Introduction
Organizations working environment and competition are fundamental to the success of any business organization. These factors are instrumental in determining the market structure plus its forces which are very important in any result-oriented organization. This paper aims at bringing out GNLD as an organization that is characteristic of a proper business environment and competitive in its market.
Recognizable objectives
GNLD aims at empowering people to take responsibility for their Health, Self Improvement, and Financial Independence.
To ensure that all product from the organization meets the highest level possible and meets the needs of the people throughout the world.
To allow all people regardless of their experience or training to own their business.
In the area of Health, we empower people with knowledge and scientifically proven products to maximize their potential for lifelong health.
In the area of Self Improvement, we empower people with training, person-to-person support, and simple, time-proven tools that allow you to succeed by being yourself.
In the area of Financial Independence, we empower people by providing the keys to controlling their income and quality of life.
For the environment, GNLD is committed to the production of low-dose and low burden biodegradable products that are gentle to the environment.
GNLD aims at supporting community programs that bring joy to the less fortunate people in society.
Stakeholders in the organization
The following are the main stakeholders in the business.
- Scientists
- The distributors
- The consumers
The scientists
The organization produces products that work backed by scientific research carried out by a team of scientists. The ability of the products to meet the needs of the consumers is based on intensive research done by scientists. The quality of the products produced is dependent on the efforts of the scientists.GNLD has a team of scientists who work towards quality products that work and meet the needs of consumers all over the world.
The Distributors
These are the product movers in this business. They are the ones who go out and reach for the consumers to convince and train them on how the products can transform their lives.
Without the work of the distributors, the products cannot reach the consumers, especially with the adopted network marketing strategy.
The consumers
These are the major stakeholders in the business. All the products are designed to be utilized by consumers all over the world.
If consumers are not using the products then the organization will not be profitable.
All the stakeholders play their roles effectively to ensure that the organization achieves its overall objectives which include profitability. (GNLD,2007)
Responsibilities for the organization
The organization has a responsibility to provide an equal opportunity for all regardless of race, gender, color religion culture, or level of training. Through its marketing strategy, the company is set out to give everybody an equal opportunity to compete and achieve great heights. Earnings are unlimited and the entry-level is the same for all the new members joining the organization.
The organization also has the responsibility of maintaining high-quality products that adequately address the needs of the consumers. This has been achieved by investing adequately in the team of scientists who research the products thus ensuring that quality is assured.
GNLD is responsible for producing products that work and create customers who can use the products for a lifetime. For this to be accomplished focus is on the dreams and goals of others thus they derive satisfaction by seeing other people achieve their goals and lifetime dreams.
The company also has the responsibility to carry out awareness or education concerning the products. The company organizes training sessions whereby the distributors are trained well for free on how the products work(GNLD,2007).
Economic environment
Economic environment refers to an interplay of factors that are crucial in determining the market of products produced by the organization.
The environment in which the business operates is greatly affected by the policies of the various nations in which the organization has established branches. Good policies by the government can help boost the business while bad policies will ruin the business. Policies that touch on trade relations and foreign policy affect this business so much that they determine the survival of the organization in that particular region.
The policy of structural reconstruction and economic stabilization is directed at reducing the state interference into the economy to make it freer and “sensitive” to the signals of the market. To this end, state investments in social infrastructure and expenditures on social purposes are reduced, and programs of trade liberalization and privatization of the state sector are carried out. These policies are most negatively affecting the poor strata of the population, where women and children are prevalent.
Social expenditures on the reproduction of the labor force are moved to the sphere of housework, where they become invisible for society and present an additional burden for women.
This affects the organization especially when women and children cannot afford the products.
Government policy on taxation also affects the organization.
If the governments are overtaxing the foreign products and services then the environment will not conducive for good business practice.
Local or regional development issues will have an impact on the organization.
This is so because the consumers who are the target groups of the organization are situated in the local areas so matters that affect them in terms of development will be felt by the organization which markets its products to them.
The development of infrastructure is very important for the movement of goods and services from one part to another. When infrastructure in terms of roads and other communication networks are developed there will be increased trade therefore more sales will be made.
Development issues that relate to an increase in per capita income are critical in determining the level of success of the business in that particular area. This is because with such then it will mean that the purchasing power of the people will be on the rise and therefore the organization is likely to achieve a higher profit margin due to increased sales.
