Nobody downloaded yet


Comments (0) Cite this document
FINDINGS Glossary Market Equilibrium – This is a situation where the supply of a particular item is exactly equal to its demand so that there is neither a surplus nor a shortage of this item in the market. On a graph this is shown where the market demand curve intersects with the market supply curve…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Read TextPreview

Extract of sample

Download file to see previous pages Similarly, a fall in the price of a particular item shows a rise in the demand for that item. On a graph, a fall in price will show an inward shift of demand curve and a rise in the prices will show an outward shift of the demand curve. The diagram below shows a fall in demand due to a price rise. Figure 2 Shift in Demand – This happens when the demand of a particular item rises or falls due to various factors which include an increase or decrease in the number of consumers; an increase or decrease in the prices of substitute products and complements; a change in consumer incomes (ability to afford that particular item); changes in tastes and preferences of consumers; and price expectations. On a graph, a rise in demand is shown as an outward shift while a fall in demand is shown as an inward shift of the demand curve. [McConnell, Brue, Flynn, 2009] Shift in Supply – This happens when the supply of a particular item rises or falls due to various factors which include an increase or decrease in the prices of the resources used to manufacture that item or render a particular service; an increase in technology which is more likely to increase the supply; an increase or decrease in the number of suppliers; and a rise or fall in the price of a substitute or a complement item. ...
For any business, its risk management will be naturally concerned with avoiding such negative factors which could kill the business. Therefore, the first task for any such manager is to identify what might potentially harm GoFast Airlines in the future. Prices of Fuel As a strategist, the first factor to consider is the rising prices of fuel, which is the most important raw material for any form of a travel company today. With the increasing fuel prices, GoFast will naturally have to increase fair prices to cover the costs, while still competing with giants like British Airways which have been there since a longer time and are more financially secure. Higher prices may cause a fall in demand for air travel which can directly reduce the number of fares for GoFast Airlines, as which happened with Singapore Airlines earlier in 2011 [Singapore Business News (SBN), 2011]. This will directly affect their low-price flights approach which, mixed with quality service, gained them the customer base they have today. Economic Recession Economic recession is potentially the most important economic factor which could affect the profitability and the market leadership of GoFast Airlines. In times of economic recession, the consumer’s purchasing power is weaker. In such times, although important corporate business trips may be made anyway, the smaller business may think twice before making an expensive trip. Most importantly, however, leisure trips are more likely to decrease in greater numbers in time of recession than business trips. Even in this situation, the consumer would be able to afford lesser than before and this will affect the number of fares. The demand will naturally fall for flights and so will GoFast’s sales and profitability [Milmo, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“BUSINESS ECONOMIC ENVIRONMENT LBSEC2051 Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from
(BUSINESS ECONOMIC ENVIRONMENT LBSEC2051 Essay Example | Topics and Well Written Essays - 1500 Words)
“BUSINESS ECONOMIC ENVIRONMENT LBSEC2051 Essay Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Economic Environment in bad condition and needs to restored. The shortages of energy supply may hold back Brazil in terms of its economic growth (Datamonitor 2010). The government is the main buyer in the sector, although some forms of public-private partnerships have been established from 2006 (LAM 2010). The sector is characterised with consolidation and large players, and it has seen an entry of foreign investments in past couple of years. The industry reflects a stable and health growth and opens many opportunities for external players as the business environment in Brazil is improving. At 58th position in the Global Competiveness Report (WEM 2010), Brazil is relatively stable, a result of its two...
7 Pages(1750 words)Research Paper
Technological and Economic Factors Affecting Business Environment
...?Technological and Economic Factors Affecting Business Environment Introduction People’s perception on time and distance has changed because air travel is associated with reliability and speed. Regardless of geographic location, as long as the service in air travel continues, distance would be irrelevant. It continuously grows because of innovation and adaptability that the operation management employed so that the company could cope up with the dynamic changes of the environment. The travel industry matches prices with the different segment and classes of society to attract travellers. This paper will investigate the changing business...
