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Summarise the main information available in that report to small business operators. Illustrate your answer with examples Essay

  • Category:
    Business
  • Document type:
    Article
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    822

Title: Report Summaries

Question 1

Over the last decade APEC economies have opened markets aimed at attaining significant gains in global growths and exports. They have also recognized the potential for increased participation by small business in global trade to contribute to employment, income and general economic growth. In developing economies, small businesses are seen as potential instruments of poverty alleviation. Small business operators are flexible, resourceful and have the capability to identity business opportunities that are vital to initial success of their business (DFAT 2001).

Small business operators are conscious of their customers and offer quality products that meet the needs of their customers. The small businesses operate in niche markets and their services or products are viewed as strength. Operators place superior significance on developing the skills of their employees so as to deliver quality products and superior customer service and view the skill base of their employees as significant in taking their firms to the next stage of turnover. For instance an efficient and service culture is fundamental to the success of the Australian fashion exporter Boots on Line firm. Through focusing on limited resources and ensuring the concerns and queries are handled within the shortest time possible, the firm has the ability of growing existing relationships and attracting new business (Hall, 2001).

The small business firms are capable to capitalize on networks of operator contacts in creating opportunities for sale as well as accessing support and valuable information from the government and their capability to overcome barriers is greatly as a result of good management. For instance, government sponsored training programs are providing a small business operator in Philippine, Vjandep Pastel Bakeries with the essential capability to effectively manage and expand its business. Access to this program is vitally significant for small firms with limited business operation and managerial experience. Also, the export success of a small Japanese engineering business, Unirex Kabushiki Gaisha has been enhanced by the firm’s development of an extensive consumer networks in China and relations with government agencies and large trading houses.

Question 2

The restrictive trade practices prohibited by the Trade Practices Act are misuse of market power, resale price maintenance, exclusive dealing, agreements that considerably reduce competition, price fixing or market sharing agreements and agreements that generate secondary or primary boycotts and acquisitions and mergers considerably reducing competition. Businesses are not allowed to share markets between them or limit supply of services and goods. Businesses are also prohibited from setting a price they will charge and bid rigging, where competitors don’t genuinely compete with one another for specific tenders (Williams, 2001).

The Simply No Knead case is an example of a case involving restrictive trade practices. The Simply No Knead franchising company was had committed unconscionable conduct which is prohibited by the Trade under section 51AA. The Act forbids businesses from taking part in unconscionable conduct or restriction of supply of goods or services to consumers. The franchisor contravened this rule by refuting to deliver products to several franchisees.

The franchising company also practiced exclusive dealing by refuting to discuss particular issues of dispute with franchisees, and erasing the phone numbers of several franchisees from Telstra directory without authorization or knowledge of the franchisees. The company also omitted several franchisees from its marketing, refused to offer disclosure documentations when requested and sold services and products in the regions of franchisees (Lindsey, & Loewinger).

The court discovered that the franchisor utilized unfair tactics 51AC (3) of the trade practices act through refusing to deliver particular products. In addition, its rebuff to discuss issues in dispute with franchisees except on its individual terms was found unreasonable, harsh and unfair in regard to the nature of relationship between the franchisor and the franchisees. The trade practices act prohibits unconscionable conduct, but in order to be given a relief under the equitable doctrine, the accused party is supposed to ascertain that it is under a unique disability that the other party was aware or ought to have recognized that the conduct of the strong party was not consistent with good conscience under the situations (Allen, 2003).

Businesses are not supposed to take unfair advantage of an individual or a group of persons who are in a susceptible position through entering into business arrangements without making sure that the individual has adequate knowledge of the effects and terms of the arrangement as it was the case with the franchising company (Riley, 2005).

Bibliography

Department of Foreign Affairs and Trade (DFAT), 2001, ‘The APEC Region Trade

and Investment 2001’, Australia.

Hall, C, 2001, ‘Profile of SMEs and SME Issues in APEC 1990-2000’, 2nd draft report.

Williams, P, 2001, Trade Practices Act: a twenty-five year stocktake, The Federation Press, Australia.

Allen, G, 2003, Monopoly and restrictive practices: Volume 1, Taylor and Francis, England.

Lindsey, M, & Loewinger A, 2006, International franchise sales law, Aspen Publishers New York.

Riley, J, 2005, Employee protection at common law, The Federation Press, Australia.

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