Monopoly Regulation


Monopoly is usually considered to lead to economic inefficiency. Excessive monopoly profits are commonly regarded as unfair to consumers. Policies for dealing with monopoly range from laissez faire or toleration at one extreme to “trust-busting” at the other. Another possibility is to put monopolistic enterprises under government ownership, as is commonly done in Europe for railroads and telephone service. Regulation of the monopoly’s price and quantity or quality of service by a government agency is important. In the US regulation is standard practice for privately owned ‘public utilities’ providing goods and services such as electric power, water and gas, telephone, and transportation—usually thought to be natural monopolies.

The standard philosophy of regulation aims at limiting the monopolist to a ‘normal profit.’ Normal profit is supposed to be just adequate to attract needed capital and other resources into the business, but not so high as to represent exploitation of consumers. Normal profit in the accounting sense corresponds to zero economic profit. Zero economic profit characterizes long-run equilibrium in perfect competition. In a sense regulation achieves the result that may occur if competition is possible.

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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Transformation into an Enterprise Colony


Modern corporations need to transform themselves into enterprise colonies that can tap, build and realize the entrepreneurial potential within their people. Companies should provide venture teams with development capital, marketing assistance and central services in return for an appropriate equity stake in new initiatives.

Empowerment and delegation are being championed in many companies. But empowerment to do what, and delegation for what purpose? General drives need to be matched with specific steps to promote enterprise and build entrepreneurial qualities.

Confident companies encourage people to better understand their inner selves, and take advantage of their unique qualities and distinctive strengths:

  • They invite suggestions for new ways of exploiting corporate capabilities, and building and delivering value to customers.
  • They stimulate diversity, establish working environments that are conducive of reflection, and introduce ways of working and learning that raise spirits and fire the imagination.
  • They encourage the creation, packaging, sharing, application and exploitation of new knowledge and understanding.
  • They are also prepared to share rewards with those primarily responsible for successful entrepreneurship.

Personal and corporate transformation must go hand in hand. Increasingly, people need to think for themselves and make choices. Many intending entrepreneurs require new skills and knowledge, and specialist support. Many traditional management tools and techniques are simply not appropriate for those who seek both business success and personal fulfillment.

Small and medium sized enterprises (SMEs) and new corporate ventures are the primary source of tomorrow’s work opportunities. In recent years governments and corporate leaders around the world have put a higher priority upon enterprise and entrepreneurship. The aspiration is clear. However, many people lack the competence and experience either to become entrepreneurs, or to manage corporate relationships with them.

Enterprise needs its own entrepreneurs. Slimmed-down organizations require the services of counsellors with the experience, sensitivity and intuition to help others to become successful entrepreneurs, while the resulting ventures will need learning and enterprise support services at various points in the enterprise life cycle.

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