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The Importance of Financial Literacy in Business

   

Added on  2020-11-12

15 Pages3335 Words112 Views
FINANCIAL AND ECONOMICLITERACY FOR MANAGERS

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. Business economics concepts of structure-conduct-performance paradigm, growth strategyand globalisation.....................................................................................................................12. Concepts of demand and supply, consumer behaviour, and opportunity cost to consumerdemand for a normal good......................................................................................................33. Concepts of environmental policy, fiscal policy, supply side policies to seek economicprosperity for UK...................................................................................................................54. Concepts of financial intermediation, financial instruments and risk and return to obtainfinancing for its operations and invest its profits...................................................................85. a. Ratio analysis of Sainsbury............................................................................................9b. How much money does Alice need to deposit today to accomplish her goal....................9c. Two projects are mutually exclusive and have the following projected cash flows:.........9CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONFinancial learning is very important for all managers as it provides guidance to analyseappropriate budget for business activities in achieving goals and objectives of a company (Barrand McClellan, 2018). Economic literacy is equally essential to understand every policy that isrelated to trade and an organization must comply with these regulations.This report includes business economics concepts for growth strategy, demand andsupply, consumer behaviour and opportunity cost to consumer demands for normal goods andseveral policies that can affect commercial activities.TASK1. Business economics concepts of structure-conduct-performance paradigm, growth strategyand globalisationStructure-conduct-performance paradigm (SCP) - It is regarded as an analyticalframework, which facilitates Toyota company to work in accordance to structure, conduct andperformance in market (Schaeck and Cihák, 2014). It is the pillar for analysing various marketsand associated industries. Performance of industry can be easily determined by using this theorythat can be proved beneficial for this firm.There are many elements in this paradigm which are as follows:1

Structure- These are known as set of variables, which can affect the behaviour ofproduct sellers or customers. It provides reason for market failure in serving conditions related toperfect competition.Conduct- It states the ways related to actions by sellers and buyers. This facilitatesToyota to formulate strategies, which can influence their reactions. Paradigm- It is used for conducting comparisons of the outcomes of a company on termsof efficiency and ratios, which are required for assessing several levels of profitability.Growth Strategy- This concept helps a firm to grow in every aspect, which is importantfor survival in the market because there are many other competitors who can create potentialthreat for existence. Following are the strategies, which are adopted by Toyota recently for growing their business:Product Expansion- Standardization of Toyota will connect the car technology acrossevery available vehicle by 2019. They are focusing on deployment of new Toyota products aswell as Lexus automobile in many countries around the world. It is required by every company2Illustration 1: Element of Paradigm(Source: Structure, conduct, performance, 2018)

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