Managerial Economics Report: Case Studies, Strategies, and Analysis

This Managerial Economics report delves into several key areas, including an analysis of anti-competitive schemes and price-fixing in the canned tuna market, examining the relationship between raw and canned tuna prices and the impact of mergers and acquisitions. The report also addresses the cost of sending money overseas from Australia, identifying major banks and money transfer companies and the ongoing inquiry into foreign exchange services. Furthermore, it explores the EU's allegations against Google, Google's defenses, and the impact of Chinese consumer demand on luxury Swiss watch manufacturers, along with the implications of new gifting policies. The report also examines concerns around oil supply, detailing the roles of major players like Saudi Arabia, the US, Iraq, Iran, and Russia. Finally, it discusses the product life cycle, focusing on Apple's strategies to extend product life and pricing strategies, and their impact on demand. The report references various books and journals to support its analysis, providing a comprehensive overview of managerial economics principles and their application in real-world scenarios.

Managerial Economics

Table of Contents
PART 1..................................................................................................................................................2
The facts of this case in relation to what the companies involved were doing to implement the
anti-competitive scheme..................................................................................................................2
Relationship between the price of raw tuna and the price of canned tuna in this case and how
this relationship played a role in the anti-competitive conspiracy being exposed...........................3
Merger & Acquisition activity among suppliers in this market impacted competition and played a
role in the price-fixing activities being exposed..............................................................................3
The collusion and price-fixing in this case impacted consumers in the US market........................3
TASK 2.................................................................................................................................................3
Describe how the cost of sending money overseas from Australia.................................................3
Identify the four largest banks in Australia and the three largest online money transfer companies
.........................................................................................................................................................3
Describe generally how the inquiry will be conducted with specific reference..............................4
Describe the reasons why the EU has adopted these policies..........................................................4
TASK 4.................................................................................................................................................4
Describe the EU’s allegations against Google.................................................................................4
Describe Google’s defenses and explanations in response to the EU’s case...................................4
TASK 5.................................................................................................................................................4
Describe the EU’s allegations against Google.................................................................................4
Describe the EU’s allegations against Google.................................................................................5
The importance of demand from Chinese consumers to the manufacturers of luxury Swiss
watches ...........................................................................................................................................5
New policies implemented by the Chinese government to limit “gifting”......................................5
The steps that can be taken by Richemont and other suppliers.......................................................5
TASK 7.................................................................................................................................................5
Concerns around oil supply.............................................................................................................5
TASK 8.................................................................................................................................................6
Product Life Cycle and its various stages........................................................................................6
Describe steps taken by Apple to extend the Product Life Cycle....................................................6
Pricing strategies being implemented by Apple and impact on quantities demanded for the
products............................................................................................................................................7
REFERENCES.....................................................................................................................................8

PART 1
The facts of this case in relation to what the companies involved were doing to implement the anti-
competitive scheme
The chicken of sea and many more company were involved in implantation of anti-
competition act (Atack, 2018). From these companies some of involved in expos the scheme. By
fixing the prices the companies want to control the market. The U.S market was controlled by these
brand approx. 85% of total market.
Relationship between the price of raw tuna and the price of canned tuna in this case and how this
relationship played a role in the anti-competitive conspiracy being exposed
The fresh/raw tuna is sold by the local fishers. The prices of the tuna differentiate with the
quality of it. Relationship in the prices of both are positively related to each other. The raw tuna is
the input for canned tuna so if prices of raw tuna increase then other one 's also increased. This
played a vital role in anti-competitive conspiracy because it promote a unfavorable competition and
posses a restriction on healthy competition.
Merger & Acquisition activity among suppliers in this market impacted competition and played a
role in the price-fixing activities being exposed
By using the activities of merger&acquisition the suppliers combine their business and
control the supplies . which effect the prices in market and in this way it plays a role in price fixing.
Because by using these techniques they were able to control prices according to their own motive of
profitability.
The collusion and price-fixing in this case impacted consumers in the US market
This strategy affect the consumers very closely (Beccalli, Anolli and Borello, 2015).
Because the suppliers able to occur profit by taking unfavorable price so consumers faces the
situation of inflation. But the consumers had not any other option to fulfill their needs.
TASK 2
Describe how the cost of sending money overseas from Australia
Australian competition regulator recently held an enquiry into foreign exchange services for
small business enterprises and consumers, in this context it may be noted that Australians sent
approximately AU$9 billion overseas also Australia is third most expensive G20 country for
consumer and small business which provides basis for inquiry in this field.

Identify the four largest banks in Australia and the three largest online money transfer companies
In Australia these 4 largest bank : Commonwealth Bank of Australia, Westpac Banking
Corporation ,Australia and New Zealand Banking Group and National Australia Bank and top 3
money transfer company: OFX , World first XE money transfer is major base of this enquiry which
cover almost whole money transfer acti . Such enquiry exhibits the misconduct and fraud of
customers. Bank association is highly disappointed with the interim results of enquiry and waiting
for final results (Drew, Kortt and Dollery, 2016).
Describe generally how the inquiry will be conducted with specific reference
Inquiry targets these major issues such as supply of foreign currency exchange services
along with pricing and cost related terms, up-to what extent there is competition between suppliers
and service provider, threats for new entrants and effects of economic factors which restricts the
power of consumer to compare price and services etc.
TASK 3
Describe the reasons why the EU has adopted these policies
To ensure fair dealing, prevention of abuse of dominant position and controlling position of
market European union creates policies from time to time. One of them is furnished to regulate
competition among suppliers to European consumers. Such policy is designed to ensure that
suppliers do not create cartels and monopolies that can affect the consumers powers.
TASK 4
Describe the EU’s allegations against Google
European Commission imposed a €2.4 billion penalty after finding that steps taken by
google is affecting competition and consumers (Jaques, 2017). In this context it may be noted that
google used its by default operating system to limit its dominance as a search engine that
preventing competitors from new innovations and competing which seen as unlawful under EU
unbelief rules.
Describe Google’s defenses and explanations in response to the EU’s case
It give the response to EU govt. that its not a planned fault it can be a fault of operators
which was used by the readers (Kleymann and Seristö, 2017). Sometime that search engine restrict
some search criteria. Apart from that, sustained support of the readers was also presented by the

