Business Economics Report: UK Market, Tesco, and Global Impact

This report delves into the core concepts of business economics within the context of the UK market, with a specific focus on the operations and strategies of Tesco. It begins by examining the economic problem of scarcity, resource allocation, and demand, subsequently exploring the roles of supply a...Read More

BUSINESS
ECONOMICS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Description on the economic problem of the scarcity and demand resources and allocation
of resources in effective manner.................................................................................................1
1.2 Define the role of the supply and demand in the market in order to deal with an economy
and equilibrium...........................................................................................................................2
1.3 Evaluation on the importance of marketing in different market system in general context. 2
1.4 Description on the factors of the elasticity of demand. ........................................................3
TASK 2............................................................................................................................................4
2.1 Define the implication of the pricing and corporate strategies and objective of the
organization on its operation.......................................................................................................4
2.2 Description on the setting of the price in differed marketing structure. ..............................5
2.3 UK rule and regulation influence the market power.............................................................6
TASK 3 ..........................................................................................................................................6
3.1 Define structure of the UK company which has altered in 21 centuries...............................6
3.2 Description on the tools for meeting macroeconomic policies.............................................6
3.3 Performance of UK economy within the global market.......................................................7
TASK 4............................................................................................................................................7
4.1 Comparative advantage from emerging economies against UK ..........................................7
4.2 Description on the analysis of the impact of the emerging economics such as Tesco on
developed countries. ...................................................................................................................8
CONCLUSION................................................................................................................................9

INTRODUCTION
The business economic deals with the various issues such are as management, expansion
as well as other kind of strategy which are helpful in manner to study of various types of
financial issues and challenges that are to be being experienced by the business and this all has to
be performed in the specific market (Mas-Colell, 2014). The term economy is referred as the
study of various components in the market which is inclusive of the factors like demand and
supply. This kind of factors are affecting the scarcity concept in the market. In this present
assignment the problem has been discussed in relation to the marketing activities of the UK. The
present report is covering the activities of the Tesco which is distributing it services in the global.
This are engaged in the super market activities in this they need to give major consideration on
demand and sup[ply activities of the firm. In this present report the advantages of differed
market has to be evaluated so that problem in relation to allocation of resources can be managed
(Newbold, Carlson and Thorne, 2012). The role and supply of demand, equilibrium can be
understood in effective manner.
TASK 1
1.1 Description on the economic problem of the scarcity and demand resources and allocation of
resources in effective manner.
This is one of the most basic problem which is facing by the UK in relation to the
resources because it is very limited manner. The need and wants of the employees are not limited
as per the availability of resources in market. The current market is rapidly growing in this
manner the control measure is need to be taken so that market can run its activities in smooth
manner. In order to have the competitive advantage in market it is very essential to manage the
whole work so that demand of the person can be satisfied. In this relation the main problem in
relation to that company is not having skilled workforce due to which growth of organization is
hampering in large manner (Mas-Colell, 2014). This kind of situation leads to have The tern
scarcity can be understood as the something is missing from the economy. With the help of the
equitable allocation of resources the proper use of production activity can be helpful in manner
to meet the demand of customer in the market.
During the time of allocation of resources various things are need to be considered and some
question is need to be asked are as-
 What are the efficient use of resources.
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 How to allocate the resources in equally manner.
 What kind of products and services need to produce to satisfy the demand.
 Who has to acquire the good and services.
In the Tesco, these resources will be taken on the basis of business requirement. They are
able to deliver creative results at workplace to make sure that business will easily develop their
operations and functions in systematic manner. As per the chosen organization requirement,
manager need to determines allocation of the resources.
In market there are various issues such are as unskilled labour force, ineffective technology can
leads to have growth of the organization in adverse manner. The Tesco is taking various kind of
the effective step in relation to deal with the above all resources. They are taking innovation
stratgy so that customer are able to get attracted towards the firm activities this kind of the
activities are very helpful in relation to enhancing the brand image of the firm. The new and
innovative procedure need to be implemented so that firm can run its activities in smooth
manner.
1.2 Define the role of the supply and demand in the market in order to deal with an economy and
equilibrium.
The equilibrium is the point where demand and supply of the market forces intersects
each other. With the help of the demand of the customer art the specific manner the equilibrium
point can be known. In this manner the comparison with the factor of supply can be done in the
specific manner. In this manner the organization can know that at which point the demand and
supply are equal (Naudé, 2010). This kind of activities are very helpful in manner to full fill the
need and expectation of the consumer in the market. This kind of things are helpful in order to
maintain the brand of business enterprise. With the help of this kin of process the satisfaction of
consumer can be achieved. In this the main problem is in relation to the allocation of resources in
the ineffective manner.
