BUSNIESS AND INDUSTRIAL PRACTICES: !) COMPETITION IN BUSINESS !!)BRIBERY AND EXTORTION IN BUSINESS

1. Abdulkadir sugal, Master Management
Engineering

2. Introduction of Competition
 Competition means activity in which businesses try
to win in a certain market by defeating others which
are trying to do the same. It can be also defined as the
battle vying for customers’ acceptance
 competition is the rivalry among sellers trying to
achieve such goals as increasing profits, market share,
and sales volume by varying the elements of the
marketing mix: price, product, distribution, and
promotion.
 Competition is generally accepted as a
necessary condition for the coordination of
disparate individuals interests via the market
process.
Abdulkadir sugal, Master Management
Engineering

3. Competition in business
• Companies making similar products compete
in the areas of wholesale price, innovations,
marketing and distribution, among other
areas. These businesses sell their product to
retail outlets and stores that may handle a
range of similar products
• Competition between businesses or stores
consists of trying to get the customer to buy
their product instead of the one offered by the
competitor.
Abdulkadir sugal, Master Management
Engineering

4. Competition in business is a
very important
 Low prices for all: the simplest way for a company
to gain a high market share is to offer a better
price. In a competitive market, prices are pushed
down. Not only is this good for consumers - when
more people can afford to buy products, it
encourages businesses to produce and boosts
the economy in general.
 Better quality: Competition also encourages
businesses to improve the quality of goods and
services they sell – to attract more customers and
expand market share. Quality can mean various
things: products that last longer or work better,
better after-sales or technical support or friendlier
and better service.
Abdulkadir sugal, Master Management
Engineering

5. Competition in business is a
very important
 More choice: In a competitive market,
businesses will try to make their products
different from the rest. This results in greater
choice – so consumers can select the product
that offers the right balance between price
and quality.
 Innovation: To deliver this choice, and
produce better products, businesses need to
be innovative – in their product concepts,
design, production techniques, services etc.
Abdulkadir sugal, Master Management
Engineering

6. Understanding to your
competition
 A clear understanding of your competition is
key to the success of any business. Even if
your product or service fills a unique gap in
the market, there are always other companies
offering something similar, or there are other
ways to satisfy the same customer’s need.
 Competition can be either direct (competing
by selling the same products) or indirect
(competing for the same market). The
intensity of that competition, whether direct or
indirect, will affect the overall potential for
success of your business.Abdulkadir sugal, Master Management
Engineering

7. Abdulkadir sugal, Master Management
Engineering

8. Direct competition & indirect
competition
 Direct competition
 Multiple businesses offering similar products and
services create direct competition. Burger King
and McDonald's are direct competitors. So are the
grocery store bakery and the patisserie on the
same street, or the independent plumber and the
local
 indirect competition
• Indirect competitors are businesses that offer
slightly different products and services, but target
the same group of customers with the goal of
satisfying the same need. These are sometimes
also known as substitutes.Abdulkadir sugal, Master Management
Engineering

9. Bribery and extortion in
business
 Definition:
• Extortion: Offense of illegally obtaining money or
other benefit or compelling
some action through coercion or menace,
specially by a public officer acting in his or her
official capacity.
• Bribery: The act of taking or receiving something
with the intention of influencing the recipient in
some way favorable to
the party providing the bribe. Bribery is typically
considered illegal and can be punishable by jail
time or stiff fines if authorities find out about the
bribe.
• Both are types of corruption
Abdulkadir sugal, Master Management
Engineering

10. Bribery and extortion in
business
 Bribery and extortion are distinct yet related
corrupt activities that can pose a significant
risk to social welfare, legitimate business
practices, and political stability
 In all or almost all jurisdictions both are
illegal.
 However, an analysis of the morality of bribery
and extortion is complicated by two factors.
First, it is often difficult to tell them apart in
practice, and second, the moral
blameworthiness of the participants in bribery
and extortion can differ significantly in
different circumstancesAbdulkadir sugal, Master Management
Engineering

11. Effect of bribery and extortion in
business
 Corruption inevitably leads to a diminished
business climate when the public trust is put
at risk, according to Stanford Graduate
School of Business. Corruption can take
many forms that can include graft, bribery,
embezzlement and extortion. Its existence
reduces business credibility and profits when
professionals misuse their positions for
personal gain.
Abdulkadir sugal, Master Management
Engineering

12. Effect of bribery and extortion in
business
 Bribery and extortion have economic and social
effects on people and business around the globe.
 It lowers economic growth, discourages
investment, and marginalizes and restricts global
markets.
 It erodes support for economic aid and puts a
heavy economic burden on the poor and lowers
the standard of living of the people.
 Countries are concerned and are trying to combat
corruption. Many sociologists, political scientists,
and economists know the reasons for corruption,
and many methods have been suggested to
combat it.Abdulkadir sugal, Master Management
Engineering

13. ICC Recommendations to Governments and
International Organizations on Extortion and
Bribery
 Article 1 : Extortion
 No one may, directly or indirectly, demand or accept a
bribe.
 Article 2 : Bribery and "Kickbacks"
 a. No enterprise may, directly or indirectly, offer or give
a bribe and any demands for such a bribe must be
rejected.
 b. Enterprises should not (i) kick back any portion of a
contract payment to employees of the other
contracting party, or (ii) utilise other techniques, such
as subcontracts, purchase orders or consulting
agreements, to channel payments to government
officials, to employees of the other contracting party,
their relatives or business associates.Abdulkadir sugal, Master Management
Engineering

14. summary
Competition of business is
good for real world and as
well as our community
Bribery and extortion
business are corruption as
well as both are illegal
Abdulkadir sugal, Master Management
Engineering

15. References
 https://www.questia.com/library/journal/1P3-
923308881/the-causes-and-consequences-of-
bribery-in-international
 http://onlinelibrary.wiley.com/doi/10.1002/9781444
367072.wbiee332/abstract
 ICC RULES
Abdulkadir sugal, Master Management
Engineering

16. Abdulkadir sugal, Master Management
Engineering