Research Essay Example | Topics and Well Written Essays - 750 words - 2

Research - Essay Example Business leaders may want to overprice their products in an effort to cover their costs. However it can result in declining sales for businesses. While all business leaders want their businesses to grow, uncontrolled growth of business can lead to failure for an organization. Adverse selection involves a situation where a buyer or seller  of a product or service is unaware of the quality or state of the product or service. This allows them to approximate what they feel is an accurate price. Because of this lack of information sellers are less likely to offer quality goods and services. Managers face a multitude of challenges when they run their businesses. Some of these challenges include pricing techniques and operational problems. If these problems are not managed effectively and /or resolved it could lead to various problems for the organization. Predatory pricing can be defined as â€Å"an anti-competitive measure employed by a dominant company to protect market share from new or existing competitors†. (â€Å"Predatory Pricing†,n.d.) The gradual reduction of the price of a product may indicate predatory pricing. A firm may want to have a monopoly over a certain market so it sells its products at prices below the firm’s costs of production. ... Certain health care systems may engage in predatory pricing with health plans not in their network in order to prevent smaller hospitals from becoming fully fledged competitors. This practice results in a managed care system monopolizing an aspect of health care. In 2011 the United States Department of Justice stated that United Regional Health Care System had participated in predatory pricing practices with certain managed care plans to eliminate Kell West Regional Hospital as competition. â€Å"DOJ (has alleged ) that United Regional’s managed care contracts with non- Blue Cross plans harmed competition by excluding Kell West from the payer’s networks in exchange for increased discounts on all services at United Regional.† (Argue , n.d., para. 2) Other health care providers may engage in predatory pricing in an effort to prevent new competitors from participating in a certain health care market. â€Å"Management information systems (MIS) are a set of procedure s to collect important business information for making management decisions.† (Vitez, 2012, para 1) While technology has made the implementation of MIS simpler there are still some disadvantages. Management personnel may spend a great deal of time designing, reviewing, implementing and controlling the MIS. This can result in the hindrance of the decision making process of managers. This poses challenges to MIS theorists since some MIS tend to not be adaptable.† (Nowduri , 2007,p.8) Company leaders may not be able to effectively perform their duties if too much time is spent focusing on MIS. It can also be a very complicated system.MIS processes may be disruptive to business operations if the system accumulates an overabundance of information that is irrelevant