Financial and Economic Literacy for Managers
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GSM distinctive higher education London
Financial and Economic Literacy for Managers (FELM4026)
Added on 2020-05-11
Financial and Economic Literacy for Managers
GSM distinctive higher education London
Financial and Economic Literacy for Managers (FELM4026)
Added on 2020-05-11
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Running head: FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSFinancial and Economic Literacy for ManagersName of the StudentName of the UniversityAuthors NoteCourse ID
1FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSTable of ContentsAnswer 1:.........................................................................................................................................2Introduction..................................................................................................................................2Economic overview of the Company..........................................................................................2Answer 2:.........................................................................................................................................6Introduction..................................................................................................................................6Potato Price Index........................................................................................................................6Answer 3:.........................................................................................................................................8Introduction:................................................................................................................................8Policies taken by UK for economic prosperity:...........................................................................8Answer to question 4:....................................................................................................................12Answer to 5:...................................................................................................................................13Answer to question 6:....................................................................................................................14Answer to 6A:................................................................................................................................14Answer to 6B:................................................................................................................................17Answer to question 6C:.................................................................................................................17References:....................................................................................................................................18
2FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSAnswer 1: Introduction The Amazon.com, Inc., with headquarter in Seattle Washington, is one of the pioneersand predominant players in the global e-commerce and cloud computing industry. Theenterprise, founded in 1994, is the largest online retailer in the global market and enjoys highestmarket capitalization. With more than 341.400 employees all over the world, the companyenjoys mean revenue of $135.98 billion (as in year 2016) and shows a continually increasingarea of operations and consistent increasing trend in revenue generations, barring several discretefluctuations due to exogenous and endogenous reasons (Amazon.com, 2017). The report tries toshed light on their overall performance using the relevant industrial economic and businessconcepts. Economic overview of the Company The business model of the Amazon and its operational framework are examples ofimmense success in the contemporary business world and are extensively studied and takeninspiration from. According to the structure-conduct-performance paradigm, one of the widely usedbusiness economic concept, the performance of any commercial enterprise heavily depends onthe overall conduct and behavioral pattern of the demand and the supply side players. This in itsturn is determined by the structure of the industry under the domain of which the enterprise isoperating (DaSilva and Trkman 2014). Amazon operates in the global e-commerce market,which is comparatively new in existence and has gained significant pace the recent years withthe innovations in technology and increase in the usage of internet among common people, all
3FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSover the world. A lot of the expansion of this industry can be attributed to the phenomenon ofGlobalization, which has immense significance in easing global commerce and making thetrading practices of the countries more inclusive. The e-commerce market, had only a fewplayers until recent times and these players enjoyed significant market shares thereby creating anoligopoly like structure in the market. Amazon being one of the forerunners in this industry, has been the largest of all the e-commerce giants and has continually expanded in terms of areas of operations, goods andservices offered and expansion of clientele (Ritala, Golnam and Wegmann 2014). The organizational structure of the enterprise has several key features, which havecontributed significantly in the impressive performance trends of the Company. The mostsignificant feature among these is the global function-based group of the company. The companyhas a dedicated team for each of its function, which has helped in the proper division of labourand production augmenting specialization. Other implicative features include a globalhierarchical structure and geographic divisions of the operations of the firm, which have helpedin better management of its huge operational range across the world (Jell 2012). The conducts or the behavioral trends of the consumers and the company itself,determined by its structure, also have implications on the same. The company has invested inbuilding up the goodwill factor in the market as trust is an important yardstick in the industry inwhich they operate. Due to the timely and trustworthy services of the company, the company hasbeen able to reach the op most global service providers’ list in terms of reputation:
4FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSFigure 1: Global leaders in the different dimensions of reputation(Source: Klaus 2013)As can be seen from the above figure, the company has excelled in terms of products andservices, which they offer, and also in emotional appeal, thereby indicating that they enjoy asignificant base of loyal clientele earned due to its customized and trustworthy updated services.These in turn play an important role in the image building and future prospects expansion of theenterprise. These behavioral trends of the clientele and the company itself are reflected on theperformance of the company:
5FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSFigure 2: Revenue of Amazon over the years(Source: Recode.net, 2017)As is evident from the above figure, the company has experienced a continuous andimpressive increase in revenue generation in spite of the entry of many new players in the supplyside of the industry. Much of this can be attributed to the efficient business strategies of thecompany and the loyalty enjoyed by the enterprise on part of the consumers over the years.
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