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Understanding Economics for Built Environment

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Added on  2020-02-03

Understanding Economics for Built Environment

   Added on 2020-02-03

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Applied Economics for BuiltEnvironment [Essay]
Understanding Economics for Built Environment_1
Economics play very important role in understanding environment and market situationswhich is beneficial for every organization at the time of running business operations in direct andindirect manner. There are number of economic policies and principles which are applied byorganization of different industry such as retail, hospitality, telecommunication and airline.Fundamentals of economic principles play important role at the time of developing strategies formanaging demand and supply of the organization (Santamouris, 2013). Along with this, suchprinciples also play important role in managing business operations at the time of highcompetition in the market. There are lots of changes in the economic system which may alsoinfluence the overall performance of the company. Construction industry also follows theeconomic policies for sustainable built environment for society. It helps in constructing building,parks, etc. The current research is also based on applied economics in built environment.Regarding this, it will focus on VINCI constructions which is one of the leading organization ofbuilt environment of UK. It is providing construction services to individuals of society(Mazmanian, Jurewitz and Nelson, 2013). The current essay will focus on different fundamentaleconomic principles, relating these to both the built environment sector and practices oforganizations towards these principles. On the other hand, Essay will critically analyse theimpact of structural economic change on the built environment sector. Including this, requiredfundamental knowledge and skills and its application to course specific areas of study on theprogramme will also discussed by the current research. Afterwards, the whole investigation willalso include reflective statement about the personal development having regards to their expectedprofessional career path of researcher (Sandy, Tchernis, Wilson and Zhou, 2013). Built environment can be defined as an artificial environment which is developed byhuman beings which can provide appropriate settings for individuals to complete their activities.This surroundings includes buildings, parks, infrastructure, water supply and energy networks,etc. The current research is based on construction industry and built environment of UK. It hasbeen chosen VINCI constructions (Pearce, Barbier and Markandya, 2013).There are number of fundamentals of economic principle which are followed theorganization in effective manner. These include Demand, Supply, Markets and Types ofbusiness. Demand and supply management theory is one of the most important theory whichfocuses on the need, requirements and availability of the products and services in the market.1 | P a g e
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Figure 1: Demand and supply management theory(Source: Demand and supply management theory, 2016)As per this economic theory if customer’s demand is high and supply of product is lowthen it will lead increment in overall price of products and services of the organization (Noormanand Uiterkamp, 2014). On the other hand, if demand is low and organization is capable enoughto make availability of the products and services in effective manner then it may reduce theoverall price of products, Therefore, it can be said that demand and supply management is one ofthe important theory which is one of the important fundamental principle of economics that caneasily influence the overall performance of the organization (Economic principles, 2016).Therefore, demand of the buildings, parks, water supply and energy distribution is generallyestimated by VINCI constructions and on the basis of estimated information organization canbuilt appropriate environment as per the needs and requirements of every individuals. But stillthere are number of factors which can influence the demand of products and services in positiveand negative manner. These are price of goods and services and income status of customers, etc.Overall, demand management is one of the important principle which can influence the overallperformance of the company.On the other hand another principle of economic is supply management which isgenerally followed and applied by VINCI constructions at the time of making availability ofproducts and services for customers and individuals of society (Built Environment, 2016). Supplyof the products and services can be affected by the different factors such as demand of productsand services and price also. Along with this, if supply of raw material is become low thanorganizations can increase the availability of goods. So, VINCI constructions industry alsofollow this principle of economics price and cost of raw materials require for construction2 | P a g e
Understanding Economics for Built Environment_3

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