Industrial Competitiveness


The European Management Forum defines industrial competitiveness as “the immediate and future ability of, and opportunities for, entrepreneurs to design, produce and market goods within their respective environments whose price and non-price qualities form a more attractive package than those of competitors.”

The major factors affect competitiveness:

  • The dynamism of the economy measured by criteria such as growth rates, monetary strength, industrial production and per capita performance.
  • Industrial efficacy, which involves direct and indirect employee costs, per capita output, employee motivation, turnover and absenteeism.
  • The dynamics of the market, when efforts to improve competitiveness are increased and better directed to more intensive market forces.
  • Financial dynamism that is the strength and importance of the commercial banking sector, stock and bond markets and their ability to provide capital.
  • Human resources that is the dynamism of the population and the labor force, employment, unemployment, executive quality and motivation.
  • The role of the state in fiscal policies and other regulations.
  • Resources and infrastructure (transport and communications facilities), domestic energy and raw material sources.
  • Outward orientation, the will to promote trade actively, buying and selling goods, service-related investments or any other form of international exchange.
  • Innovative forward orientation which emphasis national research and development efforts, corporate and government attitudes to exploiting new ideas, products and production processes.
  • Socio-political consensus and stability, the degree to which strategies and policies reflect a society’s aspirations.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Knowing about Cartel


A cartel is a group of firms combining to restrict output and raise price, the aim being to balance as a collective monopoly. Each firm in a cartel agrees to produce less than it would under unrestrained competition, in order to drive the price up so that all in the group will benefit.

Cartels can only raise prices by cutting firm outputs. But at the higher prices, member firms are motivated to produce even more than at competitive equilibrium. So the more successful the cartel, the greater the incentive to chisel. Carters therefore require enforcement devices to prevent chiseling. In a number of European countries, the law may treat a cartel agreement as a legality enforceable contract. Some jurisdictions take a neutral position: the cartel agreement is not unlawful, but the power of the state will not enforce it. Finally, the law may be actively hostile to cartels as “consipiracies in restraint of trade.” In such a situation a cartel would require enforcement devices that are both effective and secret—an unlikely combination when any detected chiseler can complain to the authorities.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight