Assignment Sample on5IB004 Economics of Managerial Decision Making
Question 1
The Sales Trends in UK Supermarkets
UK supermarkets are continuing the trend of highest sales growth in the year 2020 according to retail market sales throughout the world. By becoming online sales popular to the individual as the smaller drop of physical stores, the cell is observed according to UK supermarkets. According to a cell structure report, the sale amount of UK supermarkets is 10.6% in the year 2020 in the month of February. After that, within the period of June 2020, during the fourth week, the highest level of UK supermarket sales growth has picked the level of 14% (Aluko and Knight, 2017). The amount of online saree shopping has increased by double the 41% compared to the other year of 18% during past years. Sometimes the retail stores also provide additional discounts and offer a free home delivery facility to increase their cell structure and the amount of online selling. But during the period of panda make of past years, the cell structure of rice and grains, and dry products, aur packet product, and the toilet paper showing the result of declining sales by nearly 15%.
Supermarket industry and showing a highly competitive environment within the past few years according to consumer choice and shopping habits to change the environment. Sometimes affect the government policy and the applicable taxes to the certain product and the consumer interest to buy this product are the main leading factor for fluctuating within the environmental awareness and transformation of UK market trends. The amount of online grocery relating to the UK market throughout the March of 2020 is listed as 2790.81 dollars, excluding all types of taxes.
Question 2
- Leading Companies of UK Supermarket
There is an enormous number of supermarkets and grocery stores are established within the UK market. But according to the financial statement and the annual revenue structure of the particular market, some leading organizations are performing as the indicator and leader of the cell structure (Burgoineet al. 2017). UK supermarkets are generally dominated by “Tesco, Walmart, Sansbuirry and Morrison” by those leading organizations. Nearly 73.2 % of the total annual sales of grocery markets according to the 12 weeks ending from January to 2015 to 2020 are captured and maintained by those for big leading organizations within the UK supermarket. The supermarket chain is responded to by the grocery cells doors are operated by the physical store visit shopping as well as online shopping also. After the pandemic situation during the last year, the amount of physical cells has reduced to a certain amount, and online shopping has increased to double the rate.
- Market structure of UK Supermarket Operation
The UK supermarket is the particular example of structuring a competitive market structure that is dominated by a couple of numbers of suppliers and the retail store to the particular market (Chepuliset al. 2018). This market corresponded with the three main particular characteristics of the selling amount. The first aspect of this market is determined as this market is bleeding by a few numbers of organizations who are recognized as the main suppliers of the market. The second aspect of this particular market is the oligopolistic firms, and the retail chain of this market is generally interdependent on each other. Determination of this market is considered that there are no such new forms and the organization that can be established as an interdependent aspect of this particular market. The big organizations mentioned in the earlier section captured around 75% of the total market share and consequently controlled the UK supermarket chain 2000 influenced by the oligopolistic supermarket structure within the lower prices and excellent quality service.
- Comparison and Contrasting Within the Market structure According to the Price, Output, and Profit
| Characteristic | Perfect Competition | Pure Monopoly | Monopolistic Competition | Oligopoly |
| Amount of organization in the market | Many organizations are attached to the market | Only one organization is related | Different organizations are attached bus the perfect competition is not available. | Few organization leading to the market |
| The capacity of the organization to Control Price | No one | High (Clifford Astburyet al. 2019) | Sometimes | Sometimes |
| Barriers to entry in the market | No barriers to the particular market | It is entirely dependent on the applied rules of government | Lesser amount | Enormous organization |
| Product differentiation | A very little amount of organization | No product is associated with the direct comprehensive | It is based on the improvements perceive the difference in the product relatedness | Some differences |
| Contrasting Dimension | It generally based on the farm products such as wheat cons | Utilities different of the gas service water service and cable service | It based on the written specialty and clothing | This type of organization and dependent on the automobile Airlines grocery, and manufacturing |
- Major Barriers to Entry of UK Supermarket
It is clearly documented that the UK supermarket industry is operated and needed by the four big industries within this particular perspective. It is not so easy to penetrate within this particular market and establish a new retail chain within this structure. There are three main barriers that are expected as the main barriers to entry within this market (Cocciaet al. 2019). Those barriers are documented as the intense competition within this leading organization, low profitability by selling the grocery products, and the evolution of economic scale analysis and viscosity of new stores to the particular side of correspondent for the main barriers of this market. UK supermarkets are documented as the oligopolistic market structure that is dominated by future organizations within their joint market size, and the high school annual revenue becomes a barrier to the newly established business chain.
