The motive of any business is profit making. In a competitive market, entrepreneurs devices several means where their goods and products can be price effective and at the same time where they can make more profit. In order to achieve this, entrepreneurs seek to reduce their cost of production so that the manufactured goods or products can have a fair competition in the market and at the same time profit will still be made. In a free market, there are different types of industries. Industries can be identified by their structure and the way they operate.
In a competitive market, we have industries that operate on a large scale. A major characteristic of industries that fall in this category is that they have financial muscle that ensures high productivity, higher profit margins and intensive use of capital. On the other hand, we have small and medium scale industries that are not as buoyant as the large scale industries. Industries that fall under this category are not as mechanized as those mentioned above. The profit margins are lower and productivity is lower.
Apart from this, small scale industries are labour intensive. Peripheral sectors are firms that belong to the small scale industries. Peripheral sectors operate mainly in an open and competitive market based on a capitalist economy. Peripheral sectors are distinguished by payment of lower wages, lack of union in the workforce, lower profit margins and lower output in production Although the cost of production in peripheral sectors is usually cheaper when compared to the large scale industries, peripheral sectors face the challenge of their workers not giving their best.
On the basis of this, as the chairman of the board of the organization, I will restructure the make-up of the organization by increasing the wages of the workers in the peripheral sectors. Apart from this, I will ensure that there is parity in the treatment given to the entire departments in the organization. In my opinion, people tend to contribute more and give in their best when they are treated fairly. I believe an organization can survive in a competitive market and still treat the workers fairly.
When the workers see the vision of the company or organization as their own, they will give in their best. Apart from this, the peripheral sectors need to have a voice and when they see that they are treated fairly like the members of other departments, they will be more committed to the development of the organization. Organizations do not survive by ripping off workers or stratification, rather, organizations are more productive when the arrangement is encouraging to the workers.