FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS Financial and Economic Literacy for Managers University Name Student Name

Running head: FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS
Financial and Economic Literacy for Managers
University Name
Student Name
Authors’ Note

2
FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS
Table of Contents
Solution to Question 1:...............................................................................................................2
Answer to Question 2:................................................................................................................6
Answer to Question 3:................................................................................................................9
Answer to Question 4:..............................................................................................................11
Answer to Question 5:..............................................................................................................12
Answer to Question 6 (a):........................................................................................................14
Answer to Question 6 (b):........................................................................................................15
Answer to Question 6 (c):........................................................................................................16
References................................................................................................................................17

3
FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS
Solution to Assignment Question 1:
Structure-conduct performance paradigm for amazon.com
As rightly indicated by Disney and Gathergood (2013), the structure-conduct-performance
paradigm was first introduced by economist Edward Chamberlin as well as Joan Robinson
during the year 1993 and was designed by Joe S. Bain as a model in Industrial Organization
Economics. This delivers a causal theoretical explanation for performance of firm by means
of economic conduct on unfinished markets. As per the structure-conduct-performance
paradigm, the setting of the market essentially has a direct as well as short term influence on
market framework. In particular, the market framework has a direct impact on corporation’s
economic conduct that in turn affects the performance of the market. Essentially, in that
feedback effects take place (Disney and Gathergood 2013). As such market performance
might influence conduct and framework and conduct might perhaps affect the overall
structure of the market. Furthermore, external facets namely legal or else political
interventions have an effect on market structure and by extension, the framework, conduct as
well as market performance.
Analysis of the elements of the paradigm:
Structure: Refers to an entire set of variables that are considerably stable and can affect
behaviour of both purchasers as well as sellers.
Conduct: Indicates towards the way in which purchasers as well as sellers behave both among
themselves as well as amongst one another (Bay et al. 2014)
Performance: Enumerated by relative comparison of results of corporation along the industry
in terms of efficacy. Fundamentally, diverse ratio can be utilized for assessment of levels of
profitability.

4
FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS
The structure-conduct-performance paradigm indicates towards examination of setting of the
market. Analysis of operations of Amazon.com Company reflects the fact that Amazon is a
leading online retailer of the world that has global footprint. In essence, Amazon has the
ability to leverage numerous opportunities in diverse emerging markets. The management can
also make certain that supply chain of diverse networked warehouses can deliver
considerable value both for itself as well as for its stakeholders (Bay et al. 2014). However,
Amazon’s economic performance also relies to a huge extent on circumstances of the
economies in which it runs its online retail business. For example, the economic stability of
majority of developed markets can be considered as an opportunity that the company enjoys
for increasing the propensity of success for the company (Drexler et al. 2014).
Fundamentally, in this type of market conditions can minimize diverse economic issues in
various remote or else macro-environment thereby might perhaps minimize the overall risks
to the online business expansion of the company Amazon. Again, increase in disposable
earnings in different developing nations can also be considered as an opportunity for the
corporation. For instance, the augmentation of the disposable earning in different developing