The Future Economy
Imagine yourself living the dream of being an entrepreneur. You are a business man of the 21st century; you have a popular product that many firms want to purchase. You feel financially secure with your future because of the amount of buyers for your product. Then 5 years go bye, and the once abundant number of firms has dwindled down to a couple of major corporations. You try to think to yourself how did this happen? You then realize that all the little companies that fought for your business, and helped you get the highest capital are gone. They were acquired by or merged with larger firms. You know that when this happens the market gets smaller and there are less people to buy your product. With fewer options of companies to sell your product to, comes a smaller amount of profit for you. Two more years go bye and the market gets more concentrated, the remaining giants can now offer you any price they want. If you choose not to accept it, you don't sell your product. Your dreams of being your own boss and selling a quality product for a fair price are fading away. Some people may think that this story couldn't happen, but mergers and acquisitions take place everyday in the corporate world. This story that I j
If I had the other three firms information on the market value they have. I could figure out if the market is highly concentrated or somewhat competitive using the Herfindahl-Hirschman Index which you showed us in class. To beef producers the debate is not theoretical. Mike Riechers, a cattle farmer in southwestern Wisconsin said he believes the competition among cattle buyers dropped in 1998 after Packerland took over the operations Murco Foods. With Smithfield buying Packerland and American Foods farmers are concerned that competition could drop even further. State Agriculture Secretary Jim Harsdorf also expressed his concern about the consolidation saying "we need to make sure there's still opportunity and competition out there, or the producers are the ones who are going to see their margins cut." The nation's livestock sector is already highly concentrated, a point that is made repeatedly by farm organizations and others. Serious questions have been raised about vertical and horizontal integration and market power that puts small livestock producers at a disadvantage and puts consumers at risk. The farmers know that the Smithfield acquisitions further concentrate U.S. meatpacking and eliminate an important competitor in the purchase of livestock, very likely resulting in lower prices for producers. Wisconsin beef producers are definitely concerned about the latest news of Smithfield's plans involving Packerland and American Foods.
Some common words found in the essay are:
, American Foods, Jim Harsdorf, Cudahy Inc, Herfindahl-Hirschman Index, Department Justice, Mike Riechers, Co Smithfield, Due Wisconsin's, Statistics Service, american foods, beef cattle, smithfield believes, packerland american foods, beef producers, herfindahl-hirschman index, sell product, milk production, highly concentrated, product fewer, business 21st century, packerland american,
Approximate Word count = 988
Approximate Pages = 4 (250 words per page double spaced)
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