lallallallalla....

MGT 420..

we learn about organizing effective and efficiency.. :)

A company is in a constant struggle to balance efficiency and effectiveness, it is a delicate balance to achieve because overall performance of an organization is measured by customer satisfaction.  If a company decides that there are too many layers, for example, in the labor force, jobs could be eliminated to improve efficiency, but might result in a reduction in the company's ability to effectively serve the needs of their customers.If a company wants to reduce costs with regard to overall expenses, in an effort to utilize resources, such as employees, more efficiently, a company might decide to reduce the workforce, let's say in a factory.  So the factory workers are now required to work harder to make up for the smaller size in the staff, but this also requires them to work overtime to meet demand, which results in 1. expenses on overtime pay, which might be more than regular salaries, and could result in health issues with the workers who become exhausted from the faster pace in the work environment.More mistakes could result from employees who are always straining to meet production quotas, which eventually results in customer dissatisfaction with inferior product.  The natural outcome will be that customers will discontinue buying the product because the company can no longer be regarded as reliable.Another example of a struggle between effectiveness and efficiency or output is found in the mail-order business with regard to shipments and distribution.  In most cases, there is an inspected by ticket or a check mark next to the item on the order sheet,  placed in the package that allows the customer to understand that their order was verified after it was placed in the box, before it was sealed and shipped.If you purchase merchandise from a certain mail-order catalog and your order arrives incomplete or contains the wrong size or color item, this causes you an inconvenience as a customer, you are not happy with your purchase, your post-purchase dissonance is negative, it leaves an impression with you that will influence your purchases in the future.What the customer does not know is that the company just eliminated several jobs, among the inspectors, because they were taking too long to do their job and the shipping process was delayed.  The company wants the shipping process to be quicker, so they don't use the inspectors anymore and packages are sealed without a final inspection, and many order are incorrect.In the name of efficiency of resources, costs particularly, effectiveness has been reduced.

ECO 415

my group need to present today about monopolistic..

Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.

In a monopolistically competitive market, firms can behave like monopolies in the short run, including by using market power to generate profit. In the long run, however, other firms enter the market and the benefits of differentiation decrease with competition; the market becomes more like a perfectly competitive one where firms cannot gain economic profit. In practice, however, if consumer rationality/innovativeness is low and heuristics are preferred, monopolistic competition can fall into natural monopoly, even in the complete absence of government intervention. In the presence of coercive government, monopolistic competition will fall into government-granted monopoly. Unlike perfect competition, the firm maintains spare capacity. Models of monopolistic competition are often used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal,clothing, shoes, and service industries in large cities. The "founding father" of the theory of monopolistic competition is Edward Hastings Chamberlin, who wrote a pioneering book on the subject, Theory of Monopolistic Competition (1933). Joan Robinson published a bookThe Economics of imperfect competition with a comparable theme of distinguishing perfect from imperfect competition.

Monopolistically competitive markets have the following characteristics:

• There are many producers and many consumers in the market, and no business has total control over the market price.
• Consumers perceive that there are non-price differences among the competitors' products.
• There are few barriers to entry and exit.
• Producers have a degree of control over price.

The long-run characteristics of a monopolistically competitive market are almost the same as a perfectly competitive market. Two differences between the two are that monopolistic competition produces heterogeneous products and that monopolistic competition involves a great deal of non-price competition, which is based on subtle product differentiation. A firm making profits in the short run will nonetheless only break even in the long run because demand will decrease and average total cost will increase. This means in the long run, a monopolistically competitive firm will make zero economic profit. This illustrates the amount of influence the firm has over the market; because of brand loyalty, it can raise its prices without losing all of its customers. This means that an individual firm's demand curve is downward sloping, in contrast to perfect competition, which has a perfectly elastic demand schedule.