Article Review - Economic Concepts and Models

This article discusses the impact of business environment on the shipping industry using microeconomic concepts such as demand and supply, market structures, economic profit, and elasticity. The article highlights issues such as port congestion and increasing rates of hauliers.

Article Review - Economic
Concepts and Models

Table of Content
Introduction
Describing the
main arguments
of the given
article by using
microeconomic
concepts
Application of
microeconomic
theory for better
understanding
of discussed
issues
Conclusion References

Introduction
• Business environment can be described as a sum
total of all the external as well as internal forces
that impact an organisation functions either
directly or indirectly. Effective analysis of
business environment affects the performance,
processes and strategies of an organisation.

Describing the main arguments of the
given article by using microeconomic
concepts
• Presented BBC article summarises the varied issues faced by
shipping industry in relation to increase in prices of hauliers,
port congestion and spreading the use of Chinese products in
market. Main issues that are presented in given BBC article
in relevance with microeconomic concept are as follows:
• Port congestion
• Increasing rates of hauliers

Application of microeconomic theory for
better understanding of discussed issues
• There are several authors which have proposed various theories in
relation to microeconomic aspect that provides support for discussed
issues in a sizeable manner. Major theories related to microeconomic
aspect are demand & supply, market structures, economic profit,
elasticity and many more. Discussion of some relevant theories in
accordance with above stated issues are as follows:
• Demand and supply-
• Theory of elasticity

Conclusion
• From the above presented information, it has been assessed that there are various forces that
are present in business environment have their great influence on business operations. Due to
fluctuations in factors of business environment, organisation faces significant changes in their
operations. Macro business environment forces principally comprises of political,
technological, social, economic and legal aspects.

References
• Bedi, H. S., 2019. Innovativeness, business performance and environmental uncertainty: a multivariate
configuration. International Journal of Business Innovation and Research. 18(3). pp.328-345.
• Cristofaro, M., 2020. E-business evolution: an analysis of mobile applications’ business
models. Technology Analysis & Strategic Management. 32(1). pp.88-103.
• Kir, H. and Erdogan, N., 2021. A knowledge-intensive adaptive business process management
framework. Information Systems. 95. p.101639.