...Better Regulation for Growth Regulatory Quality and Competition Policy Investment Climate Advisory Services of the World Bank Group With funding from FIAS, the multi-donor investment climate advisory service in partnership with BETTER REGULATION FOR GROWTH GOVERNANCE FRAMEWORKS AND TOOLS FOR EFFECTIVE REGULATORY REFORM REGULATORY QUALITY AND COMPETITION POLICY INVESTMENT CLIMATE ADVISORY SERVICES WORLD BANK GROUP ©2010 The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. About the Investment Climate Advisory Services of the World Bank Group The Investment Climate...
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...Competition Policy in Bangladesh Consumer Welfare: Different Perspectives “Consumer welfare” has different meanings to different people. To the rich, who can afford the comforts of life, it usually concerns with the range of choice of goods and services. To the poor, who find it difficult to make ends meet, the most important concern is not choice but rather access to goods and services. Broadly speaking, the former aspect is more prevalent in the developed world. However, in developing countries, such as Bangladesh, the latter aspect is more important during the administration of competition policies. The different dimensions of consumer welfare need to be kept in view in order to make a market (economy) work efficiently. Purpose of Competition Policy Competition is an essential element in the efficient working of markets. It brings important benefits to the consumer by: * encouraging enterprise, innovation, efficiency and a widening of choice; * enabling consumers to buy the goods and services they want at the best possible price; * contributing to the national competitiveness. By “competition policy,” economists usually mean intervention by public authorities for ensuring competition in the markets. The basic objectives of competition policies are designed to promote competition by preventing agreements between firms that lead to anti-competitive behavior either through explicit cartels or through tacit collusion. Such policies also deal with monopoly...
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...The basic differences in principles between US and EU in competition policy For the topic of my essay I have chosen the differences between the US and the EU in the competition policy. First of all I would like to start my paper with the explanation of competition policy: what is it about, why is it necessary, why is it good for us. So what is competition policy? It should guarantee an equal competition between the companies on the market, based on their products and prices and none of them should have any unfair advantage as against the others. Under competition businesses have to offer the best quality products and at the best possible price to gain profit otherwise consumers can and will choose another company. There is a big pressure on the businesses and they often try to make their position safer with the bypassing of rules. With competition policy they try to avoid this anti-competitive behavior and to ensure perfect competition. The instruments which are used to avoid competition: -agreements between companies that restrict competition (for example cartels) -misuse of a dominant position (squeezing competitors out of market) -mergers -liberalisation of state-run monopolies -financial support for companies. These are the most important ones that the authority has to pay attention to. Why is it necessary and good? From the business side it is positive because they are motivated to be more efficient and more enterprising. From a consumer point of view we...
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...Throughout the development of the globalized economy, the EU has become a very attractive market for many companies around the world as producing and selling products in the EU becomes more popular. The EU has developed different competition policies in order to review, prevent or prosecute any anti-competitive behaviour and to protect the customer’s welfare. The challenge the EU now faces is how to achieve healthy competition and maintain customer welfare without derogating the free market. In the following, I will give an overview of the instruments which the EU uses to do so. It is stated in the Report on Competition Policy 2008 that “cartels are amongst the most serious violation of competition law”. Cartels have a profound negative impact on competition, pricing and innovation because they shield their participants from external competition, which allows them to raise prices, divide the market or limit production, which in turn can harm the consumer’s freedom of choice. Hence, companies have to pay high fines when the EU uncovers their cartels. Another problem the EU has to deal with is the monopolising positions of some firms. The abuse of such a position influences free competition and affects the consumer’s choice. Monopolists often try to create an unattractive market for competitors i.e. through dumping. A recent example of abuse of a monopolising position was the Microsoft case from 2007. During this case, the Commission made “a decision concluding that Microsoft...
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...Perspectives on EU Competition Policy Table of Contents Introduction 1 The 1989 Merger Regulation, Neofunctionalism and Spillover 2 M&As at the National and EC level 1983-1990 5 The Need for an Additional Approach: Regulation 1/2003 and New Institutionalism 6 Conclusion 9 Bibliography 10 Introduction Competition policy is a major policy area within the European Union (EU), and it has been a core executive function for the European Commission since 1962. Being an area of exclusive competence of the EU and with the Directorate-General of Competition (DG Competition) firmly in power, it constitutes an interesting case for understanding the European integration process and the contemporary consequences for business. Two major policy changes, in 1989 and in 2003, make it possible to investigate how to accurately explain the development in the area. I argue that until 2003, neofunctionalism offers the best analytical tools for understanding the process, as it accurately explains and predicts the expansion of the policy competences of the DG Competition through a variety of spillover-effects, mainly from the Single Market. But while neofunctionalism is analytically advantageous at the macro-level, it is applicable only to a point, as it cannot explain the apparent decentralization of executive power taking place with the introduction of Regulation 1/2003. Here more power was delegated to the national competition authorities (NCAs) at the surface, but at the same time...
