Economics for Business

Running head: Economics for Business 1
Economics for Business
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Economics for Business 2
Executive Summary
In this report, has identified and explained how the economic factors like demand and
supply affect the business operation in the market. All this is carried out considering Woolworth
Company limited as the selected organization in the Australian market. This organization falls
under the retailing industry which it's market structure has identified, the influence of demand
and supply factors, demand elasticity and another event which is currently affecting the demand
and supply in the industry.

Economics for Business 3
Table of Contents
Introduction..........................................................................................................................................3
Introduction to the company................................................................................................................4
Industry Background............................................................................................................................4
Market structure...................................................................................................................................5
Market Analysis of the Woolworths Limited.......................................................................................6
Determinants of demand.......................................................................................................................7
Determinants of Supply........................................................................................................................9
Demand elasticity................................................................................................................................10
Factors affecting elasticity of a demand.............................................................................................11
The event which has a substantial impact on the industry.................................................................11
Conclusion...........................................................................................................................................13

Economics for Business 4
Introduction
The economy of a business into a country is significant to be considered as the main
factor for the company growth in the selected industry. Knowing the economics helps the
organization to study the market structure with the industry, the demand, and supply factor which
affects the organization product and enabling the organization to set up viable strategies which
will help to grow in future. Government has control over the country's economy since it is the
only the body which controls the monetary system and without money no economy and no
business for survival (Manninen, Koskela and Aminoff, 2018). If all the factors of the economy
are favorable to the company as required, always it results in the growth of the company to the
extent of reaching a level of international trade. If the economy is unfavorable the business will
not grow rather it decease existing in the economy of a country. In studying the economics of a
business is useful to evaluate and analyze the micro-economic and macro-economic environment
of a business. This study will help the company to survive in the market (Larsson, 2018).
Introduction to the company
Every company in the economy belongs to the specific industry. In this report,
Woolworth’s Pvt Ltd will become the company under the study. This is a business group which
is mainly located in Australia operating under Woolworth's trademark. This group of business
has several segments of operation under the retailing industry like supermarkets and hospitality
services which offered through hotel and restaurants. The Company started its process 95 years
ago since it raised the initial capital in the year of 1924. In the Year of 1924, the company was
under the control of the following founders, Percy Christmas, Cecil Waine, Creed George, and
Williams Ernest. The headquarters of the company is located in Australia, New South Wales at
Bella Vista. The company is recognized as a public limited company under the retailing industry.