Management Economics: Analysis of Ferrari's Market Structure

Management
Economics

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Description of the company, its products, services and history..............................................1
2. Analysis of the market in which the organisation is operating ever since its inception..........2
3. The company operated different market structure in the history or not..................................3
4. a. Review regarding operating in a different market structure will be optimal for the
organisation..................................................................................................................................3
4. b. Suggestion related to lesser and greater government intervention......................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management economics is the term which is focused with the management of different
types of resources, incomes, expenses, finance, community and the entity. While planning to
develop the business it is very important to pay attention towards it. If the organisation that are
planning to grow the business are focused with development of economy then it can help them to
meet all the long-term goals and objectives (Alkhudary, Brusset and Fenies, 2020). The
organisation which is selected for this report is Ferrari which is an Italian sport car engineering
company and it is operating business all around the world. It was founded in year 1939 and the
person who founded it was Enzo Ferrari. This assignment covers various topics such as overview
of the enterprise, analysis of the market in which the entity is operating business and different
market structure in which company had operated. Apart from this, assessment of operating
business in different market structure and suggestion regarding lesser or greater governmental
intervention are also covered in this assignment.
MAIN BODY
1. Description of the company, its products, services and history
Overview of the company: Ferrari is an automobile manufacturer which is selling all its
products all around the world. It was founded by Enzo Ferrari in year 1939. It is an Italian
company but it is having headquarters in different countries such as Amsterdam, Netherlands and
Maranello, Emilia Romagna, Italy. The area which is served by it is world wide and according to
a report in year 2017 it has generated profit of almost 537 million euros. Current owner of the
company is Exor N. V., Piero Ferrari and Public. Total number of employees of the organisation
is more than 3300. There are various subsidiaries of the entity which are Ferrari S.p.A. and
Scuderia Ferrari S.p.A(Overview of Ferrari, 2020).
History of the company: Ferrari company was founded in year 1939 and the founder
Enzo Ferrari was not interested in manufacturing road cars when the idea of Scuderia Ferrari was
formulated in year 1929. During the year the headquarter was in Modena. In year 1940 a racing
car was produced by Ferrari which was Tipo 815 which was based on the flat platform. The car
was very successful but due to world war 2 it faced hue competition. With the time the company
became one of the most luxurious brands of sports cars and now the cars that are manufactured
by Ferrari are highly in demand and the prices of them is also very high.
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