Under development is not a very desirable regional feature for the organization as it hinders business expansion because of poverty levels becoming an obstacle towards achieving the set targets. Underdevelopment is characterized by low purchasing power and the products and services move at a snail’s pace. This does not go well with the business mission and vision. ( Johansson, 2001)
Regional development issues regarding trade between neighboring countries benefit the organization. With countries having free trade relations it is easy to move products from one country to another. This makes product movement very easy and high sales are attained.
The main market factors
The market structure
The market structure is a very important aspect of any business organization.
It determines the number of products that are to be found in the market for both the buyers and sellers.
The structure influences the business in terms of pricing of products, supply, efficiency, and competition.
The market structure of this organization has been determined by a number of some of which include the nature of products and the control oversupply and price of commodities
The best market structure for this organization is a perfect competition market structure whereby there is free entry and exit from the manufacturing industry.
The products have a large number of buyers and sellers so there is no instance when one buyer or seller influences the price. Sellers have no other option but to take the price as they are the price takers.
It is the responsibility of the company to ensure that both buyers and sellers are provided with the required adequate information concerning the products to facilitate the smooth running of the business.
With this type of market structure, the organization operates at a high competition rate while resources are efficiently used hence making the strategy different from the other structures.
With this type of strategy, the organization makes a profit, and the consumer benefits as the operations are at maximum efficiency.
GNLD uses network marketing in its market structure. This system involves the parent company marketing the products directly to the consumers by utilizing referrals by relationships and direct sales. Market structure is a very essential component of a successful business organization.
Response to changes in the market forces
Demand and supply are the two market forces that make market economies function accordingly. These forces determine the number of products produced by the organization and how much of them are sold and at what price.
A market refers to a group of buyers and sellers of the organization’s products. The buyers in this case as a group influence the demand for the product, and the sellers as a group decide on the supply of the product on the market.
Markets may take many forms. A bloodthirsty market is a market in which we have so many buyers and many sellers so that each one has an insignificant impact on the market price.
A seller has modest reason to charge less than the market price, and if he charges more, buyers will make their purchases elsewhere as they wish.
Perfectly competitive markets are distinct by ;
- the goods being offered for sale are all the same, and
- the buyers and sellers are so many that no single buyer or seller can influence the market price.
Because buyers and sellers in absolutely competitive markets must acknowledge the price the market determines, they are said to be price takers.
Demand factors
Price
Price affects demand because the quantity demanded falls as the price rises and rises as the price falls, we can point out that the quantity demanded is negatively related to the price. If the organization increases the price of products by a certain percentage then the number of orders for that particular product will be reduced. but if the company allows for a discount on a given product the number of orders for that particular product will consequently increase
The law of demand: Other things the same, when the price of a good increases, the quantity demanded of the good declines.
When a fall in the price of one good reduces the demand for another good, the two goods are called substitutes. Substitutes are often pairs of goods that are used in place of each other, such as hot dogs and hamburgers. Substitutes from other competing companies like Tiens will also affect the demand for GNLD products
When a fall in the price of one good raises the demand for another good, the two goods are called complements. Complements are often pairs of goods that are used together, such as the nutritional products like Nutrishake and protein powder.
Supply factors
Price
Price influences the market because the quantity supplied rises as the price rises and falls as the price falls, such that the amount supplied is positively interrelated to the price of the product. The supply of GNLD products would tend to rise if there is a good price that can translate into good profit for the organization.
But the manufacturers would tend to lower the production if the prices of products have been reduced to minimize losses.
This relationship between price and quantity supplied is called the law of supply: Other things identical, when the price of a good is on the increase, the quantity supplied of the good also increases.
Input Prices
When the price of one or more of these inputs rises, producing omega 3 is less
profitable and the company supplies these products. If input prices rise substantially, the organization might shut and supply no product at all. Thus, it follows that the supply of a good is negatively associated with the price of the inputs used.
Ways in which the organization can become competitive in its market.
The first thing that should be undertaken before becoming competitive in its market is to identify the main competitors. The top three to five direct competitors have to be identified. By direct competitors, I mean those organizations that are similar in scope with GNLD and are offering the same program to customers or are found within the same geographical area.
The next most important thing is to, compare your organization to each of these competitors in terms of the programs you offer and your competitive position vis-à-vis the four key resources — customers, funding, human resources, and publicity or media attention.
