Deregulation
a) Consumers of the good/service
• Lower Prices.
• Increased availability of service.
• Increased efficiency.
• Loss of essential non-profit making services.
• Loss of quality in service
• Higher prices in future
• Increased competition / an increase in supply may cause prices to fall.
• With an increase in the number of suppliers, availability of the good/service may expand e.g. taxis in Kigali.
• With increased choice in suppliers the consumer may benefit from increased efficiency by firms.
• Non-profit making services may be discontinued by companies in an effort to reduce costs
• Quality of services may worsen to cut costs
• There may be higher prices in the future in order to survive the competition
(b) Employees in the industry
• Loss of employment in existing businesses.
• New job opportunities with new suppliers.
• Changed working conditions.
• With increased competition existing suppliers may suffer from a loss of business resulting in a loss of jobs.
• New suppliers may offer increased employment opportunities.
• The drive towards increased profits may mean that businesses may reduce the benefits to existing / new employees.
(c) Profits of existing firms
• No changes in efficiency or drive may lead to decreased profits
• Competition can lead to innovation and increased drive and hence to increased profits
• If existing businesses experience a loss of business, their market share falls resulting in a loss of profits.
• If the existing businesses are able to meet the new competition and expand their business activities the opposite of the above may occur. Business may experience economies of scale.
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MAZIWA DAIRIES LTD Maziwa Dairies Ltd. processes and distributes milk and milk products. Ngure, the proprietor of the business inherited the business from his father. He is conversant with details of buying, advertising and depot management. Each one of his depot managers and branch staff meet once every two weeks to review progress on operations. Ngure visits each depot every 2 to 3 days each week to work and supervise the branch managers. Ngure is worried about communication and the level of motivation among the employees of the enterprise. He feels that at the fortnightly meetings he had held, all his mangers and staff listened carefully, but judging from their actions, he has begun to wonder whether they had understood what he said. Ngure has noted that many o his policies were not being strictly followed,. For instance, in the stores, he often had to re-write advertising messages, while in some of the depots, the employees were talking of joining a workers union. Managers and employees were quoted as saying that they did not know the intentions of their employer. They believed that they could do better if they had an opportunity to communicate with Mr. Ngure and his assistants at the head office. On his part, Ngure feels that many of his managers in the head office and in the depots as well as most of the employees are merely doing their job. They are not showing any real imagination or drive. He is also concerned that some of his best employees had quit and taken positions with a competitor. Mr. Ngure has approached a management consultant to advise him on the best way to motivate his staff and communicate better. Required: What incentives would Ngure offer his staff in order to motivate them?
MAZIWA DAIRIES LTD Maziwa Dairies Ltd. processes and distributes milk and milk products. Ngure, the proprietor of the business inherited the business from his father. He is conversant with details of buying, advertising and depot management. Each one of his depot managers and branch staff meet once every two weeks to review progress on operations. Ngure visits each depot every 2 to 3 days each week to work and supervise the branch managers. Ngure is worried about communication and the level of motivation among the employees of the enterprise. He feels that at the fortnightly meetings he had held, all his mangers and staff listened carefully, but judging from their actions, he has begun to wonder whether they had understood what he said. Ngure has noted that many o his policies were not being strictly followed,. For instance, in the stores, he often had to re-write advertising messages, while in some of the depots, the employees were talking of joining a workers union. Managers and employees were quoted as saying that they did not know the intentions of their employer. They believed that they could do better if they had an opportunity to communicate with Mr. Ngure and his assistants at the head office. On his part, Ngure feels that many of his managers in the head office and in the depots as well as most of the employees are merely doing their job. They are not showing any real imagination or drive. He is also concerned that some of his best employees had quit and taken positions with a competitor. Mr. Ngure has approached a management consultant to advise him on the best way to motivate his staff and communicate better. Required: Identify and briefly explain the communication problems afflicting Maziwa Dairies Ltd. and suggest ways of solving the problems
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