Abdulkadir sugal, Master Management

Engineering

Introduction of Competition

Competition means activity in which businesses try

to win in a certain market by defeating others which

are trying to do the same. It can be also defined as the

battle vying for customers’ acceptance

competition is the rivalry among sellers trying to

achieve such goals as increasing profits, market share,

and sales volume by varying the elements of the

marketing mix: price, product, distribution, and

promotion.

Competition is generally accepted as a

necessary condition for the coordination of

disparate individuals interests via the market

process.

Abdulkadir sugal, Master Management

Engineering

Competition in business

• Companies making similar products compete

in the areas of wholesale price, innovations,

marketing and distribution, among other

areas. These businesses sell their product to

retail outlets and stores that may handle a

range of similar products

• Competition between businesses or stores

consists of trying to get the customer to buy

their product instead of the one offered by the

competitor.

Abdulkadir sugal, Master Management

Engineering

Competition in business is a

very important

Low prices for all: the simplest way for a company

to gain a high market share is to offer a better

price. In a competitive market, prices are pushed

down. Not only is this good for consumers - when

more people can afford to buy products, it

encourages businesses to produce and boosts

the economy in general.

Better quality: Competition also encourages

businesses to improve the quality of goods and

services they sell – to attract more customers and

expand market share. Quality can mean various

things: products that last longer or work better,

better after-sales or technical support or friendlier

and better service.Abdulkadir sugal, Master Management

Engineering

Competition in business is a

very important

More choice: In a competitive market,

businesses will try to make their products

different from the rest. This results in greater

choice – so consumers can select the product

that offers the right balance between price

and quality.

Innovation: To deliver this choice, and

produce better products, businesses need to

be innovative – in their product concepts,

design, production techniques, services etc.

Abdulkadir sugal, Master Management

Engineering

Understanding to your

competition

A clear understanding of your competition is

key to the success of any business. Even if

your product or service fills a unique gap in

the market, there are always other companies

offering something similar, or there are other

ways to satisfy the same customer’s need.

Competition can be either direct (competing

by selling the same products) or indirect

(competing for the same market). The

intensity of that competition, whether direct or

indirect, will affect the overall potential for

success of your business.Abdulkadir sugal, Master Management

Engineering

Abdulkadir sugal, Master Management

Engineering

Direct competition & indirect

competition

Direct competition

Multiple businesses offering similar products and

services create direct competition. Burger King

and McDonald's are direct competitors. So are the

grocery store bakery and the patisserie on the

same street, or the independent plumber and the

local

indirect competition

• Indirect competitors are businesses that offer

slightly different products and services, but target

the same group of customers with the goal of

satisfying the same need. These are sometimes

also known as substitutes.Abdulkadir sugal, Master Management

Engineering

Bribery and extortion in

business Definition:

• Extortion: Offense of illegally obtaining money or other benefit or compelling some action through coercion or menace, specially by a public officer acting in his or her official capacity.

• Bribery: The act of taking or receiving something with the intention of influencing the recipient in some way favorable to the party providing the bribe. Bribery is typically considered illegal and can be punishable by jail time or stiff fines if authorities find out about the bribe.

• Both are types of corruption

Abdulkadir sugal, Master Management

Engineering

Bribery and extortion in

business Bribery and extortion are distinct yet related

corrupt activities that can pose a significant risk to social welfare, legitimate business practices, and political stability

In all or almost all jurisdictions both are illegal.

However, an analysis of the morality of bribery and extortion is complicated by two factors. First, it is often difficult to tell them apart in practice, and second, the moral blameworthiness of the participants in bribery and extortion can differ significantly in different circumstances

Abdulkadir sugal, Master Management

Engineering

Effect of bribery and extortion in

business

Corruption inevitably leads to a diminished

business climate when the public trust is put

at risk, according to Stanford Graduate

School of Business. Corruption can take

many forms that can include graft, bribery,

embezzlement and extortion. Its existence

reduces business credibility and profits when

professionals misuse their positions for

personal gain.

Abdulkadir sugal, Master Management

Engineering

Effect of bribery and extortion in

business

Bribery and extortion have economic and social

effects on people and business around the globe.

It lowers economic growth, discourages

investment, and marginalizes and restricts global

markets.

It erodes support for economic aid and puts a

heavy economic burden on the poor and lowers

the standard of living of the people.

Countries are concerned and are trying to combat

corruption. Many sociologists, political scientists,

and economists know the reasons for corruption,

and many methods have been suggested to

combat it.Abdulkadir sugal, Master Management

Engineering

ICC Recommendations to Governments and

International Organizations on Extortion and

Bribery

Article 1 : Extortion

No one may, directly or indirectly, demand or accept a bribe.

Article 2 : Bribery and "Kickbacks"

a. No enterprise may, directly or indirectly, offer or give a bribe and any demands for such a bribe must be rejected.

b. Enterprises should not (i) kick back any portion of a contract payment to employees of the other contracting party, or (ii) utilise other techniques, such as subcontracts, purchase orders or consulting agreements, to channel payments to government officials, to employees of the other contracting party, their relatives or business associates. Abdulkadir sugal, Master Management

Engineering

summary

Competition of business is

good for real world and as

well as our community

Bribery and extortion

business are corruption as

well as both are illegal

Abdulkadir sugal, Master Management

Engineering

References

https://www.questia.com/library/journal/1P3-

923308881/the-causes-and-consequences-of-

bribery-in-international

http://onlinelibrary.wiley.com/doi/10.1002/9781444

367072.wbiee332/abstract

ICC RULES

Abdulkadir sugal, Master Management

Engineering

Abdulkadir sugal, Master Management

Engineering