Final answer:
A practice safe and efficient in organizational operations is coined as a 'business necessity'. It is essential for operations, adheres to legal and industry standards, and guides strategic business decisions including safety, compliance, and economic strategies like the utilization of Economic Base Analysis.
Step-by-step explanation:
A practice necessary for safe and efficient organizational operations is known as a business necessity. This concept refers to the essential practices that businesses must adhere to in order to operate effectively and within legal requirements. Such necessities can range from maintaining certain standards of safety to complying with specific regulations that apply to a particular industry or sector.
Within an organization, certain requirements must be met for operational safety and efficiency. For individuals aiming to practice law, joining the American Bar Association or a state bar association is often a necessary step. Similarly, union membership historically had significant implications for workers' ability to work, especially in areas influenced by political machines.
Economic Base Analysis is a tool used to understand economic activities within an area and identify basic or non-basic industries. Knowing which industries are driving money from outside versus serving local needs can be critical for a business's strategic planning. By employing location quotient formulas, businesses can determine saturated markets or potential opportunities, which is paramount in making decisions about the location or nature of a new business.
Also, understanding market structures, which encompass the levels of competition and the ability of a firm to control its product pricing, is a vital business necessity. Additionally, concepts such as absolute and comparative advantage encourage specialization and facilitate trade. The development of global trade markets speaks to the larger context in which businesses must understand their economic base and tailor their operations accordingly.