Management Economics Report: BA Products, Services, and Demand

This report provides a comprehensive analysis of British Airways through the lens of management economics. It begins by describing the nature of the airline's business, highlighting its main products and services, such as food and beverage, family travel, group travel, and entertainment. The report then delves into the role of management economics in the business, emphasizing its importance in cost control, benefit maximization, and strategic decision-making. A significant portion of the report focuses on demand and market equilibrium, examining how factors like the price of substitutes and complements, consumer income, and consumer tastes influence demand for British Airways' offerings. The analysis includes specific examples of how these factors affect the airline's services and the resulting implications for its business operations and customer satisfaction. The report concludes with a list of references used in the analysis.

MANAGEMENT
ECONOMICS

TABLE OF CONTENTS
ASSESSMENT 1.............................................................................................................................3
Describing about the nature of business along with the main products and services..................3
Demand and Market equilibrium.................................................................................................4
REFERENCES................................................................................................................................6

ASSESSMENT 1
British airways is flag carrier. This airline is second largest and which is based on the
fleet size, carried of passengers while behind the easy jet. This airways is the first airline which
take the highest passenger with the single route in specific year. The report explain about the
nature of the business with their products and services along with the role of management of
economics. Furthermore, identify the market and demand equilibrium with their influence
demand, how they are affected with the products and services. Moreover, explain about the
factor that influences the price, elasticity of demand about the main products and services.
Describing about the nature of business along with the main products and services.
Role of management economics in economy.
According to the author, The management economics is just in business financial aspects
to expand the benefit of any foundation and limit cost. Also, whatever arrangements are
produced using this. It is extremely helpful for any business or firm so that each firm and
business can get the greatest advantage. At that point we can say that there is an enormous
commitment of administrative financial matters to benefit boost and deciding strategies. It
likewise helps in doing it. Business financial matters is extremely helpful in arranging a total
possibility among the fruitful activity and creation of any business or firm (Sariolghalam, 2020).
Which goes about as an equilibrium connect between the creation apparatuses and working
frameworks and where to go. Along these lines, this is the greatest and significant part of
business financial matters in any business or firm. Administrative financial aspects chooses the
business is going towards benefit or misfortune. What's more, it is just conceivable when
administrative financial aspects assumes a major and significant part in cost control choices.
Managerial economics in British airways have aspects for helpful in organizing the different
exercises of a business. Thusly, business financial matters reveals to us that the business can
perceive what is disturbing later on.
Products and services in British airways business have been included with the high range
of products and services while through which they can make their customer to be satisfied more
and more (Yap, 2020). Along with this also make their country economic to be work more while
with having the better and development products with their high range of profits. Such way

products and services are Food and drink, Family travel, group travel and entertainment for
customer.
The products and services scholar have selected because as per their thinking that this are
the needs which are must be required by the customer while they are travelling at airways and
also make sure about hat this products are must be important for them. Food and drink have
seems to be important while through which they have their lunch, dinner and many other
activities if they are not carrying with them for having their flights (Lindblad and Guerrero,
2020). Family and group travel are being services for their airways while through which they can
have their better profits and also make sure about their various other offers which are might be
applicable for their growth and making large customer to stay with long term.
Demand and Market equilibrium
Price of substitute:-
As the customer in Airways make their substitute products and services while by using
the other products and various other services. If the customer will not get the family travel in the
airways than they can also prefer to the group travelling for their fun. While through which they
can make sure about their price and that could be somewhat changed. This can be have affected
the demand of the products and services while by keeping the some other products and services
as against the one products (Akinsola and Odhiambo, 2020). This might be also led for having
their better growth and makes their development towards the some other products and services
that have been used in their airways. Airways price will be affected while due to have the
demand of the family products travelling to their customer and they cannot offer them with
having the same price of some other products and services. Substitute price have not be
increased because the customer have taken the flight ticket with the group travelling and leave
the package from the family travel ticket.
Price of complements:-
In the products and services of the British airways that could keep their customer to be
satisfied more and more. While through which as they have increased the price of the family
travel ticket, so the demand have become low rather than increasing in demand (Callen and et.al.,
2020). Food and drink products and various other price have also become low and demand have
been increased while just because of having the price low of their products and various services
in airways. The products and services have not been increased but it had been deceased while

due to having the high price of the family package ticket in their airways. So that customer have
prefer the group travelling ticket from their airways. This could be affected their demand because
of keeping the price of products and services high and that could also led them for high loss in
their business and loss their high range of customer. for having the better demand and supply of
goods and services in business as they are must be required to keep all range of products and
services for their maintaining the safety in future.
Consumer income:-
In this case the income and demand are being directly connected with each other or
related with each other. This means that income will cause the demand of the consumer for
having their high range of products and services in the organization. Along with this decrease in
income that could cause the demand to be fail. In this case the demand have been affected more
and more. As consumer income have been seems to be more important rather than having their
loss in buying for any other products and services (Kavanaugh and Quinlan, 2020). Some of the
consumer can afford the products and services while by having their high price and many of the
consumer cannot easily afford them just because of having their less income in business. The
consumer income cannot be constant that seems to be increased and decrease this might be also
led for having the less income sources and they cannot easily afford their products and services
as per their requirements.
Consumer tastes and preferences:-
As taste and preferences refers to the satisfaction of the consumer and this could also led
their requirements to be fulfil. When the price will decrease the consumer tastes seems to be
changed and this could also have their satisfaction level from the organization (Ng and Wong,
2020). For having the most goods, there must be the positive relationship between the income
and amount of goods that have fixed by the assumption in their business.

REFERENCES
Books and journals
Sariolghalam, M., 2020. The New Emerging Geo-Economics of the Middle East. International
Journal of Economics and Politics. 1(1). pp.35-43.
Yap, W.Y., 2020. Business and Economics of Port Management: An Insider’s Perspective.
Routledge.
Lindblad, H. and Guerrero, J.R., 2020. Client’s role in promoting BIM implementation and
innovation in construction. Construction management and economics. 38(5). pp.468-482.
Akinsola, M.O. and Odhiambo, N.M., 2020. Asymmetric effect of oil price on economic growth:
Panel analysis of low-income oil-importing countries. Energy Reports. 6. pp.1057-1066.
Callen, J.L. and et.al., 2020. Capital Market Consequences of Audit Office Size: Evidence from
Stock Price Crash Risk. Auditing: A Journal of Practice & Theory. 39(2). pp.1-26.
Kavanaugh, M. and Quinlan, J.J., 2020. Consumer knowledge and behaviors regarding food date
labels and food waste. Food Control. 115. p.107285.
Ng, C.Y.N. and Wong, B.K.M., 2020. A consumer experience perspective. The Routledge
Handbook of Tourism Experience Management and Marketing. p.283.

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