Dealers point - how household brand market chain innovation.docVIP

 PAGE \* MERGEFORMAT 8 Dealers point - how household brand market chain innovation Well-known institutional economist, Nobel Prize winner Coase, had a very interesting interpretation of the market economic phenomenon, that in a market economy, enterprises are how to produce. His theory very deep, for ease of reader understanding, the author Almost the whole side, with the plain language interpretation of it. The market economy is by trading, trading, the price mechanism to operate, but the company is actually a by program executive order to operate, and for some medium and small enterprises, rely on business owners (including the orders to the operation of the competent layers. companies operating mechanism of this operation is not a law and a market economy contrary to it? core of Coase’s theory of a market economy are all in the cost of any transaction, the enterprise exists because the cost is lower than the internal organization of the market transaction costs. Enterprises is planning, control, coordination, command and other administrative means to manage, but the market is managed through the price mechanism. And the price mechanism is not free. in order to save market transaction costs, such as the cost of gathering market information, bargaining costs, identify strengths and weaknesses of the costs, companies appeared on the market economy. Put in place in the popular that the business owners were willing to pay wages for staff working within the company, the boss orders, obtain the fruits of labor of employees, rather than from the market by buying and selling to get the fruits of labor of employees is Because the internal organizational costs to be lower than the cost of buying in the market. According to the above statement, the enterprise exists because of the internal organization of low-cost, enterprise more efficient and higher output. The actual situation, as the business development and growth, it is not. Enterprises greater the more busin