MANAGEMENT ECONOMICS

Posted on February 26, 2022 by Cheapest Assignment

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Introduction 

The report will intend to estimate respective categories of economizing data in association with the multinational and organisational contexture. The report will allow riveting on handing a deep conception of the market structure in which Mark and Spencer operate. The report will additionally attempt to dissect the characteristics of the market architecture. grounded on the nature of the market framework, the report will recommend the efficacity of government interventions within business patterns. 

ASB/ABJ 4440 Consumer Behaviour in a Global & Digital World

Role of management in an economy 

The process of management with the help of which a varied range of managerial and economic factors and different types of related aspects could be managed in an efficient manner for any business sector organisation is known as Management of Economics. With the effective use of a varied range of analytical tools with proper support from different types of technological instrumentations, the process of management of economics could be executed in an efficient manner. Different types of critical issues in relation to the strategic decision-making factors could be resolved with the help of the management of economics. It could be stated that the management of economics falls under one of the major segments of macro-economic which focuses on a wide range of theories related to economics that suits the business operations in any business marketplace. Considering the economic conditions of the marketplace, effective assistance could be provided to the business organisation for the efficient optimisation of different pricing strategies. The critical roles of management of economics are stated below in an efficient manner:

• The inspection of economical patterns: It could be stated that to effectively analyse different patterns of economics that are set down in the macro-level economic environment, management of economics plays a critical role in providing assistance to any business organisation in terms of concepts related to varied economical patterns within the market economy. In today’s business world, the business environment is changing at a rapid rate. Effective analysis of these changes could be carried out for the business organisations using the process of management of economics (Keller, 2015). 
• Pricing and decision-making strategies: One of the major roles of the management of economics is to assist the business operation with extensive support in terms of strategic decision-making processes and identification of the best pricing strategy that could fit the business operation in the current economy. Different types of macro-economic indicators are recognised and the change management process within the economical structure of the market is closely analysed, based on which the process of management of economics helps in making major strategic decisions for the company to gain profitability within the current economic condition (Abdurakhmanova et al., 2020). 

MBA Integrated Communication Assignment 1

Overview of Mark and Spencer 

Mark and Spencer are considered as one of the famous and branded retail market chain of the UK that operates its business across the globe. The company has been successfully listed on the London Stock Exchange. In the year 1884, the company was established by Michael Mark and Thomas Spencer and has now more than 1000 stores across the globe. The company has more than 78000 employees operating in its various units across the globe and in the year 2020, the company has an annual revenue of 10181.9 million GBP (Mark and Spencer, 2020). 

Market Structure Mark and Spencer’s faces 

Generally, Mark and Spencer as stated earlier in this report are one of the topmost retailing brands across the globe. Thereby, it mainly operates its business in the Oligopoly market structure of the retail industry in the UK and across the globe. Its current competitors are ASDA, TESCO, Sainsbury and many more. As stated by the author Indounas (2018), one of the major characteristics of the Oligopoly market structure is that business organisations of mainly large-scale business models operate within this market. Thus, it could be clearly stated that pricing strategies of different types of retailing products like grocery foods, clothing, household appliances and many more vary from organisation to organisation operating within this oligopolistic industry. The different organisations operating within the retailing industry of the UK and across the globe including the business organisation named Mark and Spencer exhibit quite a dominance within this industry (Parenti et al., 2017). 