Supply and demand play vital role in the enterprise to make successful operations and
functions. In this aspect, equilibrium point will be achieve in the market towards the business
aims and objectives. When price rising in Tesco, supply also rises so that it assists to complete
demand of the particular products in systematic manner. It also covered high cost to produce
effective functioning at workplace. Customer demand and requirement also goes rise with
purchasing power of the company. Low price of the products and services also requires equitable
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that beneficial to the company. When demand curve of the business move opposite side, products
prices has been changed. Hence, it could be stated that value of money need to be placed in the
systematic and equal term. It is the best way to achieve effective position then the equilibrium.
1.3 Evaluation on the importance of marketing in different market system in general context.
There are many kinds of market system which are essential on order to have smooth
functioning of marketing activities. In this manner some of them are discussed in following
manner are as-
Mixed market economy- in this kind of economy the control in relation to allocation of
resources are in both of the hands such are as government bodies as well as the organization. In
this situation it is very difficult to cope up with the marketing activities as it is most time and
cost consuming factor. The organization has advantage to cater effective information towards the
business aims and objectives. It is the systematic process review that helps to identify relevant
information at workplace. However, it also generates conflicts at workplace among government
and private businesses as well.
Free market economy- This is the kind of market forces where there is no control of the
legal bodies and its operation activities. In the market forces are free to decide the prices and
allocation resources in effective manner. In this the participant of market are having idea that
what is need to be produced and what not. This kind of forces are helpful in manner to have
better allocation of resources (Kurzban and et.al., 2013). In this the price point is determined at
the intersection point in relation to maintain the balance between both demand and supply forces
of the economy. In this aspect, business has advantage to set their prices and undertake revenue
in systematic manner. However, it also impacts negatively because customers are not easily
attracted towards the business when they are getting opportunities to purchase on low price from
other business.
Command Market economy: In the command and planned economy system, scare
resources are owned by the government. In this way, resources will be allocate and sets for the
production targets and growth. Furthermore, market price also play important role to informing
resource allocations in decision making. Main advantages of this system in Tesco is government
take important part in order to set the goals and objectives at workplace.
The role of the opportunity cost is useful to make effective decision making-
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This kind of the cost is known as value of selection it has not to be ignored in order to perfoming
the market function in effective and efficient manner. The Tesco organization need to selct thise
alternative which is helpful in order to earn high volume of profit. If business is capable of
earning expected return that it may lose its opportunity cost.
1.4 Description on the factors of the elasticity of demand.
It can be know with the help of the following description are as-
Elasticity of demand- it can be known as other thing being equal. The elasticity of Demand
refer to gap between the prices and its demand of the product available in the market. If the
demand of the commodities increase in the market than price of that good will be increased and
vice versa(Lin and Prince, 2013). This kind of situation can have wide impact on the economic
growth of the nation. In order to cope up with this kind of factor it is essential to understand the
need of the consumer. With the help of this product which is sold by the Tesco in high manner
can be known. In this relation it can be seen that the consumer of the Tesco are sensitive by
nature and due to this demand is highly elastic in the market. There are some importance in
relation to the elasticity of demand can be known in the following manner are as-
Dispute among the consumer- at the time of absence of supply factor from the market,
it can be seen that the rivalries among the consumer can be increased. Therefore, it could be
impact on the business functions and operations of Tesco. Customers are not getting effective
results at workplace towards the systematic work performance.
International trade: With this regard, pricing need to be set to make good which is the
important element to identify demand of the particular products. Different countries fixes their
price for products and services instead of inelastic.
Factor pricing: Elasticity of demand also helps to enhance price that is essential element
of factor of production. Each factor share production in the national outcomes that implement
several dimensions to increase products and service demand in Tesco.
Competitor among producer- in this manner there are large kinds of competition
available in the market among the various business enterprise at the time of increasing the
demand of the commodities sin the market (Lin and Prince, 2013). The organization is able to
attract the customer in the market by full filling their needs. Tesco has major competitors, so that
they are unable to attract the customers in market to fulfill their demand and needs in systematic
manner.
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Role of government bodies- The government need to make effective strategies so that
market force can run their activities in effective and efficient manner. In this manner taxation
policies is to be formulate in effective manner. The organization should follow all the activities
in order to satisfy the customer in large manner.
Rivalries among the produces and customer- In the competitive market the Tesco
organization is taking many efforts in order to increase the price of the product in the higher rate
so that profitability of the organization can be enhanced. The Tesco need to make effective
differentiation with the competitor product in the market so that are able to make the more
attractive goods which are helpful in relation to satisfy the need of the people. By knowing the
demand of customer in the market they are able to attract large number of customers. In this
manner they can work in manner to grow the profit revenue of the organization.
