MAKS Services Limited (MSL): Manning with Monopoly?
Nandu Kumar (Nandu) set up MAKS Services Limited (MSL), an organization to provide semi-skilled or unskilled workers (domestic help,office attendants, etc.) on demand at homes, offices, business setups, etc., in Karimnagar city. Nandu registersed semi-skilled/unskilled people who were on the lookout for employment, provided training and employment as domestic help, office attendants, facility staff, etc., in various government and private offices, business setups, homes, apartments, etc., within the city of Karimnagar. On one hand, the customers found MSL’s services satisfactory because of the background verification carried out by the company with respect to the recruits and ease of replacement. On the other hand, the recruits were happy as MSL provided them with a decent salary and extra benefits like PF, ESI, paid leave, etc. The only problem was that as MSL was the only player providing such organized services in the city and its services were highly priced in comparison to the fee demanded by the intermediaries or similar service providers operating in other cities. This caselet enables the students or participants to discuss the concepts of varieties of Imperfect Competition, sources of market imperfections and the concept of Monopoly and Monopoly behavior.
Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion
The participants should be asked to read the following chapter to help them connect the concepts discussed in the caselet:
- • Paul A. Samuelson, et al., “Imperfect Competition and Monopoly”, Economics, 19th Edition (Special Indian Edition), McGraw Hill Education (India) Private Limited, 2014 – To understand the concept of Imperfect Competition and Monopoly
Case Positioning and Setting
The caselet can be used in MBA, Executive MBA or Executive Development Programs, for the following module/topic:
- • Imperfect Competition and Monopoly – To understand the patterns, varieties of Imperfect Competition, sources of market imperfections and the concept of Monopoly and Monopoly behavior
- I. What do you understand by Imperfect Competition? What are the various types of imperfect competition? What do you think are the factors responsible for the creation of the different types of market structures?
- II. What do you understand by Monopoly and what is its behavior? What are the different types/reasons for monopoly? What do you understand by a competitive monopoly and can you make a reasonable case for competitive monopoly?
- III. .............
Preamble to the Caselet Analysis and Suggested Orchestration
This caselet provides an opportunity to understand the imperfect market structures and the factors that lead to these imperfect competitions. It also introduces the students/participants to the concepts of monopoly, which is one of the important types of imperfect competition. Further, it helps understand the various types of monopoly. The caselet facts are analyzed for the cost, revenue and profit relationships under a monopoly. This caselet analysis was carried out as presented in Exhibit (TN)-I............