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Essay About Business

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Business essay or any other essay on business should be written on some interesting idea. "Business - is a combination of war and sport"(A. Maurois).

In my opinion, in the basis of this statement we can find the actual problem of the relationship of free entrepreneurial activity and competition as one of the mechanisms of the market structure. To justify my attitude towards this statement, I will refer to such concepts as "business", "competition", "perfect and imperfect competition." So, under the concept enterprise (business), according to Wikipedia, is generally understood a certain way of managing, established in the economy, the purpose of which is to make a profit by meeting the needs of society.

Thus, for example, in his conception of socio-economical development, famous Austrian economist F. Hayek emphasizes that in modern conditions the entrepreneurs  operate within the high market competition and the winner is the one who will survive in this competition. Under competition we understand the competition of economic elements in the market, for the preference of consumers in order to obtain the greatest profit. Competition forces entrepreneurs to search for new products, using different raw material markets, looking exactly for the newest industrial combinations, which provide dynamic development of the economic system. With the ability to express themselves, people are finding innovative ways of solving problems, thus a person is able to offer the community something new. Hence: the business purpose for today is, in my opinion, not only to make a profit, but also in social responsibility, which implies a relationship of trust and partnership.

The analysis of social responsibility of business is determined by the necessity of understanding the processes of creating a moral climate and the development of business ethics, contributing to the development civilized of business. But is the struggle between entrepreneurs is civilized? In this connection, I consider it necessary to refer to such concepts as "perfect" and "imperfect competition." I'll start with the fact that, in my opinion, the main thing in a market economy is the economic freedom, under which the possible so-called perfect (free) competition - kind of competition in which the price is determined as a result of balancing supply and demand curves. So, perfect competition  is when the market has a large number of sellers, in which each of them, providing almost tiny fraction of the total supply, is virtually unable to act on the proposal, and, consequently, the price of the product.

However, perfect competition (perfect, which does not exist in its pure form) is opposed to the imperfect, which creates an oligopolistic market where several large companies fully control the production and marketing of certain types of products.

Under such conditions, free competition or contest, similar to sports, is impossible. There is a fierce battle, or, in the words of the author, a war in which the strong contenders corner weaker and supersede them (kill) from the market. That's why Maurois compares business with the war or competition. And yet, I think it is possible to achieve fair competition and to prevent destabilization of the market situation.