Business Economics Assignment : Marriott

BUSINESS ECONOMIC

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explains the economic issues of limited resources' availability and demand allocation of
resources......................................................................................................................................1
1.2 Discussing the operations of supply and demand within economy......................................3
1.3 Evaluate the significance of different market systems .........................................................4
1.4 Evaluates function of opportunity cost for taking decision with respect to economic
condition of market.....................................................................................................................5
1.5 Meaning of elasticity of demand and necessities within market interaction.........................6
TASK 2............................................................................................................................................7
2.1 Implications of pricing and corporate objectives on organisation’s operations ...................7
2.2 Comparing the way in which prices are set in different market structures...........................8
2.3 Way in which the market structure and operation decision affect chosen firm’s operations
.....................................................................................................................................................9
2.4 Evaluates how UK regulation affect the market power in Marriott......................................9
TASK 3..........................................................................................................................................10
3.1 Analysing the change in structure of economy in 21st century along with its effect on
business environment of Marriott.............................................................................................10
3.2 Evaluating tools to meet policy of macroeconomic............................................................11
3.3 Evaluating government policies which assist to achieve macroeconomic objectives........11
3.4 Evaluating the economic performance of UK economy in global market..........................12
TASK 4..........................................................................................................................................13
4.1 Describing theory of comparative advantage with examples.............................................13
4.2 Advantages and disadvantage for free trade.......................................................................13
4.3 Impact of emerging economic in developed nation...........................................................14
4.4 Assessing the consequences of current domestic and global shocks of economy of UK...14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

Illustration Index
Illustration 1: UK unemployment....................................................................................................2
Illustration 2: UK economic growth................................................................................................3
Illustration 3: Supply and demand market equilibrium...................................................................4
Illustration 4: Globalisation...........................................................................................................13
Illustration 5: GDP growth rate of UK .........................................................................................16
Illustration 6: World demand shocks.............................................................................................19
Illustration 7: World supply shocks...............................................................................................20
Illustration 8: World financial shocks............................................................................................21

INTRODUCTION
Business economics plays an important role in the success of every enterprise. It
is essential for the organisations to assess their future demand, cost, capital
management and achieve objectives of the firm (Harriss-White and Basile, 2014). In this
context, present report is based on Marriott hotel that provides different types of
hospitality services such as accommodation, hotel bookings, occasional services and
many more. In addition to this, it is the global international hotel which is leading with
more than 6000 properties in 122 nations. For gaining insight knowledge of the
enterprise, report covers scarcity and demand of resource allocation to manage
economy of the enterprise. Furthermore, it demonstrates the impact of pricing and
corporate objectives on business functions. Moreover, report assists in explaining
international market with applying different key indicators like GDP, unemployment and
many other elements. At last, report assesses the emerging impact on economic
elements.
TASK 1
1.1 Explains the economic issues of limited resources' availability and demand
allocation of resources
Limited resource is the crucial issue to allocate resources. It is the primary
problem which put a huge impact on Marriott hotel. Without scarcity, economic cannot
exist in the business because it is based on study of production, distribution and
consumption of goods or services (Dan, 2015). For example, if society is not making
any choice about their production, distribution and consumption, company is suffering
within environment. This is because; they are unable to satisfy each person’s demand.
Apart from this, if scarcity doesn't take place within market, all products and
services would be selling freely. Cost is an important element which creates scarcity. In
this aspect, there are various problems being faced by UK in their current economic
situation. They are as follows:
Unemployment: It is another problem in the UK which creates problem to allocate
proper resources. In addition to this, social division is also creating mass unemployment
in the areas of country. It generates adverse impact on the cited firm’s operation due to
1

few employees' availability in the enterprise (Galaskiewicz, 2016). In order to allocate
the resources, process and strategy is involved by Marriott hotel so that they are able to
deciding scares resources that used in production of goods and services. Resources
has been considered with factor of production that is something used in order to
produce goods or services. UK organisations allocate resources through using modern
tools that assist to promote effective results at workplace.
Low economic growth: Low economic growth adversely affect many economic
problems such as fall in real wages which make stagnant economic growth for living
standard of people. Since 2008, there is slowdown in the economic growth. This will
also create a negative impact on Marriott due to less availability of material ( Davenport
and Beck, 2013).
2
Illustration 1: UK unemployment
(Source: Pettinger, 2012)

1.2 Discussing the operations of supply and demand within economy
Supply and demand play a vital role to achieve equilibrium in the market. This is
because; when price increases in Marriott hotel, supply also gets enhanced but demand
is decreased in this situation. Hence, supply enhancing with prices due to high profits
earn by suppliers which is covered through costs. Requirement of customers also gets
enhances with low price due to their purchasing power and achieving higher value as
well (Guozheng, 2013). On the other hand, lower price of products and services also
create benefit equal to cost for most of the people so that demand will increase. Due to
enhanced demand and supply placed as per price, supply curve takes place upward
with change in price. However, demand curve is moves in opposite side with also
changes in price of product. As results, it can be stated that value of money is require in
equal position then equilibrium is achieves that is known as market equilibrium. Hence,
the prices are equal to equilibrium price (TANG and MA, 2014). This is because,
people consume products or services which create benefits at equal to the cost of
material. Besides this, if company sets their prices at low cost, they can supply easily for
3
Illustration 2: UK economic growth
(Source: Pettinger, 2012)