The Business World Is More Challenging

A command economy or planned economy is an economic system in which the government or authority has control over the production and pricing of good and services. The authority selects which items and services to produce, the creation and distribution process, and the costs of goods and services. Additionally, the government has control of all lands, capital and different resources. The government or authority decides essentially the most socially effective items to provide. They also create laws and regulations that control state-owned and privately owned businesses. The choice of goods available to customers is higher in the market economy system than in the command economy system. There are 2 types of Command Economy, a strong and a Moderate

This type of economy works in the private sector of business ie. Individual firms. A command economy is an entirely different system in which a central government decides how to answer the three central economic questions. The government would decide what is to be produced, how it is to be priced etc.

Throughout the world, free-market economy functions are much more popular as it is the fundamental of capitalism. As the majority of the world economies are mixed economy, the features of command economy cannot be ignored.

The main functional areas of a business are marketing, human resource, finance, information systems and production. All these interact with each other in different ways but all contribute to effective management. Management would not be completely effective if one of the above areas are missing. They are all needed in different ways to make sure that the business reaches objectives, achieves effectiveness and efficiency and while doing this trying to get a balance in which they can satisfy different stakeholders.

In a command economy, the government owns all aspects of the community. This means the government owns all factors of production, such as capital, land, labor, and entrepreneurship. Individuals do not own businesses; the government owns all major industries in the country. Individuals typically do not have a say in owning such resources as well. In a market economy, individuals own businesses and major corporations. The government typically does not have a say in owning businesses and cannot take over a business at their leisure.

In this assessment I am going to explain to describe about my business changes which may include people, process and structure. It wills benefits of the changes to the organisation and to minimise the loss. First of all I will present my business introduction means what type of business I exist.

This paper will discuss the business chosen for the assignment. A mission statement will be developed, setting the business apart from others in the same or similar market. The vision statement will also made, discussing the direction the business wants to take in the future. Other topics such as, principles or values will be discussed. Concluding the paper will analyze the mission and vision statement, and values in guiding the business in a strategic direction. Followed by an evaluation of customers need in giving the competitive advantages.

The command economy is government directed. The market forces have very little say in such an economy. There is no private property. On the other hand, a command economy aims at using all available resources for developing either

Command economic systems can easily change direction using allocation, answers the economic questions, and makes running a business very simple. The straightforward nature of a command economic system is what makes it the best for today’s society. Although it is looked down by majority of society due to how strict it is, it does make a lot of impact and gives a lot of structure to the

Command economies and market economies are two different economies and both effect a workers life and I will explain how they both effect a workers life. The first example I will start with is how command economy affects a worker's life and the my first example of how a worker is affectebyes he or she can not pick the job they want to work at and that has lots of effects on a workers life. One example would be that a worker does not get to pick there job so there for he does not get to pick the salery they get and when they get a low salery his or her family can become very poor. So the worker can suffer there whole life because the government picks what job you have. On the other hand market ecomony could affect a workers life too. One example

The purpose of business is commonly perceived negatively by the general public. Most people believe that businesses are started solely for the purpose of making money for its investors. However, according to Mackey (2013), “business has the potential for a higher purpose; to improve our lives and create sustainable value for all stakeholders of a business”. During the interview Mackey (2013) says that “business creates the goods and services that make our lives better”. At any rate, most people still view business as a necessary evil until more businesses adopt the conscious capitalism philosophy.

In the past, whenever the central planners miscalculated how much product was needed from each industry, constant shortages and surpluses occurred, consistent with the novel’s description with respect to shoes and razors. And as long as the managers who met their miscalculated goals were rewarded, they had no incentive to adjust production according to the shortage or surplus. Because within a command system there are no fluctuations in prices and profitability to indicate that one profit or another is in need, many products were inefficiently overproduced and underproduced. As in the Soviet Union and China (before its market reforms), command systems do not reward innovation or enterprise; the only way to be on top was to participate in the political hierarchy. As in the novel, moving up the hierarchy means better housing, better food, and the freedom to turn off the telescreen. However, business success based solely on political maneuvering is not conducive to technological advance, a key element of a stable economy and therefore powerful society (since technological advance=more efficient and cheaper production methods=less cost for production=wealthier system=money=power). In essence, command systems are doomed to fail because their economies are; we already see evidence Oceania’s impending downfall in the book with descriptions of the government’s failure to meet the public’s needs. Without a stable, efficient, and constantly

In a market economy, consumers decide what is produced, producers decide where and how to produce, and consumers decide who gets the products. Also, all productive resources are privately owned and operated. In a traditional economy all resources come from self labor and the government owns all resources. In a command economy, the government plans ways to allocate resources in key industries. Command economy’s government owns all basic resources and anything else is privately owned.

The third point is understanding why your company exists in the parameters of meeting the needs from customers, or from Montgomery’s perspective—having purpose. When it comes to surviving in the business environment, it is important to structure the most essential strengths of your company has and exploit that differentiation to capture a greater market capitalization.

1. The most significant challenge to business success you see in this rapidly changing global economy;