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Business Competition

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Competition is an important characteristic of an economic order of society. It could be either constructive or destructive. Business organizations compete with one another. By increasing this competition, the government provides incentives for the production of quality and reasonably priced goods as well as helps lessen the inefficient use of resources. Competition is healthy for business enterprises. Competition may exist between organizations in different lines of business as well as between organizations in the same line of business. Usually business firms compete only with other firms of the same kind.

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Business firm also compete when the goods or services of one may be used in place of another. The Philippines is an extremely complex society that defies every generalization. The people’s differences in interest and capabilities should be understood first in the issue of completion in business. Competition is the rivalry among business to sell their goods and services to buyers. In such competition, it is important to know and to do ethnical practices, such as fairness and fair trade relations, services above profit in economic pursuits, and equality as driving force in business development and entrepreneurship.

In fact, competition can be used effectively to increase productivity. Competition in business, may cause a wide array of ethical problems. They could be understood better by examining the prevailing values among the people. In business, it is important to know management’s relations with rivals, especially the problems of competition, so that you can handle the competition wisely. Healthy competition will push business organizations to improve their products and services and to become more efficient, but whenever competition leads to wasteful pursuits social interest suffer.

Likewise, individuals compete to sell their skills and abilities. Thus, competition encourages individual leads to wasteful pursuits social interest suffer. Likewise, individuals compete to sell their skills and abilities. Thus, competition encourages individuals to improve themselves as well as preserve their interest. Business firms compete in different ways. It may compete in the basis of prices; this competition is more aptly called price competition. It may also provide extra services such as offering free delivery, parking space, etc. hey also compete with packaging and labeling, the more creative, more unique and the more attractive the saleable one, in short the label or the packaging should be eye catching. Competition, to be constructive, must be fair. Business competition is an important aspect in an economy for the success of any economic system depends primarily on competition. The government therefore, must guarantee the existence of fair competition in the country. It must regulate competition in business to protect public interest.

When we say public interest, in every rules or guidelines it will not affect the public, the public will be benefited. Presently, business is under fierce attack for many unethical competitions in business. Sharp competition leads to unfair competition. According to Arthur M. Weimer. “Sometimes competition becomes chaotic. For example, “cut throat’’ competition may develop if demand deteriorates and firms find it necessary to sell below cost because of the heavy investments and fixed charges they are carrying.

Sometimes “predatory” competition develops, as in the case of one company deliberately pricing below cost in order to drive its competitor out of business. ’’ Unfair competition enters with extortion, bribery, kickbacks, and the granting of discriminatory allowances, commissions, or brokerage fees. When we say bribery, it is not only unethical practice in business, but it is also a crime punishable by law. It is a desirable that this business practice be stopped. In short, a bribe is a payment made by the intent of influencing directly the conduct of an individual.

For example a bribery can be in a form of an account given for a particular arrangement that favors an individual through a facilitation that is not in consonance with the established procedures or policies of the organization. No personal gifts can be accepted in business. Bribery is committed by an individual who offer a gift or make a promise to any person for the purpose of executing an act which may or may not be accomplished. While, extortion is getting money or anything of substantial value by violence, threats or similar acts.

It exists when individual demands payment of any sort for the execution or non-execution of acts which he is obliged to perform or to omit under the terms of his employment contract. It caused, in some cases, unethical issues to be condemned. It is a serious violation of the fiduciary relationship between the employer and its employee. These business practices are covered by law and ethics. Such competition does not care about what is right. In that case, it abandons good business principles and sacrifices ethical ideals and practices. Unfair competition is essentially directed against general public.

Two of these unlawful means are the imitation of goods and false advertising. While there are many laws on fair trade, as one familiarizes himself with them, one realizes that it is a law honored more in the breach than in the observance. Among the Fair Trade laws in the Philippines are the following: a. Price Tag Law b. Price stabilization Law c. Law on fraudulent advertising, Mislabeling or Misbehaving d. Business name law e. Bulk sales law f. Filipino Retailers Law These are good fair trade but what is discomforting is their implementation.

According to James Madison: “ if men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and the next place obliges it to control itself. ” Nevertheless, individuals may engage in what they believe to be if some moral action for every different ethical reasons. There is nothing wrong in adapting the situation. What is wrong is taking advantage of opportunities at the expense of others.

Thus, the government must protect the people from unfair competition and to guarantee that no individuals will abuse their powers in such situations. Analyzing its problems and ways, a business firm can gain competitive advantage over its rivals. In general, the modern forms of unfair competition fall into two classes; a. Those unfair practices are now actionable at law; such as interference with a competitor’s contract, substitution of merchandise, misrepresentation of goods and methods, transportation rebates, all of which violate modern folk custom; b. hose unfair practices which are not yet forbidden by law, such as price cutting, disparagements of competition, customer’s graft, and attempted boycotts of raw materials. Presently business competition has become keen and demanding. Talent and persistence alone no longer guarantee success. Thus, society must accept the reality that nothing matters for businessmen but their profit. If business is wildered by the shifting demands, it is not alone. There is lack of comprehension on business ethics among many public officials, too.

If government often fails to solve problems that are turned over to it, or comes far short of doing so, this failing may be due more to the nature of the problems than to the nature of government. The government’s inabilities to solve these problems diminish public confidence in it. “ The crisis of public confidence is a reflection of that governmental failure. Certainty, the government is not infallible. So this, shortcoming of the government must be corrected. According to Tom Bradley, “no single law or leader, no simple slogan or dramatic act can, by itself, renew popular trust.

But concerned, continuing effort at every level to explain the complexities of policy, to bring the people into the process of evaluating alternatives, to admit indecision when evidence is inclusive, to promise only what can realistically be expected- that is the only way our democratic system can be revitalized and the public confidence restored. ” Obviously, there have been cases of dishonestly in government. However, the majorities of its employees have been honest and have upheld the trust of the people. While competition has played an important role in business development, it also caused destructive effects on it.

Hence, regulation of business is undertaken by the government to prevent harmful business competition, or protect the interest of the general public. It is very difficult to have good government services because of the inherent problems in deciding who gets help and who doesn’t. Irresponsible competition does affect business and the economy and for this reason government has duty to see to it that the workers and legitimate business and general public, trying to distinguish between them or to deal with them as separate issues not inconsistent with reality.

The relationships of business and the general public cannot exist in a vacuum. Uncertainty in the direction of government’s policies means that the people are being asked to do something without the support they need. The government must establish its priorities. A policy must also be developed that will meet both the personal interest of its people and business’ organizational goals. This is important since another prerequisite for success in business competition is personal relations. Businessmen must cultivate trust and confidence in their people.

It is therefore, important that ethical lines be drawn between personal interests and public duties. Certainly, business and government need each other, and they will satisfy their needs by arrangements. At this point, it is the President of the Republic of the Philippines who sets the moral tone in public office in the country. In this editorial on April 27, 1989, the Manila Bulletin said: “The moral tone of an administration is set by President, since it is the President who influences the actions of subordinate officials and even of the members of congress. on the moral tone of the administration depends its survival, considering the public mode. If the moral standards are kept high it becomes very difficult to fight the administration. ” The concept of trust is essential in doing business. Business must face fierce competition. In doing so, it is first necessary to have knowledge on how people see business ethics and what they do to make it reality. By viewing what it is, it become easier to judge what it may be.

Cite this Business Competition

Business Competition. (2016, Oct 17). Retrieved from https://graduateway.com/business-competition/

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