Question 3
- COVID 19 Effect of the UK Grocery Retailing
Covid-19 tandem is directly related to the sales amount and the operating business of the grocery retailing within the UK dimension. This process is firstly affected in Europe and widespread throughout the outskirts of the country like the stock Rises. When the lockdown period is beginning, then the supermarket and delivery service become healthy according to the increasing demand and the crisis within the particular consumer (Efstratiadiet al. 2019). As the lockdown period started throughout the country, the store shopping remained closed, and the delivery system was just increased to write a multiple series. In the hyper-local and alternative Food Project, the system is waiting for the 162 6700 customers within a day. Supermarkets are very clearly and efficiently staffed. They are providing a system of food distribution according to their own abilities within the local development and the other food product. Sometimes does tour capacity of a Supermarket is just exceed the demand of the food but according to the conclusive approach of the overall increasing demand is not up to the mark throughout the annual cell structure of the comparative advantage within those organization. The survey according to the leading retailers of the UK and just behind the fresh statistics of the essential inside and the Accepted and dramatic and unproductive transmission within the 21% Drop throughout the overall GDP of UK. The determination approach and Pupil confined to their demanded product and the requirement of positive import those are related to the covid-19 for the grocery detailing a distribution to the panel distribution as well as over or discrimination effect throughout the potential determination.
Besides the increased tendency of home delivery as the shock visited stores completely stops, the potential distribution of grocery products and the increased tendency of product using dimensions are literally impacted, and consumption habits of the people are entirely changed during this situation. It is clearly observed that rather than junk food consumption habits the Fresh Food consumption and using of that product is highly increased tendency throughout the population
- Relevance of the Economic Theory For Firm Operating UK Grocery Retailing
It is generally concerned about the spelling of products and the concern about the business development within the involvement of cell structure and finished goods throughout the different retail stores (Gullo and HAFNER, 2017). It is considered a major economic dimension of the national statistics within the UK perspective that 339 billion sales rate within the particular year according to the estimation of 2.8 million people involved within the UK retail farms. Enormous numbers of theories are related to the operating processes and the business application within the retailing and selling structure of the relevant information.
Cyclic Theory– it is generally concerned about the retail environment and the competitive practices of the particular organization that is slightly followed and the repetitive patterns within the clear identifiable stage of the cyclic movement, and the approaches of business concern of the particular organization motivation chain.
The wheel of retailing theory is the most common cyclic process that was proposed by McNair in the year of 1958. It is considered that the world’s oldest theory of retailing changed oats is operated within the dimension of lower-cost strategy and accepting the profit analysis margin to the business approaches.
Noncyclic theory– non cycle theory is the rise of conflict theory that is considered about the Marxist approach and about the environmental processes and older ideas developed within the development ground.
By considering both the cyclic and noncyclic theory within the retail business transformation of the UK perspective, it can be described the developmental as paid, and the purpose stage analysis is concerned about the consumer interest and the business organization development within the market demand and the proper processing dimension.
Environmental Evolution Theory
This theory is generally considered about the environmental evolution that is related to the particular situation and market analysis within the microenvironment condition. Do this report is continuous ke describe the covid-19 impact and the status of business structure and the supermarket sales within the UK market should a huge transformation within this particular period (Gullo, 2021). The environmental evolution theory is the particular explanation about the rise of the discount within the supermarket and more popular decision ground and the ages of low price advancement during this pandemic situation. There are advantages as well as weaknesses both are operated to eating this particular Revolutionary theory of supermarket analysis. The format of those industries of UK supermarkets changed from the store format to the chain Store format. UK supermarkets are generally considered about the store-based format, those are considered to the online application of the retail store those our correspondent for the online grocery shopping. But during the period of the pandemic situation, those store base formats were IntelliJ changed to online shopping as well as home delivery systems (Jones et al. 2018). It cannot be clearly demonstrated that the evidence of profit scale analysis and the margin analysis of the particular market is developed and considered for the market situation and change tendency of shopping strategy within the correlated consumer, by discussing the prophet ground Irwin related to the hygienic products selling tendency and reducing the effect of the different luxuries product. Please period on the organization are related to the strategy for lower of employment status and reducing the cost of experience within their organization. It is clear evidence of the decreasing GDP throughout the country. Lower investment to the particular business and the decreasing condition of pandas is also focusing on the cost minimization and the profit maximization aspect of the related organization. There is no certain business strategy applied to the pandemic situation as well as the profit maximization dimension due to this situation.
Question 4
The UK retail market is generally showing at the end of the sesame changed throughout the generation of development and impacted within the retail business of operated and selling aspect (Kolokotroniet al. 2019). Within the ground of documented change, it clearly shows that the fundamental aspect of place taking and spread within the widespread factor of the consideration the agreed members, those related to the influencing factor and biggest impact of the UK grocery sector, are attending within the future development scope.
