BUS 101 1st Edition Lecture 21Outline of Previous Lecture- Section 20: Business Plan Aspects and outlineo Executive summaryo Table of contentso Business outlineo Mission and values statementso Stakeholder theoryo Six functionso Corporate social responsibilityo Conclusion Outline of Current Lecture - Section 21: Market as a Stakeholder Marketo Non-Human Origino Government Interfacing – 1887o Sherman Anti-Trust act – 1890o Consumer Protection Acts - 1914- Section 21: Market as a Stakeholder Marketo Non-human origin Have to have the market for business to exist- Market is a creation of society and is the medium in which everything happens Characteristics- Market needs outside influences to help keep it clean. Some aspects of market and business are able to be ethical and clean, but not everyone cano Need government regulation to make sure businesses are being responsible o Government interfacing – 1887 Government enters into commercial market Created interstate commerce commission- Uniform laws to govern claims between stateso Sherman Anti-Trust Act – 1890These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Monopolies manipulating market (Rockefeller, Carnegie, Vanderbilt, JP Morgan, Ect.) Why didn’t invisible hand fix this problem? - Didn’t give it a chance to, OR- Politics – people assume business decision are made rationally and with complete informationo If monopoly forms from being an honest, good business, only repercussion will be that they must break up their corporation into smaller portions. o If intentional monopoly, problems occur. o Consumer Protection Acts – 1914 Federal trade commission and Clayton Acts- Strengthen Sherman anti trusto Horizontal restraint – companies lying on one marketing level, where companies agree to geographical distribution, price fixing, or dividingup a market in order to increase profits for each Regardless of reason, horizontal is always illegal. Per say violation, antitrust protects competition and market, but does not protect the consumero Vertical restraint – companies on different levels set a base price for all of their products that retailers must price them at. Can be illegal but not necessarily Rule of reason test – proving that a legitimate reason lies behind the motivation to price products at a base price for all stores – we want customers to know exactly how much it will be before even entering the store- Illegitimate – driving another company out of business- Tying – sell mine, cannot sell any others (unless the company is paying for
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