StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The behaviour of organisations and the market environment - Essay Example

Cite this document
Summary
The competitive environment of the company is understood by evaluation the five forces acting on the business process of the firm. These five forces if not evaluate by the company can affect the company’s performance in the industry. In order to evaluate the different forces of the business environment Porter’s five forces is a very essential tool for the companies. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95% of users find it useful
The behaviour of organisations and the market environment
Read Text Preview

Extract of sample "The behaviour of organisations and the market environment"

?Business Environment Table of Contents Table of Contents 2 Task 3– The behaviour of organisations and the market environment 3 Identify and critically evaluate the effectives of the barriers to new entrants wanting to compete in the industry? 3 Define the meaning of perfect competition. To what extent does your chosen industry’s structure fit with your definition? 5 Identify three regulatory mechanisms that are in force. How is compliance monitored? 6 Reference 8 Bibliography 9 Task 3– The behaviour of organisations and the market environment Identify and critically evaluate the effectives of the barriers to new entrants wanting to compete in the industry? The competitive environment of the company is understood by evaluation the five forces acting on the business process of the firm. These five forces if not evaluate by the company can affect the company’s performance in the industry. In order to evaluate the different forces of the business environment Porter’s five forces is a very essential tool for the companies. Understanding of the situation will help the company to cope the different dimensions which can act as threat in long run for the firm and it will also be able to continue its profitable position in the competitive environment (Society for Human Resource Management, U.S. 2006, p. 38). The five forces which porter mentioned are Threats from new entrants, Suppliers bargaining power, Bargaining power of customer, Threats from substitutes and lastly the threats from direct rivalry in the industry (Roy, 2011, p. 26). Of the five forces one of the major force which acts as an important aspect for the firm to look after is the threat from the new entrants. Figure 1: Porters Five Force model (Source: Hill & Jones, 2009, p. 43) Sony being one of the leaders in the music, movies, gaming and electronic industry is competing with many players in the electronic market. Several players like Samsung, hp, LG are already in a steady position in the market with around same market share. The industry of electronics grew at a very fast pace over the year and with the emergence of many new companies from South Korea like Samsung and LG many existing players of the market like Sony are suffering to maintain their market share. Samsung maintained a huge profit of $3 billion profit while Sony suffered in earning during the same period (LedTV, 2011). To maintain the market share the company need to develop a strong base to compete with the global market (Market Research News, 2011). Though these players are entering into the market but threats from new entrants are relatively low in electronics industry as compared to other industry. The capital requirement for the entry is huge for the new players which is not possible for many to enter the market. The switching cost of the new entrants is also high in electronic industry. For new players it’s difficult for them to know the new technologies and invest in research and development process. The diversified product line from the existing players like Sony is a great advantage for them. Economies of scale are another issue which keeps the competition low from the new players. Define the meaning of perfect competition. To what extent does your chosen industry’s structure fit with your definition? In a perfect competition scenario all the players of the market are approximately equally sharing the market share. None of the companies in the market are large enough to set the price for the industry. Most of the firms in the same industry produce same kind of products and follow the expected price for the product which other players are using. In a perfect competition market no single company leads the race for the industry. Everyone in the market possesses same kind of small market share. The customers in a perfect competition market are aware of the products from all the players and they have an expected price of the different products from the companies the new entrants can enter with ease in this market situation and they also don’t face much barriers to exit from the race. No advertisement of the products and promotional activities are required for players as it will only increase the cost for the firm and decrease profit for the firm (Peoi, 2002). Sony being the leader in the electronic industry has a great competition with many existing players