google as a proof.
TASK 5
Describe the EU’s allegations against Google
The EU govt. against it because according to the govt. google use the innovations for its
personal profit motive . It didn't considered the consumers satisfaction. These activities impact
negative effects on the competition and consumers because of denied behavior towards other
competitive tools in mobile phones of consumers.
Describe the EU’s allegations against Google
It presents some arguments against the EU that it ignores the other option of business model
and only considered the android options. It also compare the IOS system run by the apple phones.
TASK 6
The importance of demand from Chinese consumers to the manufacturers of luxury Swiss watches
Demand from chines consumer effect it in very wide way because it fell down approx 24%
from the last estimation. Total export was fell down approx 10%. from the side of Chinese
customers. China is a main part for the luxury watch manufactures so it effect now the market
badly.
New policies implemented by the Chinese government to limit “gifting”
The new policy about the gifting defines that if any gift buyer buys it from based on
mainland not from abroad then it will avail its benefits on his/her account . If buy from abroad
based then it will be dutiable and benefits can't be availed. So these restrictions reduce the demand
for given luxury commodity.
The steps that can be taken by Richemont and other suppliers
The various steps are taken by the manufactures like they customize the previous parts ,
reduce the cost and other benefits also introduced with new incentives. Which improve its sales than
the last period.

TASK 7
Concerns around oil supply
The oil prices faced downward fall because of over supply by the suppliers. According to the
analyst the Saudi Arabia is the biggest oil exporting country in the world (Wells, 2016). It didn't
take any action to cut the limits of its production. It is also member of OPEC( organization of
petroleum exporting countries). That situation is also named as “price war.
 United States: The united states also tolerate the price war very closely. The most of
American fracks effected by that because they borrowed in heavy quantity with the
forecasting of high prices in future . The other oil companies are also included in these
frackers. At that time the states tolerate a very riskiest situation.
 Saudi Arabia: It is the biggest oil exporting nation in the world. It was not affect so much
by the price war. Because it own cost is very little per barrel.
 Iraq : it plays also a biggest role in oil producing . Its northern oil fields are its biggest
source of oil producing. The oil prices at this time made a defeat for the ISIS.
 Iran: It accused the Asian Muslim countries to diminishing its economy. It also consider
these countries as a big factor which plays a role in down the oil prices.
 Russia: The price war was effect the Russia very closely. It was also very riskiest situation
if the oil prices continue close to the present level.
TASK 8
Product Life Cycle and its various stages
Life of a product is also like a life of human being. It also passes through the various stages
from introduction to growth, maturity and decline these known as life cycle of product.
Stages :
 Introduction – It include the product awareness and strategies for awareness such as
product branding , pricing, distribution&promotion.
 Growth : In this stage the firm create a brand image in the market and obtain a market share
(Wells, 2016).
 Maturity: In this stage the main motive is to defend market share not profit maximization.
 Decline: In this stage the sales are on the death points.
Describe steps taken by Apple to extend the Product Life Cycle
The various steps are taken by the apple for its product like for mac, i phones, i pads, i

watches. Detail explanation as follows:-
Macs: Apple uses the strategy for its life extension are improving quality, use the strategy to
create a strong brand image in market.
I phones: it introduced the new series of I phones for increasing the life of these. It launches
new series with new features to create market share. New series was with the new updated versions.
I pads: it design the product as which convenient to all group of people . Mainly it target the
young level people. Apple tagged its I pad as “1000 songs in your pocket” for obtaining market
share.
I watches: apple extended its life cycle by using the various strategies like using new
innovation, increasing RAM.
Pricing strategies being implemented by Apple and impact on quantities demanded for the products
It uses the skimming strategy (Kleymann and Seristö, 2017). The quantity demanded of
various product decreased due to this strategy. And some time increases because people buy more
and more considered as it luxury good and for showing their status.

REFERENCES
Books & Journals
Atack, J., 2018. Estimation of economies of scale in nineteenth century United States
manufacturing. Routledge.
Beccalli, E., Anolli, M. and Borello, G., 2015. Are European banks too big? Evidence on economies
of scale. Journal of Banking & Finance. 58,.pp.232-246.
Drew, J., Kortt, M.A. and Dollery, B., 2016. Did the big stick work? An empirical assessment of
scale economies and the Queensland forced amalgamation program. Local Government
Studies. 42(1). pp.1-14.
Jaques, E., 2017. Requisite organization: A total system for effective managerial organization and
managerial leadership for the 21st century. Routledge.
Kleymann, B. and Seristö, H., 2017. Managing strategic airline alliances. Routledge.
Wells, P., 2016. Economies of scale versus small is beautiful: A business model approach based on
architecture, principles and components in the beer industry. Organization & Environment.
29(1). pp.36-52.