MBA Integrated Communication Assignment 2

Analyse the market it has been operating in ever since its inception 

Mark and Spencer one of the famous retail brands of the UK and across the globe when founded in the year 1884, since its inception has been operating in an Oligopoly market structure within the retail market of the UK and also in the international retail market. It could be stated that the market structure of the Oligopoly is quite unique and different from the other kinds of market structures in which every other industry operates. There are varied ranges of pivotal characteristics of this market structure that affects the strategic decision-making processes of the companies which execute their business operations within this marketplace. The various characteristics and its effective analysis of the market structure are stated below:

• Competitions: High level of competition is one of the major pivotal characteristics of an Oligopoly market structure. As stated by the two authors named Capobianco and Gonzaga (2017), the competitive rivalry among the dominant business organisations within the marketplace for attracting customers is comparatively much higher than in other market structures. The retailing brands of the UK and across the globe have observed some dominant business organisations that provide tough competition with each other in this oligopolistic market structure. Some of the reputed organisations that dominate the retail industry of the UK and across the globe are TESCO, ASDA, Sainsbury, Walmart, John and Lewis and many more. They provide tough competition with a business organisation named Mark and Spencer while operating in this industry. Thus, business organisations like Mark and Spencer, TESCO, ASDA, ALDI, Sainsbury and many more find a hard time gaining a competitive advantage while operating in this oligopolistic market structure. 

MBA Integrated Communication Assignment 3

Figure 1: Competition in the UK food Market

(Source: Gonzaga, 2017)

From the adobe figure, it is clear that the UK retail market sector experiences s huge competition while operations of retail businesses. This is one of the pivotal characteristics of the Oligopolistic market in which the company named Mark and Spencer operates its businesses across the globe. 

• Price Rigidity: Rigidity in the pricing systems and the pricing strategies of the products in the retail industry is another major and pivotal characteristic of the Oligopolistic market structure. It could be seen that in the oligopolistic market structure, due to the presence of large-scale profitable business organisations, price wars in relation to the products is a common scenario of this market structure. The same goes for the retail market industry of the UK and across the globe. As it could be found that along with Mark and Spencer, there are companies like TESCO, ASDA, Sainsbury and many more that dominate the market, price wars are common between these companies making the prices of the product rigid in nature (Alothman and Alqahtani, 2020). 
• Inappropriate pricing behaviour as per the statements of the author’s named Yang et al. (2017), the competitions within the market featuring oligopolistic characteristics shows interdependencies between the various competitive business organisations. It could be analysed that one of the pivotal characteristics of this oligopolistic retail market industry is the absence of a proper pricing strategy of the product opted by the retail business firms. As the competitions within the business firms like Mark and Spencer, TESCO, ASDA, ALDI, Walmart and many more are generally very high, the companies operating within this market sector opts for the pricing strategy that could easily overpower the pricing strategies of their competitors. This is mainly carried out to maximise the profitability structure of the company within the marketplace. Thus, it could be stated that a proper pricing strategy for retail products does not last for much time within this industry.
• Advertisements: It could be stated that for effective marketing campaigns, advertisements are considered to be one of the most effective marketing tools that determine the profitability and growth structure of business organisations. Advertisements are the pivotal characteristics of the oligopolistic market structure. In a market structure where large-scale business firms dominate in the market sector and the presence of such dominant business firms enhances the advertisement strategies of companies like Mark and Spencer. These companies use different types of aggressive advertisement strategies to attract customers and enhance their dominance level within the marketplace. According to the opinion of Ara et al. (2017), dominance in marketing advertisement campaigns are one of the common characteristics of this oligopolistic market structure. 
• Entry-level barriers: There are high barriers to start-up companies entering an oligopolistic market structure.  The various characteristics of the Oligopolistic market structure make the entry-level barriers much tough to cross for small companies. As per the statements of Neary (2016), in the retail market industry, a high amount of funding is required to effectively compete with the dominant players of the market. Thus, it could be analysed that for small organisations, operating business in the retail industry is a much tougher process. 

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Why does the Mark and Spencer company operate in one of the market structures i.e. oligopoly, monopoly? Discuss 

Mark and Spencer could be considered as one of the most famous retailing brands in the UK and across the globe. As stated earlier in this report the company in the retail sector of the industry operates in an oligopolistic market structure. With a high capital investment and huge dominance over the industry, there are other reasons that could clearly define the reason behind Mark and Spencer operating in an Oligopoly market. The reasons are:

• High Market revenue Share: The company named Mark and Spencer is one of the leading retail brands that have a market revenue share of 3.1 per cent of the UK’s retail grocery market from the year 2017 to 2020. The company in the year 2020 has a global revenue of 10181.9 million GBP. This is comparatively high and is one of the characteristics of being in an oligopolistic market structure. 