of the market like Samsung, LG, and Philips, who occupies the major share of the market. In electronics market the major market share holders like the competitors of Sony maintain a perfect competitive market. But on the other hand many emerging players of the electronic and other diversified products produced by Sony follow the price strategy of the leaders of the industry. Many Chinese and Japan electronic companies follow the benchmark created by the leaders like Sony, Samsung etc and place their products at lower price in the market (SME, 2009). In perfect competition market the products are homogeneous whereas the product line of Sony consists of diversified products from music, movies, electronics, game players etc. Identify three regulatory mechanisms that are in force. How is compliance monitored? Sony’s market environment is mainly operated by three regulatory mechanisms. These regulatory mechanisms can be referred as competitive regulators, consumer pressure groups regulators and industry standard bodies. Government owned agencies are the competitive regulators who come across after the different activities and policies regarding to competitive environment. Countries without regulation structure face much more competition than the countries with regulatory bodies (Kenny, 2005, p. 9). To control the laws and policies of the country there are many regulatory bodies like these who take a close look on the regulation of the economy of the country. Various functions performed by the competitive regulators through competitive law and policies can be mentioned as Internationalization, Private law enforcement and Criminalization and Due process and judicial supervision along with competition advocacy (Ascioglu, n.d. p. 4). Consumer group monitors are another regulatory body who operates by putting pressure on the suppliers and the manufacturers in the market for different products and services. The price is controlled by the groups with the power of pressurizing the market players. The third regulatory mechanisms that are in force in the market are the industry standard bodies. These organizations are responsible in setting the price for different products and services offered in different sectors of the market. All the operators in the market abide by the standard set by these organizations. The main focus is given towards standardization of price in the market. Sony has its own monitoring program to ensure global handing of Code of Conduct and policies of the firm. The monitoring systems help the company to address issue and act according to the need and suggest instructions. Various step of the monitoring system includes Crisis Management System, Anti-Bribery Program, and Exclusion of antisocial forces and Information security with personal information management. These step by step approaches help the company to implement strategies and take a closer look at the different activities of the firm (Sony, 2011). Reference Society for Human Resource Management, U.S, (2006), Essentials of strategy. Harvard Business Press. Roy, D. (2011). Strategic Foresight and Porter’s Five Forces: Towards a Synthesis. GRIN Verlag. Hill, C., Jones, G. (2009). Strategic Management Theory: An Integrated Approach. Cengage Learning. Kenny, C. (2005). Reforming the posts: abandoning the monopoly-supported postal universal service obligation in developing countries. World Bank Publications. Market Research News. (2011). The Top 10 Consumer Electronics Manufacturers. [Online]. Available at: http://www.salisonline.org/market-research/the-top-10-consumer-electronics-manufacturers/. [Accessed on July 28th 2011]. Peoi. (2002). CHAPTER 4:PERFECT COMPETITION. [Online]. Available at: http://www.peoi.org/Courses/mic/mic4.html. [Accessed on: July 26th 2011]. Sony. (2011). Corporate Social Responsibility. [Online]. Available at: http://www.sony.net/SonyInfo/csr/compliance/index.html#block5. [Accessed on: July 26th 2011]. SME. (2009). Sony Product Lines, Lagging Competitors, Seen As "Critical Flaw”. [Online]. Available at: http://www.sme030.org/index.php?option=com_content&view=article&id=149:sony-product-lines-lagging-competitors-seen-as-qcritical-flawq&catid=46:sme-briefs&Itemid=27. [Accessed on: July 26th 2011]. LedTV. (2011). Sony Struggles To Maintain Its Dominance. [Online]. Available at: http://www.ledtv.org/node/29. [Accessed on: July 26th 2011]. Bibliography Chang, S. (2011). Sony Vs Samsung: The Inside Story of the Electronics Giants' Battle For Global Supremacy. John Wiley and Sons. Gia, K. (2009). Marketing Strategy of Sony for Portable Audio Device Business. GRIN Verlag. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The behaviour of organisations and the market environment Essay”, n.d.)
Retrieved de https://studentshare.org/business/1390555-business-environment
(The Behaviour of Organisations and the Market Environment Essay)
https://studentshare.org/business/1390555-business-environment.
“The Behaviour of Organisations and the Market Environment Essay”, n.d. https://studentshare.org/business/1390555-business-environment.
  • Cited: 0 times