The Rise of Discount
The concept of the discount within this particular business market is generally considered about the increased popularity and adaptation of new offerings as well as the changing perspective a business and retail chain just show that trained and systemic effect of the father expanding ground and retail business inside of the UK market (Mylonaet al. 2017). In the perspective of future dimensions, it will be described as the better if it of, the more online business strategy as well as the uncertainty drive of the related politics and the policies of the economic development structure.
TASK 2
Question 1
Effect of covid-19 lockdown in bulbs the greater amount of typical shock to the supply chain and demand during the UK business market, especially in a Supermarket chain. The spreading of the covid-19 impact, including the different government response and the lockdown effect, is related to the increasing tendency of business DM and non-essential closing criteria of the Home Staging and the use of huge supply shock. The policymaker and The Economist argue within the government stimulus and usual response for a shocking cause that is related to the lack of demand which is opposed to the supply chain. The contribution of the supply chain is related to the demand shock and the effect of demand efficiency discussion during this pandemic period.
The covid-19 pandemic situation has generally disrupted the economic condition throughout the globe. The policy measures which are closely related to the importance of supply and demand are impacted within the productive capacity and the growing business operation policy (Rohwer and Topić, 2019). Non-economic reasons in the goods and services are broken within the international supply chain and reduction of labor inefficiency during the contamination measure. The demanded stimulus and the income received, and the higher growth to the economic uncertainty is casually disrupted within the effect of supply chain disruption. In the ground of financial equilibrium, all are decreasing the tendency to increase the GDP label as well as annual sales revenue of the following organization. The fundamental prediction and the information of supply chain and the considering emergence of shopping technology are related to the plant price change and demand consistently throughout the particular market.
Question 2
The business criteria of the price elasticity and the demand-supply regarding the decision approaches of price goods are impacted and hamper during the period of covid-19. Change during the prize structure and economic structuring of quantity demanded depending on the coefficient regarding the price elasticity. According to the financial analysis of tri structure, it is concluded that when the quantity of demand is increasing, if the organization is operated to increase the price of the product, the total expenditure of the consumer will be affected, and the annual revenue of the form will rise. Then the particular product of this organization will undergo an elasticity compound that affects the price structure, and it will suddenly feel the shock of falling its total revenue. Instead of increasing the business change, this organization will face third in-laws and decreasing amount of total revenue structure, including the decreasing tendency of demand of that particular product. On the other hand, the demand of the product within the particular organization undergoes an inelastic situation when the price will increase, and it raises the total revenue (Rudolf et al. 2019). The profit-maximizing expectation of the price commission is directly related to the elasticity of the demand for that particular product.
According to the managerial decisions of the price elasticity and the product demand, it will be concerned as the organization always maintains the price level of a particular product up to a certain level. This will be an entirely wrong decision to increase the price of a particular product beyond the expected level. This price estimation and the increasing amount of profit will consider market transformation and sudden decrease of the demand.
Question 3
| Output (Units) | Changes in Quantity | Total revenue (£) | Changes in Revenue | Total cost (£) | Changes in Cost | Profit | Marginal revenue (£) | Marginal cost (£) | Change in profit (£) |
| 0 | 1 | 0 | 6 | 3 | 2 | 0 | 6 | 2 | 100.00 |
| 1 | 1 | 6 | 6 | 5 | 3 | 1 | 6 | 3 | 87.50 |
| 2 | 1 | 12 | 6 | 8 | 4 | 8 | 6 | 4 | 55.56 |
| 3 | 1 | 18 | 6 | 12 | 5 | 18 | 6 | 5 | 35.71 |
| 4 | 1 | 24 | 6 | 17 | 6 | 28 | 6 | 6 | 20.00 |
| 5 | 1 | 30 | 6 | 23 | 7 | 35 | 6 | 7 | 2.78 |
| 6 | 1 | 36 | 6 | 30 | 8 | 36 | 6 | 8 | -28.57 |
| 7 | 1 | 42 | 6 | 38 | 9 | 28 | 6 | 9 | -250.00 |
| 8 | 0 | 48 | 0 | 47 | 0 | 8 | #DIV/0! | #DIV/0! | #REF! |
The criteria of the profit maximization within the provided data of the particular organization to calculate the total revenue and the changed revenue include the change dimension of the profit percentage is calculated by using Excel analysis to estimate the changes of the business operation of the particular organization. The consideration ground of the quantitative analysis is relative to the profit maximization dimension by estimating the particular time period business analyst.
Question 4
- Pay-Off Matrix
| Firm 2 | |||||
| Pollute | Not pollute | Firm 1 Pollute | Firm 2 Pollute | ||
| Firm 1 | Pollute | 50000 | |||
| Not pollute | 70000 | ||||
| Firm 1 Pollute | 90000 | 5000 | |||
| Firm 2 Pollute | 5000 | 90000 |
- Nash equilibrium
- Cooperative Outcome- The Cooperative outcome of this particular business process is documented to be different from a business investment plan and considering appraisals to be involved within the business and the related profit of four different circumstances. The internal profit rate of the palms has internally cooperated with each other.
