Finance and Economic Literacy

Running head: FINANCE AND ECONOMIC LITERACY
Finance and Economic Literacy
Name of the Student
Name of the University
Authors Note
Course ID

1FINANCE AND ECONOMIC LITERACY
Table of Contents
Answer to question 1..................................................................................................................3
Introduction................................................................................................................................3
Co-op food.................................................................................................................................3
Marketing strategy of Co-op food..............................................................................................3
Conclusion..................................................................................................................................4
Answer to question 2..................................................................................................................5
Introduction................................................................................................................................5
Housing demand and housing supply in United Kingdom........................................................5
Bank of England’s policy for UK housing market.....................................................................6
Conclusion..................................................................................................................................7
Answer to question 3..................................................................................................................7
Introduction................................................................................................................................7
Gross domestic product..............................................................................................................7
Inflation......................................................................................................................................8
Interest rate.................................................................................................................................9
Unemployment.........................................................................................................................10
Conclusion................................................................................................................................11
Answer to question 4:...............................................................................................................11
Answer to question 5:...............................................................................................................12
Answer to A:............................................................................................................................12

2FINANCE AND ECONOMIC LITERACY
Answer to B:............................................................................................................................14
Answer to C:............................................................................................................................14
Reference List:.........................................................................................................................16

3FINANCE AND ECONOMIC LITERACY
Answer to question 1
Introduction
In UK economy, several business operates successfully positive contribution to
economic growth. The grocery supermarket is one of the widely extended business in UK.
Different sized firms operate in the supermarket chain. The report evaluates business strategy
of Co-op food, one of the grocery retailers in UK.
Co-op food
Co-op Food is a retail grocery brand operated by co-operative group in UK. In 2016,
the company accounted about 6.6% share of grocery market. Despite fall in co-operative
society’s market share from a peak of 30% in 1950 to 6.6% today, it still ranks fifth in the list
of grocery retailers in UK (co-operativefood.co.uk 2018).
The company operates in an oligopolistic market structure. A market is identified as
an oligopoly market when a market with large number of buyers is dominated by only few
large firms (Sloman and Jones 2017). The four dominating players in UK grocery
supermarket are Tesco, Morrison, Sainsbury and Asda.
Marketing strategy of Co-op food
In an oligopoly market, the operating firms take several strategies to capture a higher
market share by undercutting share of its rival. Some of the commonly used strategy
oligopolistic firms include product differentiation, advertising, price war and other specific
strategies (Ashwin, Taylor and Mankiw 2016). Co-op Food has taken some of these strategies
to retain its position in the market.
The company has made a gradual shift towards becoming one of the leading
convenience food retailers in UK. In order to achieve this the company has planned to double