There is also a need for the organization to fully understand the market. For the market to be understood the organization needs to keep track of the trends in the market. The trends a very critical as they affect the size of the market and the impact they have to consumer base. Trends to be considered include demographics, political environment, economy and funding amongst others.
European Union policies
The policies formulated by the European Union affect the market of the products produced by this company.
The European Union policy on foreign trade is largely centralized and focuses on multilateral liberation and regional integration. It protects the rights of business organization and also opens up trade for all member countries.
Centralization of decision making by the EU is very important to organizations because it ensures that internal markets are functioning. This ensures smooth running of business activities for the organization at the local or regional level.
The policy of EU on internal integration has to a great extent improved multilateral liberation keeping in mind that GNLD is a multilevel business , this policy is very critical in the success of the organization. Once there is regional integration then movement of products and the various currencies becomes a smooth process.
Policy on trade liberations is also essential for this organization as it has led to growth of business in countries where growth was stagnating.( Pahre, 1995)
The uk joining currency
Advantages
- The business will sell to so many economies and therefore it will enhance the economy of scale
- Secondly the buyers will have a wider range of distributors of the company’s products
- In some countries currencies act as barriers to trade thus a single currency will help to overcome these barriers
Disadvantages
Joining the currency will translate into high risk premium on interest rates. This will impact negatively on the company’s trade.
The costs of operating business under a single currency system are high and can lead to reduction in the revenue for the business. The profits would be reduced as a result of these high operational costs.( Landau 1995 )
The expansion of the European Union
The expansion of the European Union has an impact on the market competitive ability of this organization.
The organization will be affected in terms of expanding trade within the member countries therefore the organization will experience increased trade consequently.
The trade volumes are likely to increase as the European union expands.
Viner (1950) had shown that not all such trade within a trading bloc is welfare improving, so this does not itself assure that the EU had increased incomes. But the sense of this literature was also that trade creation had sufficiently exceeded trade diversion so that European integration had been beneficial, and most would agree that it had raised real incomes even if the increase had not been measured
Dominance of agriculture and public sector protects the interest of the manufacturing sector. Therefore the organization will not be affected much.
Within the Euro zone there is likely to be reduced consumer prices due to cheaper input flowing inside the affected countries. This will affect the supply and demand for the organizations products. This will also be a consequent of inflation in the member states.
Basing my argument on the trade theory, eliminating stumbling blocks to trade typically increases specialty in production according to each region’s comparative advantage, and as a result trade is generated. From a wider perspective, trade liberalization leads to bigger consumption as low cost foreign manufacture replaces the more costly domestic production.
However, even though trade liberalization can bring global or regional gains, an individual country could suffer negatively, due to unfavorable income distribution effects arising from tariff revenue reorganization. As the trade liberalization means eliminating barriers to selected countries only, as occurs with the European extension, then one can imagine that trade diversion effects may, to some extent, make up for the trade creation effects.
This situation is likely to happen as member countries displace tariff-ridden imports from non-member regions with tariff-free imports from other members, even though the replacing imports may be more classy to produce. (Vanhoudt 1999)
In conclusion it is vital to point out that GNLD has held a long history of success and this can be attributed to its good organization and competitive advantage which have been used adequately to propel the organization to even greater heights of success.
Reference
Johansson, Helena 2001 “Regional Integration and Productivity Growth: The Case of EU,” Journal of Economic Integration, pp. 1-20.
Landau, Daniel 1995 “The Contribution of the European Common Market to the Growth of Its Member Countries: An Empirical Test,” Weltwirtschaftliches Archiv 13(4), pp. 774-782.
Pahre, Robert. 1995. “Wider and Deeper: The Links Between Expansion and Integratio in the European Union.” in Towards a New Europe: Stops and Starts in Regional.
Integration, ed. by Gerald Schneider, Patricia A. Weitsman, and Thomas Bernauer. Wesport: Praeger. Vanhoudt, Patrick 1999 “Did the European Unification Induce Economic Growth? In Search of Scale Effects and Persistent Changes,” Weltwirtschaftliches Archiv 135(2), pp. 193-220.
Viner, Jacob 1950 The Customs Union Issue, New York: Carnegie Endowment for International Peace. GNLD. Web.