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Concept of Business Economics of Besco Limited | Report

   

Added on  2020-02-03

14 Pages3903 Words57 Views
Business Economics1

TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................31.1 Economic problem of scarcity and demand resource allocation in management of aneconomy.......................................................................................................................................31.2 Role of supply and demand in an economy...........................................................................41.3 Importance of varied market systems....................................................................................41.4 Elasticity of demand and assessment of importance of elasticity in market interactions......5TASK 2............................................................................................................................................62.1 Implications of its pricing and corporate objectives on its operations...................................62.2 Manner in which prices can be set in varied market structures.............................................72.3 Manner in which UK regulations influence market power....................................................8TASK 3............................................................................................................................................83.1 Manner in which structure of UK economy has altered in 21st century...............................83.2 Tools available for meeting macroeconomic policy .............................................................93.3 Evaluation of performance of UK economy within global market......................................10TASK 4..........................................................................................................................................104.1 Demonstrating theory of competitive advantage.................................................................104.2 Analysis of impact of emerging economies such as BRICS on developed economies.......11CONCLUSION ............................................................................................................................12REFERENCES..............................................................................................................................132

INTRODUCTION The concept of business economics deals with the issues that are attached with firm,management, expansion as well as strategy etc. In other words it is is referred to as the study offinancial issues and challenges that are being experienced by the business that are performing inspecific market place (Summers, 2014). The term economics is regarded as the study ofcomponents and functions of specific market place that includes demand and supply and itsimpact on the scarcity concept. In the present study concept of business economics has beendiscussed with respect to Besco Limited. The present report includes discussion on the problemsrelated to scarcity and demand resource allocation for managing economy. Further it includesperformance of UK economy within the global market. TASK 11.1 Economic problem of scarcity and demand resource allocation in management of aneconomyEconomic scarcity as well as allocation Scarcity can be referred to as absence of something. In respect to economics, the conceptis related with lack of adequate quantity of the economic resources that is comprised of labor,natural material as well as land etc. As a reason of presence of limited resources there is greaterimportance for Besco to make allocation of the resources in several operations in best way. Inrelation to UK the problem related with the economy emerges as a reason of low presenceworkers who are skilled. In the present competitive business environment the role of employeesis inevitable in the success of the business as they offer services to the customers for the sake ofsatisfying their demand (Naudé, 2010). Therefore the company is experiencing problemsregarding non availability of the skilled and efficient labor that leads to increase in cost of labor.In addition to this machinery exists in minimal use that influence the production in adversemanner. Therefore Besco Limited makes use of varied sources such as land, material, labor,money for the sake of ensuring optimum use of such. The allocation of the resource is theprocedure that lay emphasis on production of the goods in needed quantity so as to meet theneeds and wants of the customers consistently. 3

1.2 Role of supply and demand in an economyEquilibrium is considered as the point at which both the demand in market and producerssupply is equal to one another. Besco Limited can make determination of the equilibrium pointthrough demand of the customers at particular time at specific price as well as make comparisonof such with the supply (Vasant, 2012). In other sense the company can make comparison of thedemand and supply forces and make assessment of the equilibrium point at which both are equal.This is for the reason that such assist Besco in fulfilling the demand through supply of goods inadequate quantity. This act as an aid in attainment of greater satisfaction level among thecustomers. D S(Price)P E S DQ (Production)1.3 Importance of varied market systemsThere is greater significance of the several market system. This has been enumerated inthe manner stated as under: Free market economy: It is considered as the market system in which there is no role of theregulatory authority in terms of allocation of the resources is referred to as free market system.Under this system the determination of the prices is done at the intersection of the point ofsupply as well as demand curve (Winter, Sizmann and Vant-Hull, 2012). In relation with UK,such is prevailing within the free market economy. Thus manager of Besco Limited possessfreedom to make allocation of the resources in several activities in accordance with their desireand without government intervention. Command market economy: Government has fuller control on such market system as it whollydetermine the production and decision regarding marketing in order to control the supply4

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