ECO 365 Week 5 Final Project - Competitive Strategies and Government Policies

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Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following points.
Write 1,400 – 1,750-word paper in which you describe how each of the following are or potentially will affect your industry or one with which you are familiar:
• New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiar–horizontal, vertical, or conglomerate–and explain why you made that choice.

• Current and expected government policies and regulations, including taxes and regulations in place to address issues related to externalities

• Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry

Recommend how the industry you chose may respond to each of the previous points.

Format your paper consistent with APA guidelines.

Preview:
Competitive Strategies in the Power Industry

The power industry has new companies attempting entering the market each year. Mergers, globalization, and pricing structures affect the sustainability of profits. A conglomerate could be formed because different power sources could be combined under one company. Current and expected government policies and regulations will alter how the power companies may merge. These include taxes and regulations put in place to address issues that may arise from a merger. Global competition can also affect profits among different power industries. Companies must consider whether or not merging will create enough profits to justify partnering with another company. Making the correct decision on merging will determine the long term success of any company.
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