Factors Influencing Demand and Price Elasticity of Tesco Plc

Management Economics-1

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Overview of Selected Company and its products & services..................................................1
2. Identify factors which influence the demand and evaluate that factors indicate that demand
increases or decreases..................................................................................................................3
3. Factors that influence the Price Elasticity of Demand and describe that how selected
products & services affected........................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Management economics perform with applying economic principles, assumptions, methods,
and techniques to address realistic market problems (Aini, 2019). Management economics, in
many other terms, is the synthesis of economic principles and management theory. It allows the
managers to make effective decision and take necessary actions to make connection between
theory and practices. It might be known as a business economy, and is an environmental branch
that relates micro-economic assessment to corporate decision methodologies and perhaps other
staff attitudes. Organizations need to understand the market situations and it further affect the
demand of their products & services, so managers need to evaluate market effectively and ensure
that taken actions will helps in maximising overall product demand. For this, organization needs
to understand economic principles and theories for better strategic decisions.
Tesco Plc is selected for this assignment which is UK based retail sector organization and its
headquartering based on Welwyn Garden City and it was founded in 1919. This assessment
covers several topics such as description of company along with the products & services which
they offer. In addition, factors which influence the overall demand of consumers and leads to
increase or decrease the overall demand. Along with it, it includes the substitution effects on
product demand along with pricing policies which can be followed by the organizations.
MAIN BODY
1. Overview of Selected Company and its products & services
Tesco plc investing in stock market as Tesco, which is a multinational British grocery store
and retail businesses with headquartered in London, England, UK. This organization is globe's
3rd largest store that measured by gross sales and the world's 9th largest according to sales. It has
outlets in 7 nations throughout Europe and Asia and is the industry leader in grocery stores in the
UK (market share of almost 28.4 per cent), Ireland, Hungary and Thailand. Jack Cohen
established Tesco as a collection of street markets in Hackney, London, in 1919. The brand of
Tesco first emerged in 1924, when Cohen had bought a delivery of tea from T.E.
Stockwell then merged to those initials with their surname's initial two letters, and the very
first shop of Tesco opened in Burnt Oak, Barnet, in 1931. His business grew exponentially, with
over 100 Tesco stores around the nation by 1939 (Ainslie, 2016). Since before the early 1990s
Tesco expanded internationally with operational activities in 11 other major countries. The
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