All organisations need information to make effective decisions and to plan for the future. The information must be analysed and we must consider its implications
It is important for management to have a clear picture of where they are going and how they will get there.
Perfect competition means:
- There are many small companies relative to the size of the industry (no monopolies or companies big enough to control prices)
- Products produced by the different companies are identical. There are perfect substitutes and demand for the products are perfectly elastic.
- Entry and exit barriers are low. Competitors can freely enter and exit the market.