Figure 2: Global market revenue of Mark and Spencer

(Source: Statista, 2020)

• Presence of a few dominant companies: In the retail market sector of the UK and across the globe, there are a few companies that dominate the market. Similar to Mark and Spencer there are other big companies like TESCO, ASDA, Sainsbury, ALDI and many more that dominate this retail industry. Thereby, making it an oligopolistic market structure (Jackson and Jabbie, 2019). 

Figure 3: Top Retail Market Chain of the UK

(Source: Statista, 2020)

Will the company operate in a different market structure in its history? 

There are different types of legal proceedings and a wide range of press coverages that effectively states the business operations of Mark and Spencer in the earlier days. When the business organisation named Mark and Spencer first started its business operations early in the year 1884, there were few retailing companies that were operating their business in the retail industry at that time. Mark and Spencer, through its effective product quality and marketing strategies, has quickly gained market customers and developed a brand identity of its own. As the presence of other such competitors is quite low at that time within the retail market place, thus the company name Mark and Spencer operated in the monopolistic market structure of the UK retail market place. As because at that time, Mark and Spencer have the maximum share of revenue within the retail marketplace of the UK, an oligopolistic market structure was present at that time within the retail industry. Due to the presence of fewer competitors within the market place, the company named Mark and Spencer enjoyed the features of a monopolistic market structure (González et al., 2019). 

HI6008 Business Research – Research Method

Discuss the characteristics of its previous market structure

If compared with the oligopolistic market structure, the characteristics of the monopolistic market structure are considered to be quite unique and opposite. Effective controlling of the pricing strategies is one of the major differences between a monopolistic market structure and the oligopolistic market structure. The different states that pricing controls of the monopolistic market structure are much high if compared with the oligopolistic ones. There are different other characteristics of the monopolistic market structure that makes it quite different from that of the oligopolistic market structure. The characteristics are stated below in an effective manner:

• Entry and Exit process: In monopolistic characteristics of the market place, a wide range of associated barriers could be found with the entry and exit processes of different business companies operating within this market structure. In a monopolistic market structure, only a single company operates within the market industry. The dominance of such a company is much high. As a result, the market entry process for small-scale business organisations is mainly controlled by the organisation that dominates within this industry. Apart from the dominance of a single organisation, there are various government rules and regulations that control the exits and the entry process of the business organisations. Patents, trademarks, operating costs are the associated factors that control the entry process as well as the exit process of the small-scale business organisation (Bertoletti and Etro, 2017). 
• Single Supplier: The presence of a single company that dominates the market industry is one of the major characteristics of the monopolistic market structure. The product demands and the pricing strategies of any particular product are mainly determined by that single dominant business organisation in any sector of the industry. 
• High profit: It could be expressed that in the monopolistic confrontation and market framework, the potentiality of any business organisation in terms of profit income maximises numerous times. With diminutive or no contention within the market and a high-profit share, the profit configuration of the business organisations improves to a proverb reach (Dhingra and Morrow, 2019). 

Advanced Operations Management (AOM)

Considering the nature of the industry in which the firm operates 

What do you think operating in a different market structure is more optimal for this firm? Discuss 

Based on the current macro-economic scenario of the UK and across the globe, it would be of much greater profit if the company named Mark and Spencer operates within a monopolistic market structure. There is evidence of global economic disruptions and oligopolistic market structure within the retail industry is experiencing a huge competitive rivalry. This may weaken the profit structure of Mark and Spencer. Whereas operating in a monopolistic market would help the company to develop a new and unique product that can enhance the profitability index of the company. With a high capital investment and a unique brand identity, the company has the capability to operate in a monopolistic market and maximise the profit structure. 

