Red Driving Business Case Study
AC1.3: Explain the responsibilities of an organization and strategies employed to meet them
Social responsibility is one of the Red Driving School’s obligations that has set-up are geared towards ensuring the operations of the business are friendly to both the community and the environment. In other words, the company’s corporate responsibility focuses on improving its services both indoor and outdoor; in an effort to increase its vision and gain competitive advantage.
As a result, Red Driving School maintains standards of its business ethics which are important to the expectation of the stakeholders. The company follows regulations which include protection of the stakeholders’ interest in regards to environment, social, economical and financial …show more content…
In case of driving school, the pricing will be same for all the UK Driving School even if they lower prices, the other sellers will match it as well and will get everyone in a loss, and therefore, they can’t increase their profit.
Monopoly
Monopoly is the opposite of Perfect Competition. An Organization that does not have to face competition is said to have a monopoly in the market. It may have little outside pressure put on it to be competitive. The monopolist has control over the price, quantity and consumer choice.
In case of Driving school, monopoly structure can be very effective and very profitable in a Driving School or in any industry, as there is no competition and they can change the pricing as they want. To make more profit they can also apply a price discrimination factor.
Monopolistic …show more content…
Monopolistic Competition can be good for Driving Schools, like they can advertise their brand and say that we’re different than others, for example, friendly staff, clean cars and etc. Due to advertising, they can make considerable profit and can have little market power.
Oligopoly
Oligopoly happens when there are only a few large suppliers, whose decision making affect each business.
Oligopoly, strongly believes in heavy advertising with non-price competition, the driving school happens to advertise heavily with the same price as others however due to advertising they have a great deal of market power. They can make abnormal profits however it depends on their competition, if few back down in advertising, which will lessen their market power and won’t be competitive like before and will suffer.
Duopoly
A duopoly is a situation in which two companies producing a similar type of product split the market share or have control over the
Social responsibility is one of the Red Driving School’s obligations that has set-up are geared towards ensuring the operations of the business are friendly to both the community and the environment. In other words, the company’s corporate responsibility focuses on improving its services both indoor and outdoor; in an effort to increase its vision and gain competitive advantage.
As a result, Red Driving School maintains standards of its business ethics which are important to the expectation of the stakeholders. The company follows regulations which include protection of the stakeholders’ interest in regards to environment, social, economical and financial …show more content…
In case of driving school, the pricing will be same for all the UK Driving School even if they lower prices, the other sellers will match it as well and will get everyone in a loss, and therefore, they can’t increase their profit.
Monopoly
Monopoly is the opposite of Perfect Competition. An Organization that does not have to face competition is said to have a monopoly in the market. It may have little outside pressure put on it to be competitive. The monopolist has control over the price, quantity and consumer choice.
In case of Driving school, monopoly structure can be very effective and very profitable in a Driving School or in any industry, as there is no competition and they can change the pricing as they want. To make more profit they can also apply a price discrimination factor.
Monopolistic …show more content…
Monopolistic Competition can be good for Driving Schools, like they can advertise their brand and say that we’re different than others, for example, friendly staff, clean cars and etc. Due to advertising, they can make considerable profit and can have little market power.
Oligopoly
Oligopoly happens when there are only a few large suppliers, whose decision making affect each business.
Oligopoly, strongly believes in heavy advertising with non-price competition, the driving school happens to advertise heavily with the same price as others however due to advertising they have a great deal of market power. They can make abnormal profits however it depends on their competition, if few back down in advertising, which will lessen their market power and won’t be competitive like before and will suffer.
Duopoly
A duopoly is a situation in which two companies producing a similar type of product split the market share or have control over the