Case Study Business Economics
Added on 2020-10-05
8 Pages2111 Words470 Views
Case Study BusinessEconomics
Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. Market imperfection and market failure affecting entrepreneurship activities, labour andfinancial products.........................................................................................................................12. Interpretation of sugar tax economic policies in shaping business strategies and managerialdecision making...........................................................................................................................3CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONBusiness economics can be defined as a filed of economics in which various economictheories are being applied for the purpose of analysing impact of numerous factors over theeconomic condition like profitability, marketability, sales volume etc. of the company. Thepresent case study shows impact of market imperfection and market failure over theentrepreneurship activities, labour and its financial products. It also shows a brief interpretationof effect of sugar policies in shaping the business strategies and managerial decisions.TASK1. Market imperfection and market failure affecting entrepreneurship activities, labour andfinancial productsMarket imperfectionMarket imperfection can be defined as a theory of economic according to which eachindividual have different expectations, each buyer may different information about the market.Further, it is also being assumed that there is no perfect competition exist in the market. Market failureMarket failure refers to a condition in the economic market in which suppliers gets failedto deliver sufficient amount of products and services and to fulfill the demand and needs of thecustomers as well (Anderson and et.al., 2015). On the other hand it can be defined as a situationarsing in the market that in which insufficiency of goods and service distribution in the freemarket. Both market imperfection and market failure have a huge impact over the management,decision making process and functioning of entrepreneurship activities, labour and company'sfinancial products. Various entrepreneurship activities such as advertising, development of goodsand services, etc. depends upon the expectations of customers, volume of demand and supply ofthe products in the market as per its imperfect conditions. Market imperfection influences themarket information provided to the customers about price, quality, product, etc. in this regard, itaffects the range of reaching the customers of market. Impact over entrepreneurship activitiesAn entrepreneur needs to analyse the actual market condition while performing itsbusiness activities. For the purpose of performing their business activities in an effective way,they need to analyse each situation for developing their strategies and plans for the company.1
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