Economics for Business - (Assignment)
Added on 2021-01-01
14 Pages3716 Words104 Views
Higher Education
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ECONOMICS FORBUSINESS
Table of ContentsINTRODUCTION...........................................................................................................................1INTRODUCTION TO COMPANY................................................................................................1INDUSTRY BACKGROUND........................................................................................................2MARKET STRUCTURE OF THE INDUSTRY............................................................................3FACTORS THAT INFLUENCE DEMAND FOR COMPANY'S PRODUCT(S).........................6FACTORS THAT INFLUENCE SUPPLY FOR COMPANY'S PRODUCT(S)...........................7ELASTICITY..................................................................................................................................8IMPACT OF AN EVENT ON THE INDUSTRY...........................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONBusiness Economics is a discipline subject which deals with analysis of businessenterprises having diverse nature and size using various tools, theories and techniquesof applied economics in a quantitative manner. This report aims to provide a detailedaccount of economic concepts and their application in relation to AustralianConstruction Industry (Brückner and Pellegrino, 2016). For this purpose, LendleaseGroup (LLC) which is a leading company of this sector has been chosen to depict thechanges and impact of economic variables on its operations and decision-makingcapabilities. In order to analyse the contribution of this industry in developing thenational GDP and growth rate of Australian market, some key statistics also presentedunder this assignment (Fizel, 2017). For this assistance, a discussion related to demandelasticity for determining whether products or services are elastic or not is also made.Furthermore, an analysis is done on current event of construction industry which has alikely effect of event on market demand and supply. INTRODUCTION TO COMPANYLendlease is a multinational company deals in construction and real estateindustry. It is headquartered in Barangaroo, Sydney and established in 1958 by DickDusseldrop. The company is dedicated towards creation and deliverance of innovativeas well as sustainable infrastructure or property to customers and their futuregenerations (Hill, 2016). It also provides finance to building constructors and operatesbusiness in more than 40 countries to manage big projects of building. Some of themain projects undertaken by this company include renovation of sport centres, expresshighways, housing and infrastructure. The main areas of expertise include design,development, investment, management of construction of various facilities in differentfield. This firm has also employed to over 13k people that operates throughout itsoverseas business also, which are administered by head office in New South Sales, atBangaroo (Seaman and Young, 2018). From given income statement, it has beeninterpreted that LLC Group has generated over $17,068m in 2018 that generates highprofitability (Lendlease Report 2018 Annual Report, 2018). 1
INDUSTRY BACKGROUNDConstruction industry in Australia is considered as one of the fast growing sectorthat contributes a large share in economic development and overall GDP (Bleikh andYoung, 2016). With this assistance, construction work at commercial sites hasincreased over 9.3% in 2018. Due to constrain performance of respective industry fromlast five decades has led to employ over 1.1 million people. Along with this, divergenttrends in construction work has also sharpen the revenue and share of GDP over 8%(10 Statistics Defining the Australian Construction industry, 2018). It is to be expectedthat commercial construction work till 2018 will rise by 9.3% (Raja and Pahat, 2016).According to below mentioned statistics, it has interpreted that construction industry in2016 – 17, has contributed to 0.9% 0r $306 million in GDP which is 1% less than EBITAreport (Albort-Morant and Ribeiro-Soriano, 2016). 2Text 1: Income Statement of Lendlease Group
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