BM533 - Contemporary Business Economics: Theories and Practices

This report provides a comprehensive analysis of demand and supply within the context of contemporary business economics, using Burberry as an example. It examines the law of demand and supply, including movements along the curves and shifts in the curves due to various factors. The report also compares and contrasts emerging economic theories and models of the 21st century with those of the 20th century, relating these theories to modern business practices, including the neo-classical growth theory and its impact on capital, technology, and labor. The analysis includes diagrams to illustrate key concepts and discusses factors such as taste, income, advertising expenditure, government subsidies, technology, and cost of production. The report concludes by highlighting the importance of understanding these economic principles for effective business management.

Contemporary
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analyse law of demand and also with movement and further change for all factors which
affects the demand curve........................................................................................................1
Explain the law of supply, movement along with the supply curve and also explain change in
supply curve with suitable diagram........................................................................................4
TASK 2............................................................................................................................................7
Compare and contrast emerging theories and models in 21st century contemporary economics
with those of the 20th century, and relate both of these to modern business practices...........7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Economics is undertaken as the most essential factor in all the sectors which is useful in
terms of managing the budgets and plans by which all the prominent areas including products
and services are being managed. Micro economics is the branch that is developed in order to
achieving significant economic areas. It assumes that they provide all the decision-making
actions in order to manage all the significant demand and supply and the decisions which are
being implied for all the prominent scale by all the marginal utility (Grima, Özen and Boz,
2020). All these marginal utility helps in offering proper satisfaction to all the significant
customers and it has been seen that all the major areas and factors including additional services
are outlined and managed in proper manner. For this, demand is undertaken as the desires for all
the purchased commodities in terms of managing the overall surplus amount and payment. The
report leads to cover the law of demand and supply and the business products for the company
named Burberry. The report also includes the major factors which are needed in terms of
maintaining the demand and supply for the products and business in Burberry. There will cover
the economic theories that are discussed in 20th and 21st century.
TASK 1
Analyse law of demand and also with movement and further change for all factors which affects
the demand curve
All of the purchased quantity, as well as the inverse prices, are included in the Law of
Demand. This regulates and ensures that when more prices are charged, the product's expected
quality is lowered. This entails having shrinking areas as well as a general marketing utility.
When decrees in all such regions are made, this will result in a decrease in the quantity for all
future demand and prices being fixed. Consumers imply having the initial unit, which is for all
the economic products that are being produced in order to meet the needs, as well as all the
subsequent units of products in order to reach the successively satisfied fewer valuable areas
(Susiatik and Widiastuti, 2020). As can be observed in the case of Burberry, it encompasses the
concept of elastic demand, which encourages the promotion of specific minimum adjustments in
all of the product's pricing. This also results in high proportional areas where effective changes in
demand can be addressed. As a result, in all places where altering prices are applied to Burberry
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items, buyers will be less likely to buy more and will be more likely to switch to other
organisations that offer the same choice of products and services.
Demand Curve in all Burberry Products
Customers will make further responses for all the lowering values in general purchasing
power offered for multiple products when demand fluctuates and changes, as has been seen in
several regions (Lampa and Abeles, 2020). All of this is done in situations when the price and
quantity of the products will remain constant.
Factors in Demand Curve with changes
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All of the significant demand for a particular product will be altered if it is discovered
that the prices are being changed unwillingly. All of these developments will necessitate
managing positioning in market areas and commodities, as well as affecting other areas and
important positioning and segments (Kuzin, 2021). All of these factors will cause the price to set
the tone and shift the demand curve. Q1 to Q2 are major aspects that must be considered in order
to control demand, and this results in numerous demand curves that shift from P1 to D1. Taste and preferences: It have been observed that all consumer choices will be
established in terms of specific services and items. The main reason for the adjustments
will be taste and general preferences among Burberry customers, since it suggests that
there will be significant changes in fashion. All of this is heavily reliant on effective
advertising, which allows all of the producers and the main seller to create a positive
impression on the product (Mohamed and Mohamed, 2020). If the customer's taste and
preferences are met, demand will rise as a result of good feedback, which will have an
unfavourable effect on all declining demands. All of these factors will cause the demand
curve to shift to the left.
 Income: It is the most significant aspect, and it ensures that all main regions and income
are heavily reliant on the demand for commodities. It has been observed that in all main
regions, income can only be increased when customers' purchasing power is increased, as
this will enable them to afford all goods and materials, as well as to purchase more items,
causing the demand curve to shift to the right (Jabłoński and Jabłoński, 2020). Aside
from that, if demand declines, their revenue decreases, lowering the value of the goods
because the consumer will not be purchasing it. As a result, the demand curve will shift to
the left.
