What are established practices?

Also known as past practices, established practices are the activities of commercial companies based on politicians and procedures carried out and used by these companies in the past. The general concept can be applied to a wide range of situations outside the business world, including government operations or even medical areas. Sometimes expressed in a direct statement in legally binding contracts, established practices may also be obvious on the basis of the history of society and how the company officials applied politicians and procedures for specific events.

The value of established practices is that anyone who participates in society has a basis for reflection of the reaction of society officers to certain events. Based on how business worked in certain economic situations or has been dealing with changes in its internal structure, it is easier for employees, investors and other parties to predict how the company will respond to the current situation is in development. SinceThese past practices can be confirmed in the company's founding documents or at least widely used in previous situations, it can be very useful to take into account the planning of future events and deciding whether to keep your interest in the company.

Introduced practices have several advantages. The existence of time -recognized business methods helps to provide business operation with a certain degree of stability. For those employed by the company, that means a reasonable concept of what can be expected from one day to another. What has previously left can often provide a lot of information about how to deal with the expected changes in the market. Investors can also look at past performance and combine this history with the future in deciding whether to buy additional stocks, stick to those already purchased or sell all or part of the shares in anticipation of some future movementu on the market.

Although there are a number of advantages of established practices, it is also necessary to consider several obligations. After previous practices, regardless of any new approach, the company's ability to adapt to new market situations can often undermine. The ultimate result may be the loss of the volume of business and the market share, which eventually leads to the company's failure. A good compromise is always to benefit from established practices to determine the degree or relevance for new challenges, and then adapt or change or change if necessary to meet these new circumstances.