UNIT 55 Business Economic - Report

UNIT 55 BUSINESS
ECONOMICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Outlining the summary of UK economy, its economic system and characteristics...............1
TASK 1............................................................................................................................................1
(1.1) Discussing the scarcity problem and allocation of resources in organisation...............1
(1.2) Outline significance of supply and demand as well as equilibrium in an economy......2
(1.3) Evaluate different kinds of market systems and opportunity costs in economic system3
(1.4) Outlining demand elasticity and significance of it........................................................4
TASK 2............................................................................................................................................4
(2.1) Discuss the implications of pricing as well as corporate objectives..............................4
(2.2) Comparing market structures in terms of determining price of products by organisation. 5
(2.3) Discuss impact of UK regulations on market power.....................................................5
TASK 3............................................................................................................................................6
(3.1) Evaluation of changes in economic structure of UK and its impact on the organisation6
(3.2) Outline the evaluating tools available to meet macroeconomic policy making in the UK 6
(3.3) Provide economic performance of UK country with reference to GDP growth rate,
inflation and unemployment indicators..................................................................................7
TASK 4............................................................................................................................................9
(4.1) Discuss the theory of competitive advantage with reference to emerging economies
against UK .............................................................................................................................9
(4.2) Evaluate impact of developing economies on UK.........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Economy is largely impacted by the performance of companies. This can be seen on UK
as well. The enclosed report deals with Co op food organisation which is producer of grocery
items and had impacted by scarcity of resources and this directly impacted UK economy. The
demand and supply has inverse relationship between them. The demand elasticity also plays
important role in the organisation (Boons and et.al, 2013). Pricing decisions should be made by
organisation in accordance to the competitors else, customers' will be attracted to them. As such,
lower or competitive prices should be implemented by the company.
Outlining the summary of UK economy, its economic system and characteristics
UK is the world's largest economy and is ahead of other countries in terms of growth and
development. UK has high GDP rate which makes it a developed nation. In contrary to this,
current GDP rate is declined as from 2015 to 2017 year, rate has come down to 0.5 to 0.3 %
which is because of recession prevailing in the country. UK has adopted mixed economic system
which comprises socialist and capitalist. In simple words, blend of socialist and capitalist is
adopted by UK which helps to take better and enhanced decisions having concern of society
upliftment and at the same time industrial growth is initiated. Following are characteristics of
UK :
 The government of UK has enacted strict rules and regulations over private industries.
 In the economy of UK, there is perfect blend of Private and Public sector which is
focused on both the aspects and as a result, private firms tries to maximise profit and at
the same time, public enterprises focus on upliftment of the people at large.
 Advantage of mixed economic system is that it is a planned economy and allocates
resources effectually.
 Private firms earns profit and this ultimately helps welfare of the society with much ease.
TASK 1
(1.1) Discussing the scarcity problem and allocation of resources in organisation
The scarcity problem arises when company is not able to meet the basic demand of public
and as such, demand and supply goes in inverse relation (Cowling, Liu, Ledger and Zhang,
2015). Co op food company has also faced similar situation of unable to cope up the increasing
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demand of the customers' in the market. Co op food is a firm which sells grocery items to
customers. For meeting demands of them, enhanced decisions to be formulated and implemented
by it so that it may be able to meet the demands of public at large. This will help to eradicate
scarcity issue in the country in the best possible way.
Government of UK had taken certain steps so that demands may be fulfilled up to great
extent and scarce issues may be solved by organisation in the best possible manner (Disch,
2016). Government had provided with quality seeds so that better production may be
accomplished effectually. This helped company to meet demands of public as demand and
supply was elastic. The scarcity problem was resolved with the help of steps taken by the
government and demand was met. Moreover, prices were hiked of the vegetables and this helped
organisation to meet the scarcity problems with much ease.
(1.2) Outline significance of supply and demand as well as equilibrium in an economy
Demand and supply plays an important role in the economy. Demand may be explained
as the willingness of customers to pay for the items. In contrary to this, supply is goods and
services provided to customers' by taking price as consideration. To achieve stable growth in an
economy, perfect balance of both demand and supply should be made effectively. Demand and
supply has an inverse relationship between both of them. This means that when one factor
changes, the negative aspect can be seen on other one.
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