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...Форма № Н-9.02 ХАРКІВСЬКИЙ НАЦІОНАЛЬНИЙ ЕКОНОМІЧНИЙ УНІВЕРСИТЕТ ІМЕНІ СЕМЕНА КУЗНЕЦЯ _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (повне найменування вищого навчального закладу) ФАКУЛЬТЕТ МЕНЕДЖМЕНТУ ТА МАРКЕТИНГУ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________...
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...date. Question #1: What policy regarding external competitiveness would you advise? List the options and the pros and cons of each policy option. Offer the rationale for your recommendation. Consider using information in Exhibits 7.3, Exhibit 7.4, and Exhibit 7.14 in making your recommendations. In order to effectively obtain and retain the most competent and highly skilled marketing manager for this particular startup company a substantial monetary return in relation to both base pay and total compensation will need to be implemented. This compensation structure will need to be at least 25 percent above market price based upon external competitiveness to, in turn, ensure that this particular individual is both drawn to the company as well as being highly motivated extrinsically while engaged in his/her duties. Within this particular scenario the pay policy that would be most effective and efficient is the pay-with-competition-policy. This policy strives to ensure that an organizations wage costs are generally equal to those in relation of its overall competitors within its target market as well as having the ability to entice applicants that will be generally equal to its initial labor market competitors. These are all very positive aspects of the pay-with-competition policy in relation to external competitiveness but there are apparent negatives which may surface as time progresses. A negative aspect of the pay-with-competition policy is that it’s aligned with the...
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...3.1. Competition in Telecommunications Services Experience has demonstrated that individuals can benefit from open competition by ensuring low prices, new and better products and services and expending consumer’s choice greater than what occurs under monopoly conditions. In an open market, producers compete to win consumers, by lowering the prices and developing new services that will best meet the needs of customers. A competitive market rewards the producers that are innovative; introduce new product and new production processes. By doing so the wealth of the society will increase, but in the competitive market may happen the opposite, there may be businesses that fail to understand consumer needs and they will face with decline in the number...
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...Part 4: Organisational Processes BOSS Magazine article Let’s Get Together Source: B. Head, “Let’s Get Together,” Boss Magazine, September 14, 2001, p. 52. The strategic alliance is redefining competition in the new networked economy. But to make the most of collaboration, you need to pay attention to age-old issues like trust. It took Siebel Systems six years to rise from start-up to star. By 2000 the software company was raking in $US1.8 billion annual revenues and ranked third on Fortune's 100 fastest growing companies list. This status came from forging alliances where it made sense and where it could. Siebel, founded in 1993, was early to market with e-business software, but being first wasn't enough. Siebel needed to fight off rival start-ups by developing critical mass fast; and that demanded the support of seasoned partners to help break into international corporate accounts. Today the company refers to its web of alliances with hardware companies, software companies, consulting firms and service providers as a "partner ecosystem". Siebel's is not an entirely benign ecosystem, though; it is inhabited by some of the most dangerous corporate predators in the IT sector - companies such as Microsoft, Cisco, Compaq and IBM. These are companies that compete and yet collaborate, and even while they collaborate they compete. Siebel's ecosystem is the tense model with which millennial management will have to come to grips. Dean Blomson, vice-president of consulting...
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...House of Kebab Contents 1 Introduction 2 1.1 Company Summary 2 1.2 Company Ownership 3 2 Five Forces Model and Analysis 4 2.1 Barriers To Entry 5 2.2 Supplier Power 8 2.3 Buyer Power 10 2.4 Threat of Substitutes 11 2.4.1 The Threat of Substitutes are High 11 2.5 Rivalry among Existing Firms 12 3 Conclusion 17 INTRODUCTION House of Kebab is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. House of Kebab will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. House of Kebab is the answer to an increasing demand for kebab and shawarma fast food. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in Kuala Lumpur, preferably in one of prominent housing estate. Later, our effort will be a further development of more retail outlets in the surrounding area. House of Kebab will entice youngsters to bring their friends and family with our innovative environment and our main focus will be serving high-quality food at a great value. COMPANY SUMMARY House of kebab sells specially made shawarma sandwich-like wrap usually composed of shaved lamb, goat, chicken, turkey, beef, or a mixture of meats and kebab which consist of thin slices cut from a cylindrical block of minced...
