Purpose of Business

Consolidation owners and managers will often be responsible for creating business strategies to ensure the business operations continue in perpetuity. One strategy is consolidation, which has a few different purposes in business.

business Consolidation is an accounting process where parent companies must report financial information from a subsidiary on the parent company's statements. Companies may also combine or merge operations internally or with another company, which is a consolidation strategy.

Businesses can use consolidation as a retrenchment strategy. This allows the company to reduce unprofitable operations and save operating costs. Merging with another company results in a consolidation and can save the company from entering bankruptcy.

Business owners and managers can use consolidation to improve their competitive advantage in the economic market. This can improve overall market share and result in the company receiving more technology or production systems that allow the company to improve operations.
How to Solve the Scarcity in Economics

Shortages of goods can occur for a variety of reasons.
we are out of coffee image by Georgios Alexandris from Fotolia.com

Scarcity is a critical economic situation in which demand for a product exceeds supply; for example, when gas stations run out of fuel, or even more importantly, when supermarket shelves are empty. Scarcity occurs when the readily available supplies are no longer able to satisfy the consumers' demand. Various economic, natural, political and even behavioral factors contribute to this problem, so its solution is neither simple nor immediately effective to stabilize the market.
Instructions
Determine the reason for the problem. Scarcity can occur when the outdated market system prevents the quick replenishment of stores, when natural disasters affect farming production, when imports are no longer possible due to political or economic policies, or when consumers unexpectedly buy large quantities of specific products.
2
Modernize the distribution system. Villages, small towns and islands are the most frequent victims of scarcity as no roads exist for big cargo trucks to safely transport goods, nor ports for cargo ships to approach.

Adjust prices so they correspond to society's new conditions. In China, for example, prices of consumer goods have been extremely cheap. But with the emergence of a huge middle class after the country's economic boom, if there is no rise in prices to discourage buyers from unnecessary spending, then the resources will become increasingly scarce.
4
Increase imports when domestic supplies are not enough. For example, tea production in the United Kingdom cannot satisfy the citizens' demand. It's essential to import tea from India and China. Try to resolve political issues that prevent foreign economies from doing business with your country, as happened in the 1973 oil crisis when OPEC and other oil-producing countries placed an embargo on oil to the United States because of its support for Israel during the Yom Kippur War...