COVID pandemic

Scenario 2

Prior to the COVID pandemic, June Holly, and engineer and microbiologist invented and manufactured of a device called “Anti-Bio Mist Distribution System” (ABMDS) that sprays disinfectants and is designed specifically for commercial entities such as airlines, big box stores and public transportation. She was the industry leader and had endorsements from giant conglomerates such as Walmart, Proctor & Gamble and General Foods. She set prices, distribution and her system was unsurpassed.

June Holly employed an aggressive accounting firm and consistently executed refined methods to push the few competitors out of the industry. For years she controlled this corner of the disinfectant industry. June Holly was queen of the disinfectant sprayers and was untouchable. The government remained detached from her business which provided her the opportunity to keep her control of this industry.

Then COVID struck and the need for ABMDS was huge. Also, due to the situation, the work force and supply chain was reduced so manufacturing was delayed. Of course, other manufacturers popped up everywhere and June Holly was losing the grip on her queendom. She had to at fast, either beat them or join them.

Considering the reality of the situation, she figured her best bet was to join them. June Holly met with the four biggest competition company leaders to discuss strategy. They all get business from Requests for Proposals (RFPs) and submit bids. They came up with a pricing chart which of course was 30% higher than the usual pricing. Then they agreed to a rotation schedule to accept jobs so they will each have equal opportunities. They felt due to COVID they have a captive audience and they should all end up with great profits.

2-1) June Holly runs the business aspect of ABMDS without government interference. Please discuss the terminology and why this is an accepted practice.

2-2) Prior to COVID, June Holly had control of the entire market and eliminated competition. Since she was pretty much the only one in the industry, what is the terminology for this situation? Please discuss the impact of this business situation on the consumers.

2-3) Using the correct terminology, please explain the process when business leader agree on bidding certain amounts and what is the outcome of this practice?