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Would you suggest greater/lesser government intervention? Discuss 

A wide range of government policies and legal laws are termed as an intervention to business practices. The retail market industry of the UK must comply with all the safety acts stated by the government for protecting the rights of the public. For example, “the Consumer Protection Act” maintains the standards of the products and safeguards customers from fraudulent products in the market place. There are sustainability laws like “the Environment Protection Act” which every company needs to comply with while operating their businesses. These laws are for the safety of the society but enhance the operational cost of the company, which, in turn, makes the price of the product much costlier for customers. Thus, it could be stated that medium level government intervention is required within the business practice which can both safeguard the customers, society and also makes the business operations much easier for the companies. 

ASS060-3 NEW Disability Politics

Conclusion 

Therefore, it could be deduced that Mark and Spencer operate within an oligopolistic market framework of the retail market industry. The report dynamically expressed the respective critical characteristics of this market framework. The report also concentrated on the characteristics of the monopolistic market framework in which the company has performed its business operation in the earlier days. Ultimately, the report expressed the reason for the influence of the intervention programs of the government within the business practice and society. 

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References

Abdurakhmanova, G., Shayusupova, N., Irmatova, A. and Rustamov, D., 2020. The role of the digital economy in the development of the human capital market. Архив научных исследований, (25).

Alothman, A. and Alqahtani, A., 2020, July. Analyzing Competitive Firms In An Oligopoly Market Structure Using Game Theory. In 2020 Industrial & Systems Engineering Conference (ISEC) (pp. 1-5). IEEE.

Ara, T., Ghosh, A. and Zhang, H., 2017. Tariffs, Vertical Oligopoly, and Market Structure. RIETI.

Bertoletti, P. and Etro, F., 2017. Monopolistic competition when income matters. The Economic Journal, 127(603), pp.1217-1243.

Capobianco, A. and Gonzaga, P., 2017. Algorithms and Competition: Friends or Foes?. Competition Policy International, 1, p.2.

Dhingra, S. and Morrow, J., 2019. Monopolistic competition and optimum product diversity under firm heterogeneity. Journal of Political Economy, 127(1), pp.196-232.

González, L.O., Razia, A., Búa, M.V. and Sestayo, R.L., 2019. Market structure, performance, and efficiency: Evidence from the MENA banking sector. International Review of Economics & Finance, 64, pp.84-101.

Mark and Spencer. 2020. About Us | Indesit. [online] Available at: <https://www.marksandspencer.com/   > [Accessed 23 March 2021].

Indounas, K., 2018. Market structure and pricing objectives in the services sector. Journal of Services Marketing.

Jackson, E.A. and Jabbie, M., 2019. Understanding market failure in the developing country context. In Decent Work and Economic Growth: Encyclopedia of Sustainable Development Goals (pp. 1-10). Cham: Springer Nature Switzerland.

Keller, G., 2015. Statistics for Management and Economics, Abbreviated. Cengage Learning.

Neary, J.P., 2016. International trade in general oligopolistic equilibrium. Review of International Economics, 24(4), pp.669-698.

Parenti, M., Ushchev, P. and Thisse, J.F., 2017. Toward a theory of monopolistic competition. Journal of Economic Theory, 167, pp.86-115.

Statista. 2020. Revenue of Mark and Spencer | Statista. [online] Available at: <https://www.statista.com/statistics/413349/group-revenue-marks-and-spencer-mands/> [Accessed 23 March 2021].

Statista. 2020. Popular Super Market Chain | Statista. [online] Available at: <https://www.statista.com/statistics/1135764/most-popular-supermarkets-in-the-uk/  > [Accessed 23 March 2021].

Yang, L., Ng, C.T. and Ni, Y., 2017. Flexible capacity strategy in an asymmetric oligopoly market with competition and demand uncertainty. Naval Research Logistics (NRL), 64(2), pp.117-138.

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