Market Structure Assignment Example | Topics and Well Written Essays - 2000 words

Market Structure - Assignment Example It is a more realistic market structure in which a few firms dominate the market, and are able to influence the conditions to a greater extent. Although, there may be many small firms operation in the same market, but they will just follow the lead of the few firms. (Krugman, 2012) KFC is an example of monopolistic competition. The firm is competing against the same-sized restaurants like Wendy’s, McDonalds, Pizza Hut and others. These firms try to differentiate their products and then price them accordingly. Wireless service providers are a good example of a n oligopoly structure in the area. Four of the firms namely AT&T Mobility, Verizon Wireless, T-Mobile and Sprint Nexte dominate the market and control around 89 percent of the total telephone service market in the United States. US Postal Service is still one of the monopolies operating in every city of the United States. The firm has a potential high barrier to entry- a license from the US government, has the potential to influence the market conditions as well as it does still have unique product attached to itself. There are empirical studies present that specifically tell us the relationship between the barriers to entry and long term profitability of the firms. Research evidence suggests that the firms will set the price close to the cost if the barriers to entry are non-existent or low in a particular market. In this case, the firms do make a bigger profit in the short run; however, they believe that the entrance of the new firms and competition, the profits will erode. (Krugman, 2012) In a monopoly, the barriers to entry are really high which protects the market from strong competitive pressures. These barriers could be licensing, patents and economies of scale. Therefore, the firm earns a high profit in the long run. However, there will be time when the long run profits will not be positive. When the average total cost curve is above the demand curve, the

The impacts of motivation on works and staff,which encourage employees Dissertation

The impacts of motivation on works and staff,which encourage employees to work in Saudi private sector - Dissertation Example SABIC controls over 10% of the international petrochemical market (30). It has entered into joint ventures and partnerships with foreign organizations like Shell, ExxonMobil and numerous other American, European and Asian companies (Cordesman, 2006). SABIC is a true reflection of the intention of the government of Saudi Arabia to involve private sector investment and participoation in the growth and development of the nation. As such, 70% of SABIC is owned by the government while the remaining 30% distributed among private owners (SABIC, 2011). The government further plans to divest the various company holdings and accelerate the privatization process. In the light of the Saudi Arabia’s policy to encourage Saudization or to ensure that the private sector organizations employ a substantial number of local employees (), it is essential to study the factors that help in attracting recruitment and which keep the local employees motivated and loyal to the company. While the Saudiza tion program was initiated as early as 2006, with the objective of increasing the private sector local workforce to 30%, the current statistics reveal that the actual fraction of local employees in private sector is less than 10%. ... mean that there is a low level of motivation among the local employees either to get selected in the private sector, or to work in such an organization. This is very little research undertaken within the private sector to understand why the sector lacks in local participation, or what makes it attractive to the expatriates and not the local workforce alone Al-Eisa, Furayyan, & Alhmeoud, 2009). However, this is a major issue that the government of Saudi Arabia is facing, and hence there is a need to study the problem intricately so as to S SABIC provides a dynamic environment where the changes that facilitate privatization are visible as can be seen in the recent changes to its human resource policies and packages. The organization employes a vast majority of both local and foreign workers and has been tasked with keeping the workforce trained and qualified as well as motivated to work. A research into the policies, practices and Human resource strategies in SABIC are expected to prov ide insights about how organizations in Saudi Arabia, especially, the private oraganizations, can motivate and retain their employees. Research Objectives In the light of the above background, the following research objectives are found useful for the current research: -To examine the factors that affect employees and staff motivation in Saudi Arabian firms - To define the role of motivation in achieving job satisfaction in Saudi Arabian petrochemical organizations. -To find out whether employee motivation is related to higher performance and low employee turnover in the context of Saudi Arabia Research Methods The research is conducted using both primary and secondary methods. The secondary method consists of an exhaustive literature survey and review where topics like employee motivation