Free Essay on Different Market Structures for Businesses and Consumers.

Published: 2019-10-16
Free Essay on Different Market Structures for Businesses and Consumers.
Categories:  Economics Business Government
Pages: 7
Wordcount: 1734 words
15 min read

The business domain incorporates an array of businesses and organizations all falling under specific market structures irrespective of the extent of the business, or the kind of underlying products. Numerous organizations move through the greater part of the structures as new products are developed, and different products and services are inquired about, and later created to an, even more, updates product or service that better meets consumer needs. Successively, with the development of new products, competition intensifies in light of the heightened availability of resources. Subsequently, technological advancements and innovation prove immensely valuable to businesses and consumers. The expansion of innovation necessarily present entryways to new as well as existing firms. Companies like Google should, therefore, have a tight handle of their market structures. Comprehension and efficient alignment of market structures enhance the allocation all resources be it financial or physical, profitability, and even the life of the business itself. Additionally, pricing strategies that are encompassed in market structures change as these structures shift after some time. Google case study illustrates how progressive means of production and innovation impact a firms survival. It also demonstrates how new products and services as well as heightened social awareness help to keep up the clients and their interests. Organizations can be active in every level of market structure as illustrated by the backdrop, as longs as they comprehend the attributes of the distinctive sorts of market structures, and how each might affect their primary objectives.

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Market Structure that best describes the market for internet searches.

The last decade has seen numerous entrants into the Internet search market. Yahoo started off as the primary market leader, but the recent entrants have seen Google take up the top most spot. Taking a gander at Googles investigations in the recent past, it is clear that the company presents a plausible and unique aspect of the monopolistic search engine. However, the Federal Trade Commission cleared Google of the favoring allegations citing an antitrust violation. Be that as it may, Googles dominance in the main global markets has not completely locked out new entrants. The internet has continuously encouraged the development of new markets portrayed by progressed estimation, expanded customization, quick development, and more cognizant business sector outline. These progressions coupled up with a portion of the financial hypothesis have been valuable in marketing and business-to-business stages. The growth of these internet markets has intensified competition as various search engine platforms compete for consumers.

Consequently, the competitive structure of the search engine market and how it changes can have considerable positive or negative impacts on the underlying firms. Businesses can be more profitable in markets structures characterized by restrictions to new entrants and fewer competitors. Markets organized around standard products and services as is the case in search engine markets, tend to have lesser restrictions to entrants hence giving rise to increased competition. Search engine business is therefore better suited to operate in the competitive structures. They build up their systems of activities to either overcome entrant restriction and access a corporate sector with small competition or utilize a characteristic cost favorable position to profit in a profoundly competitive corporate sector.

Question Two:

The main activities pursued by government in mixed economic systems

Succinctly, mixed economic systems allude to an economy that includes the elements of both socialist and capitalist economy. A mixed economy, therefore, depends on the standards of the free market component and centrally arranged financial framework. The government dependably urges firms in the private sector to take a shot at the guideline of the free market system under a legislative, political and economic approach. A mixed economy also encompasses a public sector that is actively involved in the development and improvement of public utilities based on a socialist strategy. Consequently, the government operates various industries in the public sector through legislative oversight, ownership, and management. Also, a mixed economy is governed by laws and regulations that are imposed and executed by the government in endeavors to limit the passage of private businesses in commercial enterprises held for the general population segment. Additionally, the government is tasked with the primary objective of progressive public sector expansion. In so doing, the government often nationalizes private endeavors. Other than working for the development and advancement of the public domain, mixed economy governments, control the exercises of the private segment by actualizing different financial and legislative strategies.

In synopsis, governments control mixed economies by enacting guidelines to secure the producers and consumers in the business sector. Control additionally serves as a method for guaranteeing that mixed economies use monetary assets productively and distribute rare assets in an experimentally dependable way. Governments arrange the essential creation focuses on private commercial ventures while securing the protection, open utility administrations, and substantial businesses. The monetary disparity is additionally minimized in a mixed economy since resources get redistributed through tax collection and government appropriations.