 Advertisement Expenditure: This is the most effective and important part in all of the
company because it has been determined that if the company appears to be making proper
and effective advertising, customers will be given and managed to buy more, which will
influence the customer to buy more and shift the curve to the right (Mutiah, Febrian and
Susanti, 2017). When Burberry uses less of this type of advertisement, it means that
consumers will be less enticed and the demand for the items would decline.
 Changes and the fluctuation in the prices of goods: It is also stated that there are a
significant number of items on which demand will be dependent on different products, as
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there are certain complementary products on which all goods normally alter and costs
fluctuate with advancement.
Change in demand curve
Through this diagram, it can be observed that in all of the inferred changes, the demand
curve usually shifts to the right side as demand increases further, and when demand decreases in
all of these regions, the demand for services and large items decreases. According to this demand
curve, the initial position is d0, and subsequently the curve shifts from d1 to d2 depending on the
preferences of the consumers and their future expectations.
Explain the law of supply, movement along with the supply curve and also explain change in
supply curve with suitable diagram
The fundamental process in which all entire availability is determined by the sale made for
all potential locations and the purchasers for all larger marketplaces is supply. This is
demonstrated via a graph.
Supply and Demand
This helps to produce a significant positive relationship between pricing and quantity
supplied, which aids in the management of products to all extents and in all larger areas of the
market. When a company's goods are handled through greater commodities, the supplier will
boost prices in order to manage the increased growth (Wielki, 2018). This will also apply and
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result in a bigger profit. Burberry is able to sell their products at higher prices to all of their
customers.
It can be observed from this supply curve that all of the slopes upwards will generate a
positive relationship in prices and quantity for all of the major areas and marketplaces. This
graph shows that when the supplier manages the prices in goods P3 and the providing regions q3
implements the pricing through the commodity, the products in p3 will tend to improve to p2 in
order to better manage the supply in all areas.
Factors which affect the supply of specific goods are like: Government subsidies: As it appears that all government subsidies have been increased,
this will manage and cause all of the increases in commodities, as well as the prices of
other things. All of these considerations will, in turn, restrict the supply of all other items
(Corey and Wyatt, 2020). Technology: All of the rise in the supply of goods is made possible by the company's use
of digitization and innovation in order to generate a profit and to grow with further
development. As a result, the organization's overall costs are reduced (Bintara, 2019). Objectives of firms: In all such regions where the firm tends to manage all of the growth
and effective management with the overall record, the major goal on which the company
will normally focus will be to increase the price in order to improve the profit.
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 Weather: It is primarily the impact of weather on which the corporation will have to
comprehend all of nature and the components through which the company may work and
preserve overall profitability. Cost of production: For all enterprises, numerous proposals are made in which all levels
of production and their impact on insufficient needs for raw materials are provided, and
all product reductions are handled by a suitable amount of supply in all commodities
(Marshall-Ponting and et. al., 2019). More firms: This entails fierce rivalry from all market segments, which has a significant
influence on businesses. Better items will be provided, allowing for increased
profitability in the businesses. It will also lower prices for all goods supplied, as well as
their enhancement in important areas and overall compliance.
Change in supply curve
It refers to the shifting of the entire supply on various circumstances, on which all growth
and good management is based. Costs of production, taxes, and technology are only a few
examples. The supply of all items has been given, as well as the growth in the chain with the
curve change from s0 to s1, as well as the drop in supply with the curve shift from s0 to s2. The
essential elements in which the method of production and alignment are reached and framed
have been presented through all of these measures.
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As seen in this picture, all commodity prices are managed and grow as a result of supply.
It causes the curve to change from s to s1, and as the price falls, the supply rises.
TASK 2
Compare and contrast emerging theories and models in 21st century contemporary economics
with those of the 20th century, and relate both of these to modern business practices
Some of the essential theories that are being devised by different economists for the existing
areas in 20th and 21st century in order to manage the effective business which are discussed as:
Neo-classical growth theory:
This theory is given in order to manage the overall enhancement and proposed in 1956
where they offer the national bureau for each and every economic researcher and it implies in
terms of making the suitable focus on economic areas and the overall growth for all the
prominent areas within company (Roy and et. al., 2018). This theory depicts three important
factors that include capital, technology and labour. This theory is given for the short-term
equilibrium frames and also maintain the different type of advertisement amount of capital and
the labour by which the prominent production has been made.
It leads to have the suitable labour and capital with all the achievement in different areas by
which the overall production can be improved. It leads to provide that all the suitable changes
lead to play major role in each and every sector in terms of enhancing the economy and
technology which is required to manage and maintain the production factor. It is usually for the
long- and short-term equilibrium as this will not require any sort of factors (O’Cass and Wetzels,
2018). This theory leads to manage the collection of all the capitals and make sure that the way
in which people leads to manage all the capital for the technological development.
