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Case Study On Transport For London TFL

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Added on  2020-01-23

Case Study On Transport For London TFL

   Added on 2020-01-23

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CAN UK GOVERNMENT EFFECTIVELYPREVENT FORMULATION OFMONOPLOIES AND CURB UNFAIRPRACTICES OF LARGE CORPORATION: ACASE STUDY OF TFL
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EXECUTIVE SUMMARYFirms exercising monopoly in the market enjoy a significant portion of market share, andin pursuance to the same determine all the forces and trends prevailing within the industry.Generally the focus of such entities is not on improving the quality of products, rather theyconcentrate on increasing the market share to increase the profits. The consumers are forced topurchase these products for non-availability of alternatives and moreover, pay an extra price. Inpursuance to the same the companies are required to promote and advertise their product,incurring significant expenses. Transport for London (TfL) is operating to manage the transportsystem of Greater London. It is a local government entity which is responsible for all the primaryroad routes, rail networks, trams, buses and all other related services. It is interesting to note thatthe body occupies a monopolistic position in the market and has been operating to govern all therail and road networks. The monopolistic position of TfL is supported by the government and nospecific measures are been undertaken to prevent the same. However, there are certain measureswhich purport to regulate the operations of the entity. 2
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TABLE OF CONTENTSCHAPTER 1. INTRODUCTION....................................................................................................41.1 Background............................................................................................................................41.2 Aims and Objectives..............................................................................................................51.3 Research Questions................................................................................................................51.3 Significance of research.........................................................................................................61.4 Structure of Dissertation........................................................................................................6CHAPTER 2: LITERATURE REVIEW.........................................................................................82.1 Introduction............................................................................................................................82.2 Concept of monopoly and unfair trade practices in market...................................................82.3 Merits and demerits of monopoly..........................................................................................92.4 Role played by government in preventing monopolistic behavior in UK market...............102.5 Role played by government in preventing unfair trade practices in UK market.................11CHAPTER 3: RESEARCH METHODOLOGY...........................................................................113.1 Introduction..........................................................................................................................113.2 Research Approach..............................................................................................................123.3 Research Philosophy............................................................................................................123.4 Research design...................................................................................................................133.5 Research Type......................................................................................................................133.6 Data Collection....................................................................................................................143.7 Sampling..............................................................................................................................143.8 Data Analysis.......................................................................................................................153.9 Reliability and Validity........................................................................................................153.10 Ethical Consideration.........................................................................................................153.11 Limitation of Study............................................................................................................16CHAPTER 4: DATA ANALYSIS................................................................................................164.1 Questionnaire.......................................................................................................................164.2 Research Findings................................................................................................................18CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................275.1 Conclusion...........................................................................................................................275.2 Recommendations................................................................................................................273
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REFERENCES..............................................................................................................................294
