When you are part of an industrial organization or even if you intend to set up such an organization, it is important to master the workings of the said organization. It is especially necessary to have knowledge of the levers on which to press to fructify the incomes of the company to ensure its good functioning. This is what we propose to you through this article. Read to the end to better understand.
Understanding the industrial economy
We can't talk about business or industrial organization without taking a look at the economy. Click on this link hawksford.com to have more information. Indeed, industrial economics is essentially concerned with the study of the organization and functioning of companies and markets in the real world.
This study takes into account several points. First, there is the study of the determinants of the behavior, size and scale of the said organization. Second, there is the consideration of imperfect competition. This means that we must assess the extent to which the functioning and performance of the market are influenced when the conditions of perfect competition are not effective.
Finally, we must consider the study of public policies on the organization. Taking these different levels into account allows you to understand how the economy of an industrial firm evolves.
The industrial organization as a production process
It is important to understand the technical characteristics of an industrial organization. First of all, its purpose is to produce certain goods or services. To produce these goods, it combines several factors of production like work, machines, premises, intelligence, knowledge, raw materials or intermediate goods.
Moreover, an industrial organization has the obligation to fulfill certain functions. The first is that it is an instance of coordination of the production process. The second is that it distributes the value created among the parties involved in the process. Industrial economics is interested in the interactions between the different actors of the market (companies, consumers and the State).
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