Marx Social economic theory
Karl Marx proposed this theory, which is based on both communism and capitalism. He
was influenced by David Ricardo, a classical political economist. According to this, there are two
primary classes: capitalist and socialist, with the latter understanding that the social and
economic system is aided in the modern world (Nafil and et. al., 2021). The capitalists are
business owners who typically oversee the production process and are responsible for a variety
of resources that are controlled by people from various productions, such as raw materials, tolls,
and factories, all of which are entitled to a larger share of the profits.
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Keynesian Economics theory
According to this theory, products comprise an assumption that wages and prices are set in
stone by nature, as well as an explanation of how the economy will function in a changing
environment (Dequech, 2017). There are primarily three factors: aggregate demand, wages, and
price, which represent the proper use of resources and lead to the advancement of businesses in
larger markets.
CONCLUSION
From the above discussion, it has been identified that the demand and supply depict those
factors that leads to make sure that the business has suitable level of profit and the flow of
products and services within the market area. Further, the supply has positive and healthy
relationship with the quality supplies and prices of specific product as the prices leads to improve
the overall commodities supply that increases it and the vice versa. Moreover, the overall
demand is also considered as the important factor that has the inverse relationship among price
and demand for the offered goods. Further, there are several theories that include Keyesian
Economics theory, Marx social economic theory and neoclassical theory that are emerging in 20th
and 21st century and also leads to contribute towards the development and growth of company.
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REFERENCES
Books and Journals
Bintara, R., 2019. The Effect of The Mechanism of Good Corporate Governance and Company
Size On Financial Performance. South East Asia Journal of Contemporary Business,
Economics and Law, 18(5), pp.2289-1560.
Corey, N. and Wyatt, J., 2020. The Dynamics in the Contemporary Business Managerial
Problems: An American Perspective. Journal of Strategic Management, 4(1), pp.41-51.
Dequech, D., 2017. Some institutions (social norms and conventions) of contemporary
mainstream economics, macroeconomics and financial economics. Cambridge journal
of economics, 41(6), pp.1627-1652.
Grima, S., Özen, E. and Boz, H. eds., 2020. Contemporary Issues in Business, Economics and
Finance. Emerald Publishing Limited.
Jabłoński, A. and Jabłoński, M., 2020. Social Issues and Sustainability in Contemporary
Business. In Social Business Models in the Digital Economy (pp. 1-24). Palgrave
Macmillan, Cham.
Kuzin, D.V., 2021. Rethinking Management of the 21st Century: Аn Approach to Contemporary
Business Education. Revista Eduweb, 15(2), pp.194-207.
Lampa, R. and Abeles, M., 2020. From ontological orientation to axiomatic habitus? An
historical reappraisal of contemporary political economy from a Marxian
angle. Cambridge Journal of Economics, 44(5), pp.1013-1030.
Marshall-Ponting, A.J. and et. al., 2019. Conference proceedings of the 14th International
Postgraduate Research Conference 2019: contemporary and future directions in the
Built Environment.
Mohamed, S. and Mohamed, D., 2020. Data in the Internet of Things Era: The Propertization of
Data in Light of Contemporary Business Practices. International Journal of Business and
Society, 21, p.S1.
Mutiah, S., Febrian, E. and Susanti, L., 2017. Why Do Auditor See an Asset Management as the
Impact on the Quality of the Financial Reporting of the Local Government: Research in
Bandung City Government. South East Asia Journal of Contemporary Business,
Economics and Law.
Nafil, H. and et. al., 2021. Analysis of the Awareness Level of Islamic Economics Doctoral
Students at the State Islamic University of North Sumatera in Using Halal
Products. Journal of Contemporary Issues in Business & Government, 27(5).
O’Cass, A. and Wetzels, M., 2018. Contemporary issues and critical challenges on innovation in
services. Journal of Product Innovation Management, 35(5), pp.674-681.
Roy, A. and et. al., 2018. Mapping Confucian Values in the Context of Ethical Dimensions:
Implications for Contemporary Business Practices. Business and Professional Ethics
Journal, 37(2/3), pp.181-212.
Susiatik, T. and Widiastuti, E.H., 2020. Empowering women in developing autonomous
enterprises to enhance family welfare in Bendan Duwur sub-district Gajahmungkur
district. South East Asia Journal of Contemporary Business. Economics and Law, 21(5),
pp.195-200.
Wielki, J.K., 2018. Ad-blockers as a New Group of Stakeholders of Contemporary Business
Organizations. Przegląd Organizacji, (9), pp.47-52.
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