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CHAPTER 1. INTRODUCTION1.1 BackgroundTransport for London (TfL) is operating to manage the transport system of GreaterLondon. It is a local government entity which is responsible for all the primary road routes, railnetworks, trams, buses and all other related services (Transport for London, 2017). In the year2015-16 the entity was allotted a budget of 11.5 billion, which is constituted from all the fares(40%), government funds (23%) and miscellaneous sources (37%). TfL is the only governmentbody which is operating in the region for providing transportation services. Though the body hascollaborated with other private and public entities for different ventures, it still remains the onlybody primarily existing in the industry. It is interesting to note that the body occupies amonopolistic position in the market and has been operating to govern all the rail and roadnetworks. Monopolistic behavior of business organizations can be characterized as unfair tradepractice which sought to have detrimental effects on the market and economy of the respectivecompany. Firms exercising monopoly in the market enjoy a significant portion of market share,and in pursuance to the same determine all the forces and trends prevailing within the industry.The operations of such entities are of such a nature that the firm in itself constitutes to be theentire industry. They have the power to determine the prices. Moreover, the entire output of theconcerned industry is constituted from the output of such companies and hence any change intheir output has a direct effect on the market price. Attainment of monopoly is an entire processwhich can be achieved by different companies through varied ways. An entity could havedeveloped strategies for driving out the other firms from market and specifically catering to theneeds of customers. Another way through which this status can be achieved is that of mergersand acquisitions, which may reduce all the components into one. Apart from these major waysthere is also a possibility that the company may have started with a niche product and patentedits production. Hence, these are some of the ways through which occurrence of monopolies ismade possible in the market. The primary demerits of monopoly are that such companies are empowered to exercisetheir discretion in ascertainment of the market prices. In addition, they also have the capacity tomake changes in the product and make alterations by adding certain irrelevant features.Generally the focus of such entities is not on improving the quality of products, rather they5
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concentrate on increasing the market share to increase the profits. The consumers are forced topurchase these products for non-availability of alternatives and moreover, pay an extra price. Inpursuance to the same the companies are required to promote and advertise their product,incurring significant expenses. These expenses are eventually borne by the consumers throughadditional pricing. In spite of being attached with varied disadvantages, such behavior still existsin various industries. It is interesting to note that market possessing this element has strictbarriers both for entry and exit. This implies it is not easy for any entity to enter into the marketand break the monopoly. Scale of production may pose as one of the barriers for entry of a newfirm. A monopolistic firm shall be producing or operating on a large scale to cater to the needs ofthe entire market, and hence the overall cost of production is very low. However, it shall beimpossible for any new firm to operate at such a lower price. Hence, the present research shallfocus on the role of government in prevention of monopolistic behavior and other related tradepractices. 1.2 Aims and ObjectivesTopic: “Can UK Governments effectively prevent the formulation of monopolies andcurb unfair practices of large corporation: A case study of TFLThe present research aims “To ascertain if the UK Government can effectively preventformulation of monopolies and curb unfair practices of large corporation, specifically in the caseof Transport for London”. In order to accomplish this aim, the objectives of present researchshall be as mentioned herein:To understand the concept of monopoly and other unfair practices in marketTo determine the merits and demerits of monopolistic behaviorTo determine the role played by government in prevention of occurrence of monopolisticbehaviourTo determine the role played by government in prevention of occurrence of unfair tradepracticesTo recommend measures for government to prevent unfair trade practices in market.1.3 Research QuestionsThe research sought to respond to the following specific questions for attainment of aimsand objectives:6
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What is the meaning of monopolistic behavior and unfair practices in market?What are the merits and demerits of monopolistic behavior?What role is played by government in preventing monopolistic behavior from the end oflarge corporations ?What role is played by government in prevention of occurrence of unfair trade practices?What are the measures which government can undertake to prevent unfair trade practicesin market?1.3 Significance of researchThe present research shall determine the manner in which large corporations of UK areexercising dominance in the market by occupying a monopolistic position. The specific focus ofthis research shall be on Transport for London (TfL) which is the only government body which isoperating in the region for providing transportation services. Though the body has collaboratedwith other private and public entities for different ventures, it still remains the only bodyprimarily existing in the industry. Through this research the investigator sought to determine therole played by government in preventing such monopolies and other related trade practices in themarket. Lastly, it shall provide as an authentic source of information for the UK government inrespect to various measures which can be undertaken for prevention of such occurrence of anysuch practices. 1.4 Structure of DissertationTo undertake an effective and efficient research it is necessary for the researcher tofollow a structured format. This shall further enable the researcher to effectively achieve theaims and objectives of the present research, and moreover realize accurate results. In pursuanceto the same the following structure shall be followed: Chapter 1 Introduction: This section introduces the research topic and the significance of thesame for the government in relation to prevention of unfair trade practices.Chapter 2 Literature review: In this chapter all the research questions are answered on the basisof studies already undertaken by various authors and scholars. Chapter 3 Research methodologies: This chapter shall illustrate all the tools and techniqueswhich have been used in undertaking the research in an effective manner.7
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Chapter 4 Data analysis: It is the fourth chapter which shall contain an analysis of all the datawhich has been gathered by application of varied research tools and techniques. Chapter 5 Conclusion and recommendations: This section shall provide the findings derivedafter analysis of all the data. Moreover, it shall also state certain recommendations which thegovernment can adopt for prevention of unfair trade practices. 8
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