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Economics and Theoretical Underpinning of Firm Structure and Market Competition

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Abstract

Introduction A firm structure is regarded as a particular system that provides an outline of how organisational activities are coordinated to achieve specific targets for the business enterprise. The activities could range from defined rules governing the internal operations of the business, roles, and responsibilities of the persons involved and even the relationships within and without the premises (Huczynski, Buchanan & Huczynski, 2013). The organisational structure also provides channels for how information flows from one level to another within the organisation as well as how it flows to the outside community. The paper will use food and beverage manufacturing firm, specifically Primal Pantry, as an organisational context to provide a better understanding of the concepts under investigation. Primal Pantry is a small UK based firm that is specialised in producing what the founder, Suzie Walker, calls the ‘real food revolution. Founded in 2014, the small company retails local products, made from simple ingredients that can easily be found in consumers’ cupboard but has emphasised on producing health snack alternatives that one can grab on the go. The choice of the company for the present article is based on two major reasons. One, Primal Pantry is a small firm based in the United Kingdom which is the focus of the study. For this reason, the company becomes a suitable reference point to adequately understand the main concepts of interests, namely firm structure, and business competition. Second, as a company, Primal Pantry is in relatively competitive industry. In effect, Primal Pantry provides a suitable ground to correctly understand the second concept, market competition, as it shapes the environment for companies in the food and beverage manufacturing industry. Thus, this paper packaged food industry as an organisational context for discussing the different business or organisational circumstances for a firm structure and market competition.

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