-to-2
Monopolistic Markets – Overvierw, Characteristics, and Regulation. (2020). Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/knowledge/economics/monopolistic-markets/
mzacharias. (2019, March 10). Are There Monopolies in 2019? Fordham.Edu. https://news.law.fordham.edu/jcfl/2019/03/10/are-there-monopolies-in-2019/
Motivating High School Students
Motivating High School Students
English Composition
December 20th, 2010
Motivating High School Students
Introduction
Economists and policy makers understand human capital as skills and knowledge that people require in order to be employed as well as to thrive in the modern economy. In education, skills and knowledge are measurable but they represent a component that is superficial in the human capital. There is need for teachers to address the underlying human capital components for the education reforms to be effective. The underlying components may be difficult to measure or uncomfortable to discuss and they include cultural capital, social capital, moral capital, cognitive capital and aspirational capital (Douglas, 2007).
Underlying human capital components
Cultural capital refers to habits, emotional dispositions, linguistic assumptions as well as assumptions that people adopt in childhood. Majority of these including likes and dislikes are adopted by children by the age. Teachers should employ enthusiasm while teaching which leaves the student eager, attentive and motivated. There is need to encourage students to adopt habits that are acceptable by the society such as the ability to work well in a group. This will make the students more acceptable by their peers and other members of the community. It is important to note that what happens at home affects the educational achievement of the child more than the occurrences in the school. Most cases of absenteeism in school could be linked to childhood family factors and thus there is need to involve the parents in the child’s education. There is need for the teachers to understand that some sense of humor and a positive attitude will go a long way in motivating students to become more interested in education.
Social capital is the knowledge required by an individual to conduct themselves in a group or an institution. For one to live harmoniously in such a society, knowledge on the fundamental rules of being courteous is a requirement. There is a relationship between grades, status expectations and social capital; however the strongest association is with language measures. This indicates that bilinguals could have some special benefits for acquiring institutional support required for the school’s success as well as social mobility (Stanton-Salazar & Dornbusch, 1995). This involves being able to interact with other people in a positive or productive way and it is important as it makes a person more attractive to employers and generally the community. For the students to be desirable members of the community it is important to inform them on the negative effects of drug and substance abuse on their education. Teamwork should be emphasized to enable student work together with others including their peers and be productive (Sharan and Tan, 2008). The aim is to enhance quality in all aspects of responsibility to enhance knowledge and skills of each team member. Teamwork could be enhanced through the inclusion of cooperative strategies of leaning into lesson plans whereby students are put into groups which appeal to the social nature of teenagers. The students can be more involved by making them responsible for the different aspects of the group.
Moral capital is the trustworthiness of an individual and keeping of time especially when it comes to assignments. To motivate students to be responsible and be able to make their own decisions they could be provided with a choice as to which questions to answer and also the books to read. This way they are provided with a chance to be independent and allow them to direct their experience in learning. Some moral characteristics need to be emphasized, such as thriftiness and honesty especially in exams so that students can learn effectively and ask questions concerning the areas where they did not understand. Students ought to acquire traits such as organization skills, should be people who can be depended on and able to work under minimal supervision.
Cognitive capital refers to the ability of people to assess capabilities or sense the feelings of others. This indicates that the students should perceive the classroom structures as well as class work as vital for the success in the future (Greene et al, 2004). Student should be able to make proper and accurate assessments for themselves in relation to their abilities as well as what they are capable of. This could be enhanced by providing the students with a set of questions for assignments and let them make choices on which questions that they could be able to answer effectively and it could assist them develop a proper evaluation of themselves as to what they could do. This is important especially when it comes to making career choices for them to set appropriate goals.
Aspirational capital refers to the ability to sustain hopes as well as dreams for the future, even in the presence of real and perceived barriers. This is the desire to achieve and thus students should perceive the present class work as a crucial part of the success in the future. There is a necessity for students to have an innate desire to succeed in their education and in life in general. Hence the lesson plans should contain a relevant subject matter which is current as well as relevant and creative so that the students will pay close attention to the material. Even though students feel as if they are not capable of succeeding in education they should endure and keep their spirits up while in school. It is the basic desire of humans to work as a team and create value to be successful and thus group work should be encouraged.
Conclusion
Education is an important component in the acquisition of information and skills, but there are underlying factors that affect the education process. For a student to be successful there is need for them to be able to interact well with others, be a team player, trustworthy, honest, able to assess their abilities effectively and keep their dreams of the future in spite of the present situation. The teacher could include current and relevant information; present the students with alternative questions to answer, allow the students to display their talents, show care and understanding to the teenagers.
References
Douglass, J. B. (2007). The conditions for admission: access, equity and the social contract of public universities. California. Stanford University Press.
Greene, B. A. et al. (2004). Predicting high school student’s cognitive engagement and achievement: Contributions of classroom perceptions and motivation vol. 29 pp 462-482. Oklahoma. University of Oklahoma.
Sharan, S. & Tan, I. G. (2008). Organizing schools for productive learning. Tokyo. Springer.
