Impact of Shipping Prices on Trampoline's Profit: Microeconomics of Demand and Supply

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Table of content
 Introduction
 Trampoline's profit issues
 Microeconomics
 Concept of demand and supply in microeconomic
 Conclusion

INTRODUCTION
Business environment refers to the internal and external factors such as employees, needs of
customers, their expectations, supply and demand, suppliers, owners, government,
management, clients, social trends economic changes and so on. All these factors impact the
profits and business of an organisation whether directly and indirectly.
The presentation has highlighted the issues relating to the high transportation cost and port
congestions of the Trampoline. It will cover the basic understanding of the economic concept
and also discuss the demand and supply and market structure.

Trampoline's profit issues
An article has been released by BBC new on its webpage that is related to the issue of hiking in
the prices of shipping which leads to the high transportation cost of the trampoline, swings, and
climbing frames. This thing is known by the James Owen, the owner of the outdoor toys and
stated that the equipment's get more expensive. Thus, the trampoline prices increased by 40 -
50 % which may reduce the sales and profit of the organisation. Therefore, high transportation
cost may affect the company negatively and provides it unfavourable outcomes. The prices of
the 40 foot shipping container are hiked on the major routes.