How businesses may influence the government through lobbying

Today, big corporations are in a position to increase political influence owing to their greater financial access and in this manner, can change laws and market regulations to suit their personal gains. These corporations can influence governments through various ways such as lobbying, funding, and administrative organizations. Corporations can lobby governments by contracting lobbyists to impact the choice of the administration arrangements. By direct campaigning, the delegates of an organization meet congresspersons or staff individuals to educate about the reason for their industry and persuade authorities to settle on rulings for the organization. An additional favorable position for enterprises is that they can term their lobbyist activities as a business.

There is an array of ways in which big corporations lobby or control governments key among them being control of the web. Whereas it may not be able to control the government by influencing a section of the executive of a few leader as was the case before, control of online content has proven to be an effective lobbyist strategy. Dominant corporations in the internet market like Google can use their dominance to flood the Internet with positive information and make negative information about them less popular. In so doing, the government may then be swayed to their side.

Question Three:

According to an article in the Guardian, Google donated funds to approximately 160 members of Congress in the eve of the previous elections (Smith, 2015). This led to increased concerns over the corporations lobbying influence in a market that it dominates. The lobbying endeavors are believed to be Googles plan enact pressure on the European Union where the company has been facing challenges. This revelation coupled up with the fact that the Chief Technology Officer is an ex-Google employee, is a clear indication of the companys close connection with the federal government in the US. Despite the companys humble beginnings, it has now risen to a giant global corporation with lobbyists pushing for its agendas across many platforms. Most remarkably, the company is said to have spent the most finances on lobbying endeavors compared to other corporations. In 2013, the UK had vowed to reform lobbying following numerous accusations (BBC, 2013). The prime minister had also warned of lobbying as the next scandal waiting to explode. The government then sought to increase transparency and enact stringent laws and regulations around the issue.

During a parliamentary hearing, Googles European head was put in an awkward position when he declined to state his income (Cellan-Jones, 2016). His company was further accused of painting itself to be on a superior mission as opposed to profit maximization which many argue that is not the actual case. Many critics claim that Googles move to set on a higher mission only came to be following Facebooks entry into the stock market. The endeavors can, therefore, be viewed as lobbyist moves. On the other hand, in Europe, UK had vowed to reform lobbying following numerous accusations (BBC, 2013).

In 2004, in the offer document sent to potential shareholders when Google floated, the founding directors affirmed that Google was not an ordinary organization (Cellan-Jones, 2016). They were not planning on winding up as one either. Their solid perspective was the mirrored by the popular dont be evil principle upon which the company prides itself in. The giant corporation that Google is today is not the only one amongst innovation organizations in this craving to paint itself as being on a higher mission. When Facebook entered the stock market, it has spoken much more about its longing to individuals share and associate than mere profit maximization.

Question Four:

Where Google should be positioned on Carrols pyramid of CSR

Researchers and relevant stakeholders in the business domain are yet to come to a unanimous consensus on what constitutes a corporate social regulation. Be that as it may, most of them concur that companies need to work with an eye on the social and natural outcomes of their business interests. Successively, Carrol pyramid of social responsibility underscored diverse levels of moral sympathy toward associations, which were ventured to expand on each other, similar to a chain of command (Carroll, 1979). At the base were financial objectives amplifying benefits and minimizing misfortunes. The legitimate level constituted adherence to neighborhood, state, and national laws and administrative strategy. The following level concentrated on the moral obligation to partners and society to produce products and administrations that did not bring about mischief through reasonable and just means.

Borrowing from the backdrop above, Google should be positioned on the ethical responsibilities section. Carroll's ethical viewpoint alludes to the general public's point of view of a decent conduct. It likewise incorporates the standards or desires which are not composed in law, at the end of the day, the ethical esteem and rights. Besides, firms are committed to acting willfully past their business degree and normal moral acts. This is known as the generous obligation, such as Googles charitable website and its socially sensitive mantra, Dont be Evil.' The corporations philanthropic endeavors depict its ethics and strong societal goals. The social and altruistic obligation that Google adopts serve as an ethical guideline hence its suitability to be placed on the ethical responsibilities on Carrolls Pyramid of Corporate Social Responsibility.

Question Five.

Important stakeholders for Google in Europe:

As a global corporation, Google has diverse groups of stakeholders. In Europe, the corporation owes its diversified stakeholders to its far-reaching variety of products and services which incorporate original as well as recent services. To keep up its dominance on the internet search...

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