Business Economics Report: Analysis of UK Economy and Marriott Hotel

This report delves into the business economics of the Marriott hotel, analyzing its operations within the context of the UK economy. It begins by exploring the economic problem of scarcity, resource allocation, and the impact of unemployment on the hotel industry. The report examines the roles of supply and demand, market equilibrium, and the importance of different market systems, including perfect competition, monopolies, and oligopolies. Furthermore, it investigates the role of opportunity cost in organizational decision-making and the significance of elasticity of demand in market interactions. The report then analyzes pricing strategies, corporate objectives, and how prices are set in various market structures, as well as how market structure and operational decisions affect business behavior. Additionally, the report assesses the changing structure of the UK economy, macroeconomic policies, and the UK's performance in the global market, including its impact on the Marriott hotel. Finally, the report discusses the theory of comparative advantages, the advantages and disadvantages of free trade, the impact of emerging market economies, and the consequences of recent economic shocks, providing a comprehensive overview of the economic factors influencing the hotel's performance and strategic decisions.

BUSINESS ECONOMICS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Economic problem of scarcity and demand resource allocation to manage economy..........1
1.2 Role of supply and demand in the economy and equilibrium for achieve objectives...........3
1.3 Importance of different market system ................................................................................4
1.4 Role of opportunity cost to determine how organisation can make decisions......................5
1.5 Elasticity of demand and its importance in market interaction ............................................6
TASK 2 ...........................................................................................................................................6
2.1 Implications of pricing and corporate objectives on its operations.......................................6
2.2 How prices can be set in different market structure .............................................................6
2.3 Analysis how market structure and operational decisions could be affect its behaviour......7
2.4 How UK regulations affect to the market power of the business and how regulations affect
to the market power and enterprise.............................................................................................8
TASK 3............................................................................................................................................8
3.1 How structure of the UK economy change in 21st century and it affects to the business
environment of chosen enterprise...............................................................................................8
3.2 Tools for meeting macroeconomic policy.............................................................................9
3.3 Performances of UK economy in global market...................................................................9
3.4 How economic performance will create impact on Marriott hotel.....................................10
TASK 4..........................................................................................................................................10
4.1 Theory of comparative advantages.....................................................................................10
4.2 Advantages and disadvantages of free trade.......................................................................10
4.3 Impact of emerging market economies for developed economies......................................11
4.4 Consequences of the recent domestic and global economic shock.....................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
In respect to make effective functions and operations, there are several elements exists
that play important role for increasing profits and revenue. It is important to assess the future
demand so that fund requirement can be assess in effective manner at workplace. Hence, it is
important to identify objectives and growth of the nation (Jernigan, Noel and Lobstein, 2017).
With this aspect, present report based on the Marriott hotel which develops several kinds of
operations and functions such as accommodation, party booking, etc. In addition to this, they are
also deals to enhance different kinds of services in international areas to attract many customers
from different places. For gaining insight knowledge of the company, present report covers
economic problem of scarcity and allocation of demand that assists to manage country economy,
furthermore, it includes prices that are setting in different areas of the market for accomplish
corporate objectives. In addition to this, it also focuses on the UK performances for ascertain
results in global market with special indicators. Along with this, report also analysis emerging
economies that are developed for general aspects.
TASK 1
1.1 Economic problem of scarcity and demand resource allocation to manage economy
In the UK, there are several issues and problems occurs that create impact on its functions
and operations. In this regard, due to limited resources, the country face many problems that
impact negatively on its functions and operations. Hence, government also facing issue to
allocate resources in different aspects. Along with this, UK also face problem due to scarcity:
 Unemployment: It is the major one issue of UK that create big impact on their functions
and operations. In respect to allocate resources, this element widely impact on the hotel
industry (Manzerolle and McGuigan, 2014). Therefore, Marriott high impacted by this
element because there is lack of skilled employees which create major impact.
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 Reduction in the economic growth: Due to low economic growth, the nation has also
impacted that create major issue to operate several functions and operations. As from last
9 years, economic growth of the nation highly fluctuating so that it is the major element
which create impact on functions and operations (Bianchi and Andrews, 2015).
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Illustration 1: UK unemployment
Source: (Unemployment in the UK 2012, 2012)

1.2 Role of supply and demand in the economy and equilibrium for achieve objectives
In the nation, supply and demand are major element that create impact on functions and
operations of business. This is because, in UK equilibrium is the main issue that impact on their
effective results. In order to achieve goals and objectives, they have to understand demand of
several customers towards the products and services. As supply increasing with the price so that
high profit will be earn from suppliers. It creates negative impact because high cost occurs at
workplace (Whiting and Williams, 2013). In order to enhance customer base Marriott require
implement new things at workplace through they can accomplish desired results. In addition to
this, purchasing power also getting high so that values of the products also create effective
functioning at workplace. Along with this, low price of products and services creates several
benefits to the cost that increasing maximum number of people at workplace. Increasing demand
and supply place as per the prices that are curved upward and creates changes in the demand of
products (Killian and McManus, 2015).
Along with this, demand curve also move from opposite side when the products prices
has been changed. Hence, it could be stated that value of money required to placed that create
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Illustration 2: UK economic growth
Source: (Pettinger, 2013)

effective results and position for equilibrium point. In this regard, profits and revenue will be
increasing at workplace so that goals and objectives will be accomplish in systematic aspect.
Therefore, equal pricing determines by the people for consume products and services that
increase benefits as equal opportunity cost. Hence, high price assists to increase supply of the
company which develops target market and buyers also taking part to generate more money at
workplace. In respect to generate more money, profits and revenue will be increases at
workplace. With the help of more supply to develop the target market.
1.3 Importance of different market system
In the market, different perspective exists that assists to accomplish desired goals and
objectives to operate several functions. In this context, it is important for demonstrates pricing
with production decisions (Watson, McCarthy and Rowley, 2013). As results, there are different
kinds of market system exists that develop with its pricing:
 Perfect competition: In this kind of market system, there are several areas determines in
which large number of buyers and sellers exists who interact each other. It is very
effective and crucial aspect of the market system in which both possess alternative option
to purchase product and sell to customer in creative aspect. Therefore, decision based on
the all businesses who exist in the market. For example, Marriott, Hilton, etc. With so
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Illustration 3: Supply and demand equilibrium
Source: (Market equilibrium, 2017)

many securities' industry players, it is impracticable for any one associate to alter the
predominant price in the marketplace. If they endeavour to do so, steal and Peter Sellers
have unbounded alternate to pursue.
 Monopoly system: This is another kind of the market in which one enterprise operate
and set price for their products and services. In this regard, only one person will set their
products and services price to attract customers. Hence, organisation will easily gain high
amount of market share to accomplish their profits and revenue. For example, British
Petroleum which is the enterprise that selling high amount of fund in the organisation
(Felix, Rauschnabel and Hinsch, 2017).
 Oligopoly system: This system encompasses with more than two business so that they
are getting majority in the production system to develop effective results at workplace. In
this context, prices will be set without taking government participation. In the case of the
Marriott hotel which develops several kinds of operations and functions such as
accommodation, party booking, etc. While oligopolistic do not rich person the same
evaluation power as monopolists, it is accomplished able, without persevering regime
regulation, that oligopolistic will collude with one some other to set prices in the
aforesaid way a monopolist would.
In this case market is to be focus on new market and different market to increase the demand and
market share. All such market stipulation is help to change the economic condition and improve
the level of performance in market. The concept of possibility expenditure inhabit an important
place in economic theory. Opportunities cost is help to increase the market growth and help at
the time of economic development.
1.4 Role of opportunity cost to determine how organisation can make decisions
Opportunity cost assists to create high value in the products and services to accomplish
goals and objectives. In this regard, company possess several alternative option at workplace that
assists to meet with their goals and objectives in systematic manner (Ramaswamy and Ozcan,
2016). In addition to this, it also helps to express relative cost for several alternative programs to
meet with best option. It also signifies essential parameter to take wide range of business
decisions. Hence, the organisation able to accomplish goals and objectives. Analysis of the
competitors position can be determines as the availability of resources and cost. Etc. Therefore,
following are certain elements determines opportunity cost with role:
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 Opportunity cost also helps to assess relevant with scarcity and options available from
several alternatives. Main role of the business is to enhance their outcomes from different
perspective.
