Management Economics - Ferrari: Business Overview, Products & Services, and Factors Influencing Demand

MANAGEMENT ECONOMICS - 1

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Define the selected business and its products & services range..............................................1
2. Describe the factors which influence the demand...................................................................2
3. Factors that influence the Price Elasticity of Demand.............................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management economics can be described as the implementation of various forms of
economic theories and principles that really can help to solve many of the problems that even an
entity is struggling with (Agyapong, Ellis and Domeher, 2016). When aiming to achieve
such long-term business targets, it would be really essential for all organisations to ensure that
they concentrate on economic proposals and resources because it will help identify the right
approach for all market problems. Effective implementation of management economics provide
the growth and business development which can be acquired. Ferrari Company selected for the
better understanding of this management economic concepts. It was established in 1939 by Enzo
Ferrari and it is automobile sector organization. Headquarter of selected organization based on
the Italy and this brand comes under the one of luxury sports car manufacturing organization.
This assessment covers several topics such as overview of organization along with its
products & services, background, market research where it operates, and analysis of whether or
not the organization had functioned under different market sector. Besides that, there are several
factors influencing demand and how the price of demand elasticity affected.
MAIN BODY
1. Define the selected business and its products & services range
Overview of Company:
Ferrari is an international Italian manufacturer of luxury sports cars based at Maranello,
Italy. Established in 1939 by Enzo Ferrari as Auto Avio Costruzioni out of Alfa Romeo's race
division, the organization manufactures its first vehicle in 1940. Even so, the corporation's
founding as an automaker is usually acknowledged in 1947 when the very first Ferrari badged
car has been finished (Ferrari S.p.A, 2020). Fiat S.p.A. bought 50 per cent shares of Ferrari in
1969 and raised its interest to 90 per cent in 1988. Fiat Chrysler Vehicles N.V. in October 2014.
(FCA) declared its plan to split Ferrari S.p.A. from FCA; FCA owned 90 per cent of Ferrari as of
the declaration.
The division began with a consolidation in October 2015 which formed Ferrari N.V. (A
firm incorporated in the Netherlands) as that of the new standing steady of the Ferrari group and
eventual selling by FCA of 10% of the securities in the IPO and corresponding listing of ordinary
stock on the (NYSE) New York Stock Exchange. The organization has been notable during its
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