Competitive Strategies and Government Policies
Name
Institution
Competitive Strategies and Government Policies
Assignment 1
Labor Demand
One of the most important aspects to consider in maintaining a successful industry is staying abreast with the competitive environment that arise in the fuel refineries companies and to embrace changes in labor demand by the management. Declined demand for oil throughout the years has resulted in reduced operational performance, in oil refining industries (Building competitive regions: Strategies and governance, 2005). Therefore, the management has reduced labor demand across all industries in order to maintain a balance between expenses and profits.
Supply
Knowledge on globalization, mergers and new corporations entering the market has an effect on maintenance of profits and pricing. Long lead-time, complexity, limited transportation type, rigid pays or takes procurement, inflexible characteristics, and limited distribution capability are challenges that the oil supply-chain executive face. Moreover, competition has intensified throughout the years hence, reducing the oil refinery’s profits. Thus, the management has resolved to maximize their supplies.
Relations
Oil refineries management has decided to embrace numerous changes regarding its production. This decision bases not only on the health of the workers in the refineries but, also its environmental impact. Regarding the two factors, management has placed more focus on strategies through which it can reduce the negative impacts. Industrial production of the emitted gases such as sulfuric acid, ammonia and chlorine are some of the ways to reduce pollution. As a result, the industry would experience an increase in their net profit.
Unions
Over the years, workers have struggled to have unions in their respective companies. They constantly argue about unemployment, poor working conditions and low wages (Weir, 2013). In effect, the management has allowed formation of workers unions, which in turn, oil refineries have benefited through these because they have acquired a channel through which they can effectively communicate with the workers on certain issues such as unemployment.
Rules and Regulations
Every industry has rules and regulations that govern it. Moreover, there are government rules and regulations set by the Environmental Pollution Agency (EPA) with which these industries have to abide. For instance, the industries will produce hazardous waste into the environment. This invokes the Clean Air Act requirement and when it is disposed in water, it invokes the Clean Water Act requirements (United States, 2006). Therefore, for these industries to run efficiently, they must abide by the rules and regulations made by government. In effect, the industries stand a chance to continue running with their businesses without interruption by the government.
Assignment 2: Recommendation
Entry into an oligopoly market constitution is one of the significance barriers that make it hard for oil refineries to actualize profits. In this industry, there should be reduced labor because of the reduced demand for oil, heighten supply to consumers and allow formation of unions among its employees. Furthermore, they should abide by the rules and regulations that put in place by the government and focus on how to increase its relations.
Assignment 3: Learning Team Reflection
According to this week’s topics, International Trade Policy, Comparative Advantage and Outsourcing were some of the topics that made me feel comfortable. This is because the topics were easy to understand and comprehend. Moreover, the Distribution of Income, Microecononomic Policy, and Economic Reasoning and beyond was easy in terms of handling them in class. The topics place focus on real world examples. Hence understanding such topics were not a hard task. However, the second topic on Real-World Competition and Technology was not an easy one. The topic entails the X-inefficiency and monopolies and their goals. Understanding the goals of real world firms and their problems was a bit challenging than expected.
Fortunately,
the topics discussed in this week relate to economics. This is because most of
the topics involved centralize the ideology that individuals, organizations and
household’s behavior in managing resources that have unconventional uses, is to
attain desired goals. Additionally, these topics have an added advantage in
that they have taken the study of economics to a higher notch by involving the real
world sector. At this point, the student is able to understand how to apply
economics to the outside world through real life applications. For instance, Steve
Jobs was video taped stating that the Microsoft Company has no taste (Colander,
2010). This is an example of real world competition that is applicable in
economics.
References:
Colander, D. C. (2010). Economics. Boston: McGraw-Hill/Irwin.
Building competitive regions: Strategies and governance. (2005). Paris: OECD.
In Weir, R. E. (2013). Workers in America: A historical encyclopedia.
United States. (2006). Impact of environmental regulations on oil refining: Hearing before the Committee on Environment and Public Works, United States Senate, One Hundred Eighth Congress, second session, on the environmental regulatory framework affecting oil refining and gasoline policy, May 12, 2004. Washington: U.S. G.P.O.