- Game Theory is generally considered for the statistics situation analysis with the competitive behavior including the action of bargaining activity and the management process of pricing Static and revenue sharing analysis. The ground of supply chain and designing process within the criteria of capacity management and build the design, of course, related to the analysis and metric establishment of the game (Simpson et al. 2019). There are two strategies to incorporate for the managerial decision within the dimension of the year.
- Strategic decision of the competitive behavior analysis between the desirable outcome.
- The series analysis of possible Strategies and the predicted movements of competitive out
Question 5
- Farm one is obviously choosing the provided investment proposal by the farm because investment is limited to a certain amount, and no other hidden costs are involved within the particular investment proposal. Decide that there is no other hidden cost, and the return and the period of provided return are also secured within this provided plan. By discussing the business advantage in farm one is always suggested to involve and even within a particular proposal.
- From the top project A and project B, according to the researcher’s perspective, one should invest within project B. Because his project is issued a lower rate of invested capital, that is 61000, and the internal rate of the return is also higher than the project. When project is documented with a Return rate of 6%, then project B is documented as the return rate of 8%. It is clearly shown that 2% higher of return which is objective by project b. then the farm one should invest it within the project according to the investment appraisal technique.
Reference List
Journals
Burgoine, T., Mackenbach, J.D., Lakerveld, J., Forouhi, N.G., Griffin, S.J., Brage, S., Wareham, N.J. and Monsivais, P., 2017. Interplay of socioeconomic status and supermarket distance is associated with excess obesity risk: a UK cross-sectional study. International journal of environmental research and public health, 14(11), p.1290.
Chepulis, L., Mearns, G., Hill, S., Wu, J.H., Crino, M., Alderton, S. and Jenner, K., 2018. The nutritional content of supermarket beverages: a cross-sectional analysis of New Zealand, Australia, Canada and the UK. Public health nutrition, 21(13), pp.2507-2516.
Clifford Astbury, C., Penney, T. and Adams, J., 2019. Comparison of individuals with low versus high consumption of home-prepared food in a group with universally high dietary quality: a cross-sectional analysis of the UK National Diet & Nutrition Survey (2008-2016).
Coccia, G., D’Agaro, P., Cortella, G., Polonara, F. and Arteconi, A., 2019. Demand side management analysis of a supermarket integrated HVAC, refrigeration and water loop heat pump system. Applied Thermal Engineering, 152, pp.543-550.
Efstratiadi, M., Acha, S., Shah, N. and Markides, C.N., 2019. Analysis of a closed-loop water-cooled refrigeration system in the food retail industry: A UK case study. Energy, 174, pp.1133-1144.
Gullo, P. and HAFNER, A., 2017. Thermodynamic performance assessment of a CO2 supermarket refrigeration system with auxiliary compression economization by using advanced exergy analysis. International Journal of Thermodynamics, 20(4), pp.220-227.
Gullo, P., 2021. Impact and quantification of various individual thermodynamic improvements for transcritical R744 supermarket refrigeration systems based on advanced exergy analysis. Energy Conversion and Management, 229, p.113684.
Jones, N.R., Tong, T.Y. and Monsivais, P., 2018. Meeting UK dietary recommendations is associated with higher estimated consumer food costs: an analysis using the National Diet and Nutrition Survey and consumer expenditure data, 2008–2012. Public health nutrition, 21(5), pp.948-956.
Kolokotroni, M., Mylona, Z., Evans, J., Foster, A. and Liddiard, R., 2019. Supermarket energy use in the UK. Energy Procedia, 161, pp.325-332.
Mylona, Z., Kolokotroni, M., Tsamos, K.M. and Tassou, S.A., 2017. Comparative analysis on the energy use and environmental impact of different refrigeration systems for frozen food supermarket application. Energy Procedia, 123, pp.121-130.
Rohwer, L. and Topić, M., 2019. The communication of Corporate–NGO Partnerships: analysis of Sainsbury’s collaboration with Comic Relief. Journal of Brand Management, 26(1), pp.35-48.
Rudolf, M., Perera, R., Swanston, D., Burberry, J., Roberts, K. and Jebb, S., 2019. Observational analysis of disparities in obesity in children in the UK: Has Leeds bucked the trend?. Pediatric obesity, 14(9), p.e12529.
Simpson, M.C., Chatzopoulou, M.A., Oyewunmi, O.A., Le Brun, N., Sapin, P. and Markides, C.N., 2019. Technoeconomic analysis of internal combustion engine–organic Rankine cycle systems for combined heat and power in energy-intensive buildings. Applied Energy, 253, p.113462.
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