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Financial and Economic Literacy for Managers

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GSM distinctive higher education London

   

Financial and Economic Literacy for Managers (FELM4026)

   

Added on  2020-04-21

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FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS 1 FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS Financial and Economic Literacy for Managers Author’s Note: Course ID: Answer to Question 1: 2 Answer to Question 2: 2 Answer to Question 3: 2 Answer to Question 4: 2 Answer to Question 5: 2 Answer to Question 6: 2 Answer to Part A: 2 Answer to Part B: 2 Answer to Part C: 2 References: 3 Answer to Question 1: The Structure, Conduct

Financial and Economic Literacy for Managers

   

GSM distinctive higher education London

   

Financial and Economic Literacy for Managers (FELM4026)

   Added on 2020-04-21

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Running head: FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSFinancial and Economic Literacy for ManagersName of the Student:Name of the University:Author’s Note:Course ID:
Financial and Economic Literacy for Managers_1
1FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSTable of ContentsAnswer to Question 1:.....................................................................................................................2Answer to Question 2:.....................................................................................................................2Answer to Question 3:.....................................................................................................................2Answer to Question 4:.....................................................................................................................2Answer to Question 5:.....................................................................................................................2Answer to Question 6:.....................................................................................................................2Answer to Part A:........................................................................................................................2Answer to Part B:.........................................................................................................................2Answer to Part C:.........................................................................................................................2References:......................................................................................................................................3
Financial and Economic Literacy for Managers_2
2FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSAnswer to Question 1:The Structure, Conduct and Performance Paradigm: The Structure, Conduct and Performance Paradigm is one of the most useful analyticaltool for interpreting and analyzing the relationship between the market structure, the conduct inthe market and the performance of the market of an economy. In contemporary global economy,it is important to evaluate the performance of the industries, to analyze the performance of thesame industry in the economy and in this context, this paradigm becomes considerably effectivein evaluation and control of the concerned business and its management (Jell 2012). The report, with reference to the above discussion, tries to evaluate the structure, conductand the performance of the global corporate giant, Amazon, in the following sections. Structure Though perfect competition, as a theory, exists in the economic concepts, however, thisconcept is hypothetical and in reality perfectly competitive market does not exist. In reality, theoperations of a market depends on several factors, like the demand and the supplyconcentrations, the differentiation of the product in the concerned market and the barriers presentin entry in the market and exit from the market. The structure of a market is also attributed to thenature of the product and the production mechanisms, along with the technologies involved(Rothaermel 2015). Amazon is one of the largest and predominant global online retailer, with most of thecommodities being sold online as well as in the local markets. The objective of the enterprise isto increase the convenience of the customers, in terms of the overall way of living and
Financial and Economic Literacy for Managers_3
3FINANCIAL AND ECONOMIC LITERACY FOR MANAGERSentertainment. Though, in the contemporary period, with the entry of some other companies inthis industry, Amazon operates in oligopolistic market structure, however, it has its own brandrecognition. The enterprise has considerable price decisive powers for its goods and services(Varia and Mathew 2014). Amazon engages in aggressive minimising pricing strategy to increase their clientele, onesuch example being the selling approaches they take during the holidays special occasions, withthe concerned products being mainly gift products. Amazon, with time, has been facingincreased competition in the global framework and their competitors are no longer restricted toGoldman Sachs, Wal-Mart and others. However, the company enjoys a huge comparativeadvantage, especially in terms of electronic products, due to the robust pricing strategies of thecompany and the quality of products sold by them (Carvalho 2015). Conduct The enterprise has an efficient operational framework of strategy designing, investmentbehaviour, research and development and promotional activities. It also indulges in collusions asand when required. In the economy of the USA, the consumers have access to more informationregarding markets and the companies. In addition to this, increased number of competitors andlow cost of switching make competition more adverse. This is because the customers can choosefrom a wide range of substitutes (Ralston et al. 2015). Performance To gauge the performance of organization and their profitability, the product quality, price,allocation efficiency and other parameters. Amazon, as a global enterprise, in 2016, earned $136million in net sales and the company saw a growth of 25% in sales in 2016 from 2015. There has
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