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...Four Market Structures Shavon Harrison ECON222 Kunsoo Choi What are the four market structures and their characteristics? According to McConnell and Brue (2004) describe four market structures that companies align themselves with during the course of their corporate lives.: “Pure Competition, Pure Monopoly, Monopolistic Competition and Oligopoly. Companies may move from market structure to market structure over the course of growth and time. This movement between structures may be the result of product changes, introduction of competition or consumer interests. McConnell and Brue (2004) also states that, pure competition is "a very large number of firms producing a standardized product". This is the case with the corn industry. One example of a pure competition corporation is "Farmers Cooperative Association" (FCA). A Farmers' Cooperative Association is a group of farmers, at their convenience, who come together to form a co-op in order to: improve bargaining power; reduce costs; obtain market access or broaden market opportunities and improve product or service quality (Nebraska Department of Agriculture, n.d.) that would normally not be achieved as an individual farmer. In doing so each farmer pays a fee to the Cooperation. The Cooperation itself is normally a non-profit organization in that the profit is attained back to the members supplying the product. Pricing is determined by the Board of Trade and is typically nonnegotiable. Cooperatives can hold corn at the request...
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...environment So if a company wants to analyse its external environment it must analyse the macro, industry and competitive environment. MACRO ENVIRONMENT: Influence the industry and firms inside it. These factors indirectly affect the organization but cannot be controlled by it. There are a number of common approaches how the external factors can be identified and examined. One approach could be the PESTEL analysis. PESTEL stands for political, economic, social, technological, the environmental and legal factor. The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis. Political factors • Taxation Policy • Trade regulations • Governmental stability • Unemployment Policy etc. Economical factors • Inflation rate • Growth in spending power • Rate of people in a pensionable age • Recession or Boom • Customer liquidations Socio-cultural • age distribution. • education levels. • income level. • consumerism. • diet & nutrition. • population growth • life expectancies • Religion Technological factors • Technological changes • New or improved distribution channels • Improved communication and knowledge transfer etc. • moral factor Environmental factors • Laws on • Waste disposal • Energy consumption • Pollution monitoring etc. Legal factors • Unemployment law • Health and safety • Product safety • Advertising...
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...phone service. The company has been able to stay ahead of the competition by innovating and providing the best solution to Canadians at home, in the workplace, and on the move. For them to continue to strive, they need accurate financial reporting and up-to-date accounting policies in today’s competitive environment. Introduction The telecom industry can be visualized as the largest operational network in the world. A global network that binds us all together; allowing us to connect with eachother regardless of geographical location. Although this industry was originally dominated by government owned monopolies, the industry has now turned to rapid deregulation which has resulted in a massive pool of new competitors. MARKET & STRATEGY Basic telephone calls were the first revenue generator in the industry; but now texting and high speed internet is pushing the market to new frontiers. Residential and small business markets are the toughest, with literally hundreds of players in the market relying heavily on price and brand name strength (Porter). The corporate market on the otherhand is more concerned with quality, reliability, and data delivery – while being less price sensititive than other customers (Porter). Although the telecommunications industry has been very competitive as new key players enter the market with better features and pricing, Telus has always managed to stay one step ahead of the competition. The company as we now know it today is the incumbent telecommunications...
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...Topic: Select one organization of choice to evaluate the forces of change affecting the chosen organization in achieving its organizational goals and objective Recommend how management could further enhance their response to opportunities and threats associated with organizational change. Introduction In today’s fast growing global business environment, change is needed to keep up with competition, to innovate products or services to meet the global needs in business. The Group choose AB smart industries a manufacturing company to understand the issues and need of change and how the change is managed and achieved Company Background: AB smart industries established in 1998 it is the only screw rivet producer in Bangladesh. AB smart industries is a manufacturing company which manufactures fasteners screws nails rivets clams etc Research Objective: -To identify the issue of organizational change -How OCM strategy will facilitate the company -Appropriate recommendation on how management could improve their response to the opportunities and threats associated with organizational change. Overview: Fasteners are screws, bolts rivets, nuts, washers, and pins etc. These are needed to assemble doors vehicle, machine, equipments even toys. From the most sophisticated space missile to the simplest of children's toys. Fasteners are usually needed in large quantities. These are produced by most countries in the world now...
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...deal in terms of quantity, quality and pricing. The firm may find it easy to produce inferior or substandard goods if it wishes because t the end of the day they know very well that the items will be purchased as there are no competing products for the already available market. 2. Dissatisfied consumers- consumers get a raw deal from a monopoly market because quality will be compromised. Therefore it is not a wonder to see very dissatisfied consumers who often complain about the firm’s products 3. Higher prices- no competition in the market means absence of such things as price wars that may have benefited the consumer and as a result of this monopoly firms tend to charge higher prices on goods and services hence inconveniencing the buyer. 4. Price discrimination- monopoly firms are also sometimes known for practicing price discrimination where they charge different prices on the same product for different consumers. 5. Inferior goods and services- competition is minimal or totally absent and as such the monopoly firm may willingly produce inferior goods and services because after all they know the goods will not fail to sell. 1st Disadvantages of Monopoly – Lower quality at higher prices Companies having monopoly over a product are bound to take advantage of the fact that the consumers have no other choice but to buy that company’s product. So, the company dictates its prices and terms of business. This not only harms the consumers but also the quality of the product produced...
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