 It also helps to take decisions that are very creative and selected from different
alternatives. It is the systematic aspect that assists to check feasibility and make better
decisions (Quinton, 2013).
 Fact also develop at workplace that determines by the organisation to ascertain effective
functioning at workplace.
 It assists to increase productivity and economic system that are related with specialised
system of Marriott.
1.5 Elasticity of demand and its importance in market interaction
Elasticity of the demand is very important perspective that helps to assess economics
outcomes and increase responsiveness of the market. As results, quantity also assess that are
needed by the organisation. Right quantity of goods and services develop effective results in
Marriott. Therefore, it is important perspective for growth of the organisation:
 International trade: With the help of effective pricing, Marriott able to deliver their
efforts to perform several activities in the market.
 Determines policies of government: Elasticity also helps in developing price as per the
major factor of production.
 Factor pricing: Elasticity of demand also assists to develop price which is important
function of production (Pescher, Reichhart and Spann, 2014).
TASK 2
2.1 Implications of pricing and corporate objectives on its operations
Pricing is the important perspective that helps to develop major outcomes and results of
Marriott. Supply and demand of based on their goals and objectives. Hence, the organisation able
to create their brand image through assess perception of the enterprise in systematic manner. In
respect to set price, Marriott able to create awareness with implementing different tactics at
workplace. Hence, following are certain pricing objectives develops at workplace: Survival: Price need to be implemented for flexible growth and outcomes. In this way,
Marriott able to increase their sales with changes in the price requirement.
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 Profit: Pricing also possess effect that are occurred directly and indirectly at workplace.
 Sales: It is another innovative function that accomplish and encourage people for
increasing their sales through producing high with low cost. Hence, market share will be
increasing (Dessart, Veloutsou and Morgan-Thomas, 2016).
2.2 How prices can be set in different market structure
In the market, different kinds of system exist in which prices will be set in systematic
aspect.
Market structure Description Pricing decisions
Perfect competition This kind of market develop
their operations and functions
in which several numbers of
buyers and sellers exists at
workplace.
Pricing decision based on the
business performances and
their agreed decisions.
Monopolistic competition This kind of market decision
based on the only one firm
decision which deals with
several numbers of customers.
Therefore, pricing decision
will be based on the
independent seller that exist in
the market.
Oligopolistic competition This kind of business
determines when few
enterprises exists and compete
with each other (Stone and
Woodcock, 2014).
Hence, decisions will be made
through create dominant
position at workplace.
2.3 Analysis how market structure and operational decisions could be affect its behaviour
Following are certain types of market structure exists that could be impact on the
operations and functions of the market. Following are different types of system exists in the UK:
 Perfect competition: When the selected business operate their functions and operations
in perfect competition, they are able to deliver effective results and operations in the
market. Therefore, Marriott require skilled employees and perfect knowledge towards the
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market and their customers as well. There are different customers and competitors exists
so that pricing will be set accordingly (Fransen, Verlegh and Smit, 2015).
 Monopolistic competition: It is another types of perspective in which market structure
determines with several numbers of customers that are exists in the market and create
help to enhance effective functioning at workplace. When the chosen business operate
their functions in this perspective they have to operate their outcomes thorough short run
operations.
 Oligopolistic competition: In this regard, Marriott require operate their functions and
operations through making alternative options to make themselves as the market leader.
2.4 How UK regulations affect to the market power of the business and how regulations affect to
the market power and enterprise
In the UK market, there are different kinds of regulations exists that could be impact on
their functions and operations of Marriott hotel:
The Competition Act 1988: This act demonstrates several functions and operations that
are operated same by the different businesses. Hence, Marriott require implementation of price
as per all business decision.
The enterprise Act 2002: This act regulates different rules and regulations by the
government which followed for making competitive results at workplace (Erragcha and
Romdhane, 2014).
