Financial & Economic Literacy for Managers - Doc
18 Pages3695 Words43 Views
Added on 2020-09-17
Financial & Economic Literacy for Managers - Doc
Added on 2020-09-17
ShareRelated Documents
Financial and EconomicLiteracy for Managers
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Questions..........................................................................................................................................11. Business economics concepts of market structure, small and medium enterprises, growthstrategy and multinational corporations.................................................................................12. Concepts of demand and supply and monetary policy of Bank of England to UK housingmarket.....................................................................................................................................33. Macroeconomics indicators and UK's past trend in five years...........................................44. Concepts of leverage and current account management....................................................65. A) Financial ratios..............................................................................................................7B) Present value......................................................................................................................8C) Net Present Value..............................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONEconomics and finance plays crucial role in the company. Present report deals withimportance of business economics concepts and theories and Conron shop is taken which issituated at Marylebone and is local high street store. Moreover, financial ratios of Tesco Plc iscalculated for two years. Thus, various theories and economic concepts are quite essential forinjecting overall economic growth in effective manner. Questions1. Business economics concepts of market structure, small and medium enterprises, growthstrategy and multinational corporationsThe economic concepts are as follows-Market structureThe market is the place where buyer and seller meet for exchanging particularcommodity often by paying price of the same. There are various market structure such as perfectcompetition market, oligopoly, monopoly and monopolistic competition. In relation to this,various theories can be explained such as neoclassical and modern theory. Neoclassical theorystates that customer attains satisfaction level when he gets commodity as per his choice. Insimple words, consumer demand and preferences are the main aspects by which demand andsupply of goods and services is affected. Customer needs affects supply and demand of productsquite effectually (Zietlow and et.al, 2018). Thus, neoclassical theory focuses on consumer buyingbehaviour which affects demand and supply simultaneously. On the other hand, modern theory is also relevant to market structure. The theory statesthat macroeconomic elements affects firm quite effectively. Conron shop located in Maryleboneis directly affected by aspects such as income and buying pattern or behaviour of customers,preferences of people and as such, this also influences economy of UK. When purchasing powerof customers are high, then nation and firms are benefited with much ease. Thus, it can be saidthat demand and supply in the market is affected by customer needs. Market structure means that it is nature of competition prevailing in the market andpricing policy followed by different markets such as perfect competition market, oligopoly,monopoly and monopolistic competition.1
Small and Medium Enterprises (SME)SME are helpful for the nation as they increase GDP (Gross Domestic Product) in thebest possible manner. SME fosters growth and development in the country which automaticallymaximises economy with much ease. SME are generally small organisations having less than 50employees but help to foster growth of the nation quite effectively. With regards to this, twotheories such as Economic Change by Nelson and Winter and other one OrganisationEquilibrium Theory by Barnard-Simon can be explained in this context. Economic Changetheory states that in order to gain market share ahead of competitors, business should implementeffective and better strategies. This is required so that customer base may be broaden in the bestpossible way and business may achieve growth and profits with much ease (Allgood andWalstad, 2016). Furthermore, Organisation Equilibrium is mainly focused on employees who work for theorganisation. This theory implies thatemployees in SME are regarded as participants and assuch, being small size of firm, they are important integral part of organisation. They initiate workand contributes benefits to organisation and as such, in return firm pays for the same. It can besaid that employees are main asset of SME to achieve set targets.YearSME Turnover(£'000s)201779177134220167119346252015669333844201462263027220135658241672012562897805201155234555020105898711482
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Financial and Economic Literacy for Managers : Reportlg...
|16
|3773
|33
Financial Economic Literacy for Managers Assignmentlg...
|13
|3442
|77
Financial & Economic Literacy for Managers Reportlg...
|11
|3304
|75
Financial and Economics Literacy for Managers Assignmentlg...
|13
|3351
|53
(Solved) Financial and Economic Literacy for Managers - Assignmentlg...
|20
|4304
|25
Economic Concepts and Models: An Article Reviewlg...
|14
|688
|252