CHECK THESE SAMPLES OF The behaviour of organisations and the market environment

Understand the Behaviour of Organisations in their Market Environment

Understand the behaviour of organisations in their Market Environment This has enhances shopping for consumers making it even more convenient by providing all products under the same roof.... This has a risk of causing loss of the market share (Finne & Sivonen, 2009, 298).... the market is characterized with substitutes where increase in price of one commodity means a change to consumption of the existing substitute.... However, with increased competition in the UK market, retaining customers would be a crucial concern for Tesco....
6 Pages (1500 words) Essay

Understanding the Behaviour of Organisations in their Market Environment

It is often characterised in terms of the strength of buyers and sellers, level of collusion, form of competition, degree of product differentiation, and also the ease of exit and entry into the market.... Perfect Competition: Perfect competition is a situation when numerous firms are competing in the market (Machovec, 2002).... Figure 1 – Market Structure PESTLE and Cultural environment The external business environment in which an organisation operates plays a significant role....
4 Pages (1000 words) Essay

Organisational culture and competitive advantage: is there a link Discuss

hellip; This follows a widely raging belief that organisational culture has an active role in shaping the behaviour of all employees in an organisation, aligning all behaviours towards a common goal of realising the objectives of the company.... It will be shown that organisational culture is a versatile tool to achieve competitiveness, and that firms with unique organisational cultures will always set performance benchmarks in the market.... Organisational Culture and Competitive Advantage College Date Organisational Culture and Competitive Advantage In the recent past, organisations have been drafting varying cultural models that link the organisation's mission, vision, and objectives to its overall approach in its daily operations....
12 Pages (3000 words) Essay

Definition of Business Organization

A business organization has a boundary, which separates it from its external environment.... This strategy makes a business organization establish a healthy environment and makes the organization remain strong and successful.... The aim of this coursework is to spot the purposes of business organization, analyze the criterion used by different types of business organizations to meet the demand of stakeholders, and explain strategies and responsibilities of business organizations, which they use to meet their goals....
12 Pages (3000 words) Coursework

International Organisational Behaviour

In this context this paper presents a broad idea on the subject of ‘international organizational behaviour' and its effects on the overall organizational performance detailing in particular the applicability of universalistic theories of organizational behaviour in the era of a multinational business environment.... Scholarly writers concur that the organizational culture is determined even from the time of inception and is dependent on the organizational characters like the competitive environment and customer requirements....
13 Pages (3250 words) Essay

Organizations and Behaviour - Importance of Organisational Structure and Culture

The crucial requirements are changes in the corporation's culture, procedures, policies, infrastructure, Information Technology (IT) and management styles so that they can meet the demands of the current market requirements (Kouzes & Posner, 2012).... With the advent of time, the organisations have undergone drastic changes especially their structures and cultures have been improvised to comply with the requirements of the business world.... In order to support the creation of innovative and creative culture, BT has made sure that it provides its employees with sufficient autonomy to make decisions, promotes team working atmosphere so that everyone is willing to make meaningful contribution, encourages risk taking behaviour so that there are new ideas and innovative solutions are implemented and the employees are involved in every vital business decision so that they feel valued and appreciated....
11 Pages (2750 words) Essay

Mary Parker Folletts strategy as practice and leadership

This management philosopher, quite ahead of her time, saw organisations as complex organisms that required interaction between disparate manager and employee personalities and differing psychological tendencies in order to maximise employee productivity and commitment.... This essay performs a critical appraisal of Mary Parker Follett's assessment of the organisation, in order to outperform competition focusing specifically on the concepts of organisational complexity, the structure and purpose of complex adaptive systems, the impact of Follett's viewpoint on leadership obligations and compares this to the practice perspective in real-world organisations....
12 Pages (3000 words) Essay

Emotional Labour: A Significant Interpersonal Stressor

Organisational behaviour aids in understanding and analysing the influence of behaviour of employees in an organisation.... The study of organizational behaviour can be segregated… o three stages such as individual, workforce and workplace environment.... In addition, the emerging concept of expatriation has also changed the internal organisational environment to a large extent.... Accordingly, In the present scenario, globalisation, expatriation and advent of technologies have changed business operations and market conditions to a large extent....
6 Pages (1500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us