Business Environment: Impact of Trampoline Price Increase on Global Operations

This presentation discusses the impact of trampoline price increase on global operations. It applies microeconomic frameworks to the difficulties by employing the demand and supply concepts. The demand and supply of trampolines are discussed in detail, along with the factors affecting them. The presentation also covers the elasticity in demand and the law of supply.

Business Environment

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The business environment is the sum of all the components that are external to
management organisations and have an impact on management's global operations. There are a
variety of challengers, including the government, customers, suppliers, and cultural factors. It is
based on events that occur in the field of economics. As a result, demand and supply are critical
words for the market, and their efficacy contributes to profitability. The following presentation
discusses the trampoline scenario as well as other difficulties related to the global trampoline
price increase. This specific presentation applies microeconomic frameworks to the difficulties
by employing the demand and supply concepts.
MAIN BODY
Trampoline's profit Issues
According to BBC news, transportation costs are rising, causing the global price of
trampolines to rise, and one of the sports wholesalers is getting famous for it. According to
Owen, an outdoor toy owner, there are significant disparities in transportation costs and port
congestion, which may be increasing for larger toys and such as frames and trampolines, which
are becoming more expensive for those who are unable to afford them. Toy stores are more
susceptible to worldwide revenue and profitability fluctuations. According to the study,
trampoline prices are rising by 45 percent each day, causing a slew of issues, which Mr. Owner
is working to resolve. According to the article, the cost of a trampoline is increasing by 45
percent every day, causing a slew of complications, and Mr. Owner stated that they might not be
able to get the extra space out of China. Because certain products are becoming more popular in
the United Kingdom, maximising shipping value will have an impact on management's global
operations. It has been noted that the see for the first time weighs the global pricing of the
products.
Concepts in Microeconomics
The requirement for a person to acquire items and services is defined as having enough
purchasing power to buy specific commodities and other components that remain constant.
Because the costs and quantity demand of products and facilities are inversely related, the period
of cost that is present the items that maximise the needs of presented products will be low, or
vice versa. According to the offered article, the demand for Chinese items is typically increasing

around global aspects in the present moment, as well as analyses that present transportation
capacity.
Law of Demand, As a result, the costs and quantity of products and facilities have an inverse
relationship. There are several aspects in the market that have similar portions, as well as specific
terms of methods. There are various factors that will influence the demand for trampolines,
including the following:
 Price of the commodity – Customers are willing to buy the offered products and
facilities in order to obtain effective goods because there is an inverse relationship
between the cost and amount of demand for the presented products. Purchasers are
always on the lookout for lower-cost things so that they can acquire a larger quantity of
products for the same price. In the case of trampolines, the costs are increasing on a
regular basis, and it is known that the costing of a 40 foot container is done three times a
year, according to Drewry's initiative. When the cost of a trampoline rises, so does the
demand for trampolines.
 Income of the consumer - It is defined as the expressed value of beneficial interactions
between consumer demand and income. When a customer's source of money rises, so

does demand for specific items and services, or vice versa. Individuals have effective
income levels in respect to the trampoline in the United Kingdom, which allows them to
make effective market choices based on their income section.
 Price of related goods – In general, there are two types of linked products that are
complimentary and are used, as well as having an impact on the sale of trade goods. In
regard to supplementary items, such as the specific characteristics that may not be
separately utilised and operate in accordance with the goods' supported role, and so on.
 Taste an preferences of the customers – Because there are various factors that might
influence a consumer's choice and preference, as well as cause a buyer to purchase more
or less of a product or service. When it comes to trampolines, when a person chooses or
associates with a product, the global demand for that product will increase, and vice
versa.
Elasticity in Demand
It's also known as demand curve variations, which refers to a movement in the global
demand curve to the right or left, depending on specific circumstances such as income, product
costs, and buyer preferences..
The demand curve will depict a decrement in the demand curve when it moves from D0 to D1,
as shown in the above graphic, by maximising the Trampoline's cost. On the other hand, when

the demand curve shifts from D0 to D2, the demand for trampolines is maximised due to a
decrease in the cost.
SUPPLY: The primary aspect that analyses the entire available number for a certain
commodity to its purchaser is referred to as supply. It is also linked to the number at the given
price by which they can ensure great proficiency in the market.
Law of supply -
It determines that there is a positive relationship between the offered cost and the amount
of goods available. Assuming that all other factors remain constant, when the cost of specific
commodities reaches its maximum, the quantity supply of current items reaches its maximum, as
the manufacturer sells more things. Lower product costs, on the other hand, tend to raise the
global term of supply of commodities in larger markets. In the case of trampolines, if the cost
rises, so does the supply of such products, and vice versa.
According to the above graphic, the supply curve has a decreasing slope due to positive
interactions between supply and cost of the offered products. When product costs rise from P3 to
P2, supply rises from Q3 to Q2, resulting in a rise in trampoline prices in the marketplace.
Factors affecting supply of the certain products are discussed below -
 Costs of production – When the management has enough raw materials or pays their
employees a reasonable rate, they can give any quantity to their customers. In the case of

the trampoline, if the trampoline producer has enough raw material, their global supply of
products will increase, or vice versa.
 Government Subsidies - It refers to the benefits that the government offers in order to
lower the worldwide price of production. It is inextricably tied to the cost of subsidies
and the availability of the products on offer. When the cost of government subsidies rises,
the worldwide supply of goods rises as well, resulting in a larger term of demand in the
marketplace. When it comes to trampolines, when the government offers large subsidies,
the global supply of products will also increase.
 Technology – It has to do with technological advancements and innovation, as well as the
management's ability to reduce the cost of operation. It is commonly referred as the
requirement for each management to enhance their automation in order to remain
competitive in the marketplace for a longer length of time.
Change in Supply Curve:
The shift in the supply curve is defined as differences in numerous aspects such as cost of
production, government subsidies, technology, and company goals. When the supply of
trampolines reaches its maximum, the supply curve shifts from S0 to S1, and the supply of
products decreases, shifting from S0 to S2.

According to the diagram above, as product costs rise, the supply of available products
rises as well. On the other hand, when the cost of a trampoline reaches its maximum, the supply
curve shifts from S0 to S1 and the cost falls, causing the supply curve to change from S0 to S1.

CONCLUSION
According to the above presentation, increasing the cost of trampolines will have an
impact on worldwide supply and profitability. The global market case is presented by two
frameworks: demand and supply, and demand and supply elasticity. As there are certain sections
that effect global demand and supply, such as commodity costs and purchaser income.

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