TASK 2
2.1 Define the implication of the pricing and corporate strategies and objective of the
organization on its operation.
The main aim and objective of the business enterprise are discussed in the following
manner are as.
 Increase in base of customers
 Expansion of business operation
 The selling of the product at the reasonable price.
The strategy of the product is to be in the effective manner in relation to achievement of goals
and objectives of the business enterprise. The main motive of the business Enterprise is to
increasing the customer base of the market. In order to enhance the customer satisfaction is
essential to fulfill the demand of consumer (Lin and Prince, 2013). The producer in the market
need to choose this product with the help of which demand of the product can be increased.
Method of pricing- in the organization of Tesco there are various number of pricing methods are
available in the market in among variable on best has to be selected which will helpful to earn
high amount of productivity and profitability in the market. This all are defined in the following
manner are as-
Penetration pricing- in this once the prices is to be selected at the lower level of the new
products In relation to enhancing the sale. By adopting this kind of pricing strategies the
organization is able to make large amount of profit.
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Competitive pricing- in this manner the company has to set lower prices as compared to
its competitor in the market (Vasant, 2012). With the help of this the firm can able to gain the
attraction of the consumer in the large manner.
Skimming pricing- This pricing method is very helpful in order to get the competitive
advantage in the market. As per this the company can set the high price for his products. Till the
time when other company is start to offering the same kin of products in the market.
Premium pricing- in this at the first level company set the higher price for its product in
order to earn large amount of profit. This pricing strategy is very helpful form the business
enterprise by selling unique product in the market.
In this relation the Tesco has selected the low pricing strategy in order to target the large number
of customer in the market. The main reason in this relation is that they have to follow that market
strategy in which price is sensitive among the used and it can have large effect on the buying
decision of the consumer (Summers, 2014). Along with this the Tesco company has to choose
the attractive marketing techniques in order to sale the product in the market. This kind of
activities are helpful in order to earn large amount of profitability and productivity.
Pricing is the important aspect which helps to Tesco to determines operations and
functions in systematic manner. Supply and demand of the company has been based on their
objectives. Thus, the chosen business able to set their brand image in front of customers.
Following are certain objectives has been placed which implemented to the business:
 Survival: Prices has been set that make flexibility in the business environment. With this
aspect, Tesco able to increases sales with charge low price on the products. In this way,
survival based pricing implemented with objectives.
 Profits: Pricing is the element that could be create impact directly or indirectly on Tesco
activities. It includes production pricing on Tesco to increase their profits.
 Sales: it is the other important perspective that helps to encourage people to increase their
sales with producing more quantity at low cost. Hence, market share also increasing
easily.
2.2 Description on the setting of the price in differed marketing structure.
These all are to be defined in the following manner are as-
Monopoly- In this market there are various number of buyers but the seller is single in relation
to sell the product and services in the market. There are large number of customers but no
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competitor are available in this relation the firm will take the various initiative in order to set the
price of the commodities at high level (Mas-Colell, 2014). The Tesco is able to produce this
product in the market which is not having nay substitutes available in market. In this manner the
buyer will be ready to purchase product at the higher price. The price make is the monopoly or
firm who set the price by getting influenced with the competitors price in the market. This thing
is not having any effect on the perfect substitutes in the market.
Perfect competition- in this kind of the market the organization will consider the market
structure which is able to determine the equilibrium points of demand and supply factor in order
to sale the product and services in the market. In this present time there are many kinds of tyeh
organization which is offering same kind of services are like Tesco. In present there are differed
type of organization and large number of customers available in the market.
Oligopoly market- in this market there are small number of seller, in this manner they need to
take many effective steps in order to reduce the competition in the market. By setting high price
the market can be able to deal with the consumers (Newbold, Carlson and Thorne, 2012). The
product type which is using by the firm is homogeneous products and it can be known as the
pure and perfect oligopoly market.
Monopolistic- There is one produces and differentiate kind of product available in the market. In
this manner they should have idea in relation to sell the product in the market.
Impact of operation decision of the Tesco limited are defined in the following manner are as-
Product- The Tesco organization is taking various effective steps in order to produce those good
and services which is able to attract the large number of customer's in the market. In this manner
it is essential to bring innovation in the market.
Price- If company is taking carious effective steps in order to set those price which will be
helpful in relation to increase the sale rate of the company.
Place- By making online website they are able to attract large variety of customers in the market
2.3 UK rule and regulation influence the market power
There are different type of regulations and rules that are imposed by government of UK
and it is important that all the firms or organizations follow them. In this context, main part is
played by the market authorizes and competition in order to make sure that such practices in
relation with competition can be enacted in effective manner. There are many firms that develop
similar set of products and services. It is important that there is proper competition among each
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of the firms (Lin and Prince, 2013). In this context, Tesco also need to follow the laws so that
they are able to follow fair competition. They make use of Enterprise act 2002 that consist of
business activities. It is the responsibility of office trading of Tesco to carry out the business
activities. Further, they should not sale any type of defective products. Further all the
information to customers should be delivered about their products and services. In addition to
this, the advertisement act 2012 it is important for the cited firm to provide authentic information
to promote the products and services.