Stanton-Salazar, R. D. & Dornbusch. S. M. (1995). Sociology of education: Social Capital and the Reproduction of Inequality: Information Networks among Mexican-Origin High School Students Vol. 68. Pp 116-135. JSTOR.
Acquisition Strategy Paper
Acquisition Strategy Paper
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Introduction
Mergers and acquisitions have become crucial strategies for many companies, especially when they do not have access to the necessary resources and supplies. Acquisition strategies serve as checklists for company owners to ascertain that all crucial issues are properly addressed, and the possible alternatives considered thoroughly, prior to the mergers. Acquisitions refer to a blend in which a certain company takes over another firm’s operations. This presents companies with favorable and strategic options for attaining economies in their operations, thereby strengthening the competitiveness and competencies of the resulting company. In addition, it opens up other avenues for the company to operate in new markets.
TATA GROUP acquisition
The TATA group of companies has been one of the major players in the automobile industry. The group has been engaging in substantial acquisitions to such an extent that it has more than 90 companies in its fold. It has interests in various fields such as tea, automobile, telecommunications and steel among others. One of its most recent and significant acquisition was in January 2007 when it pulled of the largest takeover in India. It acquired an overseas company called Corus, an Anglo-Dutch steel maker. The acquisition, which cost the group $12 billion, propped the group to a prestigious position as the fifth largest producer of steel in the world. One year prior to the acquisition, the group had acquired NatSteel a Singaporean company, which has considerable presence in China, Thailand, the Philippines, Vietnam and Australia.
Cisco Systems Inc acquisition of Cerent Corporation and Monterey Networks Inc
In 1999, Cisco Systems Inc announced that definitive agreements had been reached to acquire the two companies for $7.4 billion in stock. The acquisitions allowed the company to enter a new market, optical transport market, which analysts predicted would be a more than $10 billion market. The acquisitions were considered significant since they broadened the optical product portfolio of Cisco, thereby helping customers to optimize on New World solutions. They also provided the service providers with a fast migration from the conventional circuit-based networks to packet-based networks and New World cells.
There are varied reasons and benefits that companies hope to achieve through the acquisition of other firms. All in all, the acquisitions are aimed at enhancing the competitive capabilities and strengths of the acquiring company.
Acquisitions increase the market power of the acquiring company. The acquisition of the steel maker by the TATA group increased its market power, propelling it to a pronounced position as the fifth largest steel producer in the world. This is the same case with Cisco, whose acquisition of the two companies enhanced its position in the market (Sam 2007). This is especially having in mind that Cerent is a leading next-generation optical transport products developer, while Monterey is a significant player in the innovation of infrastructure-class, optical cross-connect technology used in increasing the capacity of networks at optical networks’ center. With the increased market power, the acquiring companies have enhanced abilities to exploit their fundamental competencies thereby increasing their strengths (Sam 2007). It is noteworthy that the two companies engaged in horizontal acquisitions, where they bought businesses in an industry that was highly related to theirs or even competitors. This has not only allowed the company to optimize on its core competence but also to have a competitive advantage in the primary markets.
In addition, the acquisitions have increased the acquiring company’s diversification. In essence, companies have an easy time developing new products and engaging in new ventures, in the current markets due to market-related knowledge. Acquisitions have become popular as horizontal or related diversification strategies, which enable the acquiring companies to move rapidly into related markets thereby increasing their market power, as unrelated strategies for diversification. Horizontal acquisitions have particularly been found tremendously successful as they contribute immensely to strategic competitiveness (Sam 2007).
Moreover, the acquisitions allowed the companies to overcome the entry barrier in the markets. Barriers to entry are factors that relate to the market and companies in those markets that heighten the difficulty and the cost for new companies to enter those markets. The new companies may, therefore, be required to invest immensely in large-scale manufacturing facilities to ensure that they have economies of scale enabling them to compete with existing companies. They may also need engage in massive advertisement in order to overcome the brand loyalty enjoyed by the existing brands. High barriers to entry increase the attractiveness of acquisitions. In essence, the two companies have acquired others that already have a significant presence in the industry or markets (Bruce & Walter 1995). This means that they have achieved an immediate market access and gained brands that have access to the existing channels of distribution, not to mention the brand loyalty that they command in the market. On the same note, acquisitions increase the speed of the company in the market. It is noteworthy that the acquisitions enable the rapid entry of companies into the markets and is less costly to than developing customer relationship as a new player (Bruce & Walter 1995).
Acquisitions also pose lower risks than developing new products. Entering a new market and gaining a significant return on investment would require considerable time and resources. In the case of acquisitions, their outcomes can be accurately estimated in which case they have a lower risk than developing new products (Bruce & Walter 1995).
Conclusion
Strategic acquisitions have become popular with many companies these days. This is due to the opportunities that they present to companies in enhancing their positions in the market. They increase the companies’ competitiveness and capabilities in the market while lowering the risk involved.
References
Sam P. D, (2007). Strategic Acquisitions, Divestment, and Lbo: Global Dealmaking. New York: Booksurge Publishing
Bruce R. R & Walter P. (1995). Strategic acquisitions: a guide to growing and enhancing the value of your business. New York: Irwin Professional Pub
(Sam 2007)
(Bruce & Walter 1995)