Evaluating the Contemporary Business Environment Assignment (GC01761)

Abstract

This is evaluating the contemporary business environment report. In this report, the discussion is based on UK’s market structure and Penny Market’s effect on UK’s economy and the Covid-19 pandemic. Market Structure means how companies are abstracted and classified based on examples of accessories they vend and how their activities are affected by outer factors and materials. There are four types of market structure which are perfect competition, oligopoly, monopolistic competition and pure monopoly. UK’s market structures most of the time follow an oligopoly structure. Then the economic factors of the UK like demand and supply, interest rate, taxes and the inflation rate has a great effect on Penny Market also. Also, the Brexit issue has an impact on the Penny market and Covid-19 has also an impact on this market.

Table of Contents

Abstract

1.0      Introduction.

2.0 Discussion and Analysis.

2.1 The Various Market Structures.

2.2 The Market Structure of the UK’s Grocery Industry.

2.3 Economic Factors of UK and How They Will Affect Penny Market

2.4 Likely Impact of Brexit on the Penny Market’s Business in the UK.

2.5 Impact of Covid19 on Penny Market should it Invest in the UK.

Immediate impact

Future Impact

3.0      Conclusion.

4.0      Recommendations.

Reference.

1.0  Introduction

In the UK, the market structures are very different from other countries and also unique.  In this report, there is mentioned Penny Market which is an app that offers online grocery shopping that also offers delivery services (Remiz, 2018). Penny Market has a great impact on UK’s economic factors also in Covid-19 pandemic. This report is all about the structures and Penny Market’s role.

2.0 Discussion and Analysis

2.1 The Various Market Structures

Market Structure means how companies are abstracted and classified based on examples of accessories they vend and how their activities are affected by outer factors and materials. According to Tylor (2018), various kinds of market structures are very helpful to understand the qualities and characteristics of different markets. There are four types of market structure in business. These are perfect competition, oligopoly, monopolistic competition and pure monopoly.

Perfect competition: Perfect competition means differentiation by various customers and vendors. In perfect competition, there are a huge number of customers and vendors (Kite, 2018).

Monopolistic Competition: Monopolistic competition defines as a market structure that has a huge number of small firms that facing each other. Besides, in monopolistic firms, the competition sells the same but extremely separated products (Ross, 2017).

Oligopoly: An oligopoly structure is very limited in competition and it is controlled by some firms. They can cooperate with or face each other to practice their joint marketability to rise up values and achieve more benefits (Myers and Tauber, 2017)

Pure Monopoly: When one firm dominates the whole entire business, there the monopoly remains. The firm and business are basically the same. This firm is the only manufacturer of a product, and there is no alternatives (Bodek and Dolgopolov, 2016).

2.2 The Market Structure of the UK’s Grocery Industry

The supermarket industry in the UK has various structures but the oligopoly is the most used structure in grocery shops. An oligopoly structure is very narrow in competition and it is dominated by some firms. This means the firms which are dependent on each other and many big firms are controlled. According to Luis (2018), interdependent firms mean firms that are affected by the values and output set by each other, therefore values suppose to stay inflexible in the state of UK supermarkets. Oligopolies may be recognized by treating focused proportions, which demesne the ratio of whole trading share ruled by a particular number of firms. It is also obtained that many farmers and cultivators are bearing as an outcome of the rising monophony ability of the great supermarkets.

Besides, this market structure has a basic feature which is a great obstacle to access, which also means the tremendous frugality of the range occupied by these grocery markets, agreeing for similarly a small approximate expense and consequently for such small values for consumers (Bodek and Dolgopolov, 2016). Basically, in an oligopoly strategy, it is very uncommon to see valueless competition, as everyone knows the fact that cost competition is received behind by the obedience of interdependence. In the condition of the grocery markets, loyalty cards such as Waitrose Card, TESCO Club card, Nectar Points, etc online ordering, free home delivery, and guarantees are all samples of the path in which they face on a non-value basis (Economics Online, 2020).

2.3 Economic Factors of UK and How They Will Affect Penny Market

Economic Factors defines as a factor that affects finance and involves tax rates, interest rates, laws and regulations, insurances, salaries, and governmental operations. According to Currie (2019), all the factors are not directly related to the business market but they affect a lot in the economic statement and values of the market. Economic factors that affect the business market as it is some of the other resources related to business and impact urge of business like fatigue and its expense is always an agitated economic factor that impacts the finance. Many nations have introduced outsourcing of exertion from different nations.

Interest Rate is the main factor that impacts the fluidity of money in the resources. An upper come-back on commission will drag financiers. Mark (2018) stated that, for the improvement of the company, management plays an essential role although it is not known as an economic factor rather than it is known as a factor that affected the economic factor and urges the market to produce the highest income. The chartered roles are arriving growingly automated, logical abilities are becoming more complicated than ever. In order to give better economic instruction about the incoming life, it is complicated that everyone feels each the present formula in which everyone manages, and possibly progressions in the future (Lee, 2017). There are many economic factors that will Penny Market in the UK…………………..

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