Financial & Economics Literacy for Managers Assignment
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Added on 2020-07-23
Financial & Economics Literacy for Managers Assignment
Added on 2020-07-23
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Financial and Economics Literacy forManagers
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK ..............................................................................................................................................11 ..................................................................................................................................................12...................................................................................................................................................33. .................................................................................................................................................44. .................................................................................................................................................55...................................................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONEconomy is the macroeconomic term which is assessed by economists in order to knowthe actual conditions in an effective manner. Any country's economy totally depends upon theperformance of organisations which carry out their business operations effectively. However,this can be said that the organisation needs to carry out their operations in an effective manner.Today's world full of competition which totally relied upon the performance of an organisation.Here, capital investment appraisal techniques are used under this report.TASK 1 Market structure is the one which refers to the entire market the where the company isengaged their operation. Basically, this can be said that in general, the market consists of thecharacteristics of the market either firm or competitive, which elaborates the nature ofcompetition and pricing policies which are followed in the market (Smit and Watkins, 2012).Henceforth, market structure is said to be the one which producing an identical goods andservices in the market and whose structure which is identified on relying the competitionprevailing in that market.Market means to the place where sellers and buyers which satiate the selling and buyingof goods and services. Various kinds of market structures are defined hereunder:Monopolistic Competition: As per Monopolistic Competition, there are large number oforganisations which render differentiated products with close substitutes for each other. On theother hand, higher sellers the products which are same, but not identical and compete along witheach other on other factors besides price.Basic characteristics of Monopolistic market:Product Differentiation: It is the key feature of organisation which operates undermonopolistic competition which is manufacturing goods that are not identical but on the otherhand.Large Number of Firms: Higher number of organisations operate as per the monopolisticcompetition and there is an intense market competition between the existing operations.Free entry and exit: With the strong competition among the firms, the organisation isincurring loss which could move out of the industry during any time it wants. Same, the new1
firms could enter into the industry freely, provided this emerge with the unique feature anddiverse kinds of products to out-stand in the unique feature and diverse variety of goods to out-stand in the market and meet the competition already existing in the industry. Conversely, byenhancement in the product price, this would lose its customers to others.Perfect Competition: This is the market structure where vast buyers and sellers areexisting and entire market is committed in purchasing and selling of the similar products at asingle price prevailing in the market. In other words, perfect competition have as a highercompetition, which exists during the time where there is no direct competition between therivals. Under this market, quantity of the buyers are more as compare to other market situation.Oligopoly Market: This is characterised by the few sellers, selling similar ordifferentiated products. On the other hand, Oligopoly market structure lies in between themonopoly and the monopolistic competition where few of the sellers reflect the market and havea strong control over the price of the goods.Monopoly Market: This is the market structure which is reflected by the single seller,selling a unique good with the restriction for a new organisation to enter the market. Commonly,monopoly is a kind of market where the seller is only one which offers the particular commodityfor which there are no close substitutes.Small and medium enterprises: Small and medium enterprises are the one whichultimately help the economy in boosting their GDP. SMEs' are the important components forenahncing the contribution for the market. as on average, they contains over 95% of theorganisation and this also employed 65%-70% of the total labour force. Further, SMEs aredrivers of the economic development and innovation. In addition to this, SMEs are the driver ofeconomic growth and innovation which ultimately help the organisation in order to grow thebusiness in an effective manner (Current Account, 2018). In the UK economy, SMEs play a vastrole for contributing the annual return in an effective manner. In the UK local market, there arevarious small shops which sell their products at a cheaper price than the branded goods justbecause of the locality of the product.Multinational companies: These are various organisations which have their operationsall around the globe which simply means that they have strong positions for operating businessin an effective manner. However, this can be said that multinational organisations made their2
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