TASK 3
3.1 Define structure of the UK company which has altered in 21 centuries.
The economic structure is known as the changes in the situation of the market ,
investment and income in relation to difference sector. The economic structure is defined in the
following manner are as-
Labor and manufacturing productivity- they can appoint high skill employees at the lower
salary in comparison to other countries (Kurzban and et.al., 2013). It can be done in manner to
free policies of trade. In this manner the company need to used advanced technology products.
Wage competition- the less wage rate may be reason the demotivate the employees or they are
not able to perform their activities in effective manner. In perfect competition the employees are
give minimum wages rate in order to earn high amount of profitability.
3.2 Description on the tools for meeting macroeconomic policies.
This will be helpful in order to enhancing the GDP of the nation and employment for
controlling the need of supply of money in market. These are as-
Fiscal policies- in order to have better performance the government of the UK need to fix the tax
rate in order to have improvement in the economic performance of the market (Hyclak, Johnes
and Thornton, 2012).
For intense- if legal bodies have reduction in the spending of amount than greater money would
be present for the customer.
Monetary policies- it is the kind of the central bank in which it is essential to have the track of
the supply of money through alteration process. In this the bank has to meet the interest rate in
order to full fill inflation targets (Gillespie, 2013). One of the best advantage during this time is
to survive in the market for longer period.
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With the help of the both Fiscal and Monitory policies on Tesco organization need to charge high
rate of interest so that firm is no need to take loan as they are paying high interest rate.
3.3 Performance of UK economy within the global market.
There are many kinds of the performance in the economy which can be known with the
help of the employment, GDP rate, inflation etc. along with this it is essential to have idea about
the performance of the business enterprise (Dumas, 2017).
In the past year 2016 the GDP growth rate of the business enterprise is reduced to 2.8% to 2.3%
in other hand it has enhanced to 4.8% as compare to the previous year. In the starting of the 2017
the GDP is increased with the 0.5%
IN 2016 in the month of September the inflation rate of the UK has been increased to the 0.2%,
this kind of situation occurs due to increase in the customer price index in manner to 0% to 1%
but in the US it is the 0.8%.
TASK 4
4.1 Comparative advantage from emerging economies against UK
Both international trade and elements of the supply chain impact for the factors like
connectivity, technology and liberalization. UK is able to attain competitive advantages with the
help of its emerging market. Further, it has the freedom to develop their market in different
countries (Duan and Huang, 2014). This way, the type of benefits that they get is favourable for
Tesco as well.
Tax system: The type of taxation method that is applied by at UK is simple to understand.
On the amount of 1.5 billion, there are 28%. On the other hand, for small scale firms have they
have to pay 28% of profit for 300000 GBP.
Openness to foreign investment: The type of law that are followed by the firm is
favourable enough to make sure that all the other companies are able to make their investment
easily.
Advantages of trade:
 They have plenty of resources so that all the firms get benefited (Devlin, 2012).
 It is a free trade framework that is followed.
Disadvantages:
 Low wages are provided to employees.
 Amount of immigrations has increased.
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4.2 Description on the analysis of the impact of the emerging economics such as Tesco on
developed countries.
In the post globalization and Establishment of the structure for free trade trading of the
need to have those activities holds the rapid pace and most of the countries have to take initiative
in order to trading with each other (De Jong, 2013). In this most of the market in consist of the
70% of the population in around all the world. The Tesco is need to take many effective steps in
order to considered itself as the one of the appropriate example of the emerging issues. The
benefits of the Tesco are limited in the economics such are as-
 There should be increase in the food and services.
 The commodities are to be available at economical price.
 The demand of the market has been incremented.
 The growth in the base in the market.
With the help of this kind of activities the firm is able to sustain the growth in market and they
are not able to generate more amount of profit. This kind of activities help in manner to
influencing thew operation of the business. This will help to have strong brand image of the
company.
CONCLUSION
Hereby, it has been concluded that the Tesco is having various kind of huge impact due
to change in the economic condition of the country. The level of income, demand and capacity of
having all issues have huge effect on the economy of the country. The fiscal and monetary
policies of the government also having wide impact on the business in many ways. This is helful
in managing the supply of money. The role and supply of demand, equilibrium can be
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understood in effective manner. The term economy is referred as the study of various
components in the market which is inclusive of the factors like demand and supply. This will
help to have strong brand image of the company.
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