The enterprise and regulatory reform act 2013: In this aspect, new competition also
take place in the market that could be impact on competition and protection for consumer
functions.
TASK 3
3.1 How structure of the UK economy change in 21st century and it affects to the business
environment of chosen enterprise
In the 21st century, economy create major impact. This is because, it is advance
technology that assists to meet with targets and goals in effective measurement. Government also
support to the businesses to increase their operations and functions in the market. It is the crucial
element that helps to make profitable results at workplace. Therefore, they are providing
different opportunities and facilities that helps to expand business for develop their GDP as well.
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It is related with increasing and decreasing of the effect that could be impact to the operations
and functions of business. After 20th century, there are several fundamental aspects has been
taken that assists to meet with advance technology and increasing profitability in the large
market (You, Vadakkepatt and Joshi, 2015). 21st century is the important aspect through
organisation ascertain more opportunities at workplace. Therefore, the company has advantages
to deal with new concepts that are take place in the business. Further, Marriott can also assess
their customer to create several advantages.
In this context, Marriott also operating their functions and operations to develop their
profits and revenue at workplace in the systematic manner. With this regard, the country also
enhancing their GDP with taking customer attraction at workplace so that it is the creative
opportunity for hotel business to continuously expand their business operations at workplace. In
addition to this, in the 21st century UK progress more from the other countries so that they have
advantages to improve their performances with quality and quantitative aspects.
3.2 Tools for meeting macroeconomic policy
In respect to ascertain effective functioning and growth of the business, UK has several
advantages. There are different kinds of tools and techniques will be develops for maintain its
position and operations. Following are different tools exist that assists to meet with
macroeconomic policy:
 Fixed policy: This policy also assists to frame different operations and functions to create
several changes in the company. Government determines regulations which essentially
followed by Marriott.
 Exchange rate policy: This policy enhance worth of the domestic market which differ
from other currency. Hence, value of money also develops in UK regarding market forces
(Mackey and Liang, 2015).
 Monetary policy: This is another essential element that create several decisions and
implementation of the goals for changes in cash rates. Therefore, money is the major
element that could be impact on supply and demand.
3.3 Performances of UK economy in global market
In respect to develop profitability, government determines successful operations so that
they are able to deliver effective results at workplace. Following are major objectives exists that
assist to explain GDP growth:
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 Full employment:In respect to enhance operations and functions, full employment is the
major element that assists to accomplish desired objectives at workplace. Therefore, it
creates opportunities for enhance living standard of people. With the help of high GDP
growth, UK can develop their more profits and revenue at workplace.
 Price stability: Further, inflation rate also signifies to rise sustainability as per the
pricing. Therefore, effective measurement also ascertain for assess annual growth of
retail price (Godey, Manthiou and Singh, 2016).
 High growth of the economy: Growth of the country determines through its economy so
that changes in the GDP also create major impact on the organisation.
3.4 How economic performance will create impact on Marriott hotel
Within the UK, there are different types of international monetary elements exists that
assists to increase business opportunities for enhance their functions and operations. With this
regard, in the global market, economic relationship will be strong that helps to serve proper
functions and operations for creating additional benefits. It also helps to accomplish desire
results at workplace. With the aggregate business activities, the chosen organisation can easily
ascertain their more profits and revenue that are beneficial for the business unit (Wolny and
Charoensuksai, 2014). In respect to make precious growth at workplace, British economy will
easily expand their functions and operations in the market by 2017. Beside this, UK is the only
market where strong position will be maintain in successful aspect. EU also importing their
performances and operations in the systematic aspect for international growth. In the
international monetary fund, UK easily develops their profits and revenue around 15% which
make effective functioning in 2018.
TASK 4
4.1 Theory of comparative advantages
In respect to make comparative advantages, importance need to be included at workplace
in systematic aspect. It assists to attain comparative measurement at workplace that make
effective functioning in the business environment. In this context, comparative measurement
develops by David Ricardo's illustration in which two country determines their productivity in
which cloth and wine two elements determines creative results and outcomes at workplace. In
addition to this, Adam Smith also defines productive results at workplace to make creative and
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