Management Economics

Management Economics

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Historical background of B&Q with overview on its products or services.............................1
2. Market analysis of B&Q to explore its competitive image in retail industry..........................1
3. Market structure of B&Q.........................................................................................................4
4 a) Critical discussion on different types market structure including optimal structure for
B&Q.............................................................................................................................................6
4b) Key discussion on interferences of lesser or greater government interventions on B&Q
operations.....................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
In today’s business environment, managerial economics refers to one of the main concept
that helps in keeping track of benefits and getting idea of opportunity cost to run operations
profitably. It plays a vital role in companies, in determining success or failure of their businesses
(Adams and Williams, 2019). A study is conducted on retail industry to understand importance
of economic management in firms, by taking case study of Block & Quayle (B&Q) Limited.
Exploring its historical background aid in analysing its market position and journey it has taken
to achieve the same. In addition, in which market structure chosen company is operating its
business, with key suggestions to switch is also being made. Furthermore, discussion is also
made on analysing the interference of government intervention on its operations.
MAIN BODY
1. Historical background of B&Q with overview on its products or services
Retail industry plays a crucial role in developing economy of a nation, where in 2018, it
has generated worth sales of £381 billion. It has also given a range of employment opportunities
to both highly and less skilled people, which lead further to society development also (Loury-
Okoumba and Mafini, 2018). B&Q is one of the perfect example of retail industry, which is a
subsidiary of retailing giant firm – Kingfisher Plc. It offers a range of 40,000 home improvement
DIY products, gardening supplies and plants on competitive price rates (Gong, Liu and Zhu,
2019). It has founded 51 years before i.e. in 1969 by Richard Block and David Quayle in
Hampshire, UK. Currently, it has more than 330 retail stores across the UK and Ireland, which
includes large warehouses as well as small super centres. In overseas market, where B&Q
operates its business includes China with 40 stores, including the biggest stores of the world in
Beijing. On these stores, it also offers tools, insulation, lumber and other building repairing
products, including home décor items also, like flooring, paint, wallpaper and hardware.
2. Market analysis of B&Q to explore its competitive image in retail industry
Block & Quayle is one of the leading brand in retail industry of UK where, its market size
is almost twice of its competitor, i.e. approx. £31bn near about 14% of total market share. This
share includes size of repair, improvement and maintenance home products (Verma, Malhotra
and Singh, 2020). Having the highest position in UK era, B&Q has always ahead of its rivals.
Along with this, it has strong reputation that aid in attracting and retaining loyal customers
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