8 Pages(2000 words)Essay
The Economic Environment of Business (Museums)
..., compared to those who visit the site physically. Free entry to museums ensures that culture is for everyone. However, it has been pointed out that free admission damages the reputation and image of those museums that do charge. Reference List Dowd, V. (2011, December 1). BBC News. Retrieved November 10, 2013, from Museum entry fees: How the UK compares: Frey, B. S., & Meier, S. (2006). The Economics of Museums. Journal of Economics of Art and Culture , 1 (1), 1019-1047. Johnson, P., & Thomas, B. (2008). The Economics of Museums: A Research Perspective. Journal of Cultural Economics , 22, 75-85. Silito, D. (2011,...
6 Pages(1500 words)Essay
The Economic Environment of Business
...was also formulated to control the price of basic petroleum products in order to avert exploitation of oil cartels. Apparently, the office of fair trading that is mandated with the task of evaluating the business and marketing environment with the aim of ensuring that the consumer is not exploited by the business firm as a result of harmful competitive strategies while on the other hand consumers are getting quality products and services from this rapidly developing and diverse sector on the economy. On the same note, the office of fair trading in the year 2012 conducted a survey in the oil market in a bid to certain whether it was incompliance with the various laws regarding the...
3 Pages(750 words)Essay
The Economic Environment of Business
...THE ECONOMIC ENVIRONMENT OF BUSINESS INTRODUCTION: This report focuses on milk and dairy products in the UK and the market trends in the recentpast, we will focus on liquid milk, cheese, yogurt, butter and cream which are products associated with milk. The sales in the recent past for this products has continued to grow despite the relative mature nature of this market, keynote estimated that in 2005 there was a rise in the retail sales of this products by 3.8% using 2004 as the base year, in 2005 the total UK revenue was worth 8.16 billion pounds.1 Milk products are generally purchased by all households, however liquid milk accounts for the largest share of this market. On the other...
12 Pages(3000 words)Essay
The Economic Environment of Business questions
....    (Hawkes, 2008) Answer 1-b The word downturn refers to a slump in sales due to economic recession and meltdown that because unemployment increases and consumption decreases. The business organisations observe negative growth in their businesses since customers are inclined to make purchases of necessities and are reluctant to make purchases of luxuries and other items with higher price elasticity. Answer 2-a Supermarket Industry is an oligopolistic industry since there are few businesses (large scale producers and retailers) that dominate the market and reap benefits. These businesses may set industry total output and prices of their products....
3 Pages(750 words)Essay
International Economic Environment of Business
...1 OF WOLLONGONG in DUBAI College of Business UAE as an International Economic Center In Partial Fulfillment of Requirement of the Subject: TBS983 International Economic Environment of Business For the MIB/MQM Program Summer-2’ 2010 By (student’s name) Submitted to: ...
7 Pages(1750 words)Essay
The Economic Environment of Business
...entry into new markets. Also the regulatory issues that it has had in regards to the existing market will be discussed. Lastly, the paper will consider the directions it is taking in terms of international expansion, capital acquisition and challenges faced. Structure of the Ryanair market In order to understanding the airline industry it is important to understand the customers first. The airlines on the other hand are customers to airline manufacturers like Boeing and Airbus (Palmer & Ponsonby 2002). The governments and the global economic structure are the other factors that highly affect the airline business. It is important to appreciate however that despite the industry having many players and...
14 Pages(3500 words)Essay
The Economic Environment and Anatomy of Business
... Due: The Economic Environment and Anatomy of Business Demand and supply The amount demanded is that the quantity of a product individuals area unit willing to shop for at a precise value; the interconnection between the price and the quantity demanded gets thought because the demand relationship. The amount supplied refers to the quantity of a precise smart producer’s area unit willing to produce once receiving a precise value (Galbraith and Sasha, 15). The relationship between price and the way abundant of an honest or service is equipped to the market gets thought because they provide relationship. Price, therefore, could be a reflection of provide and demand. The connection between demand and provide underlie the forces behind... of...
8 Pages(2000 words)Essay
Economic environment
...Economic Environment I. Monetary policy and fiscal policy are two different instruments used by governments to help in the economic development of a country. For any government there are three major purposes which are maximum employment, stable prices and economic growth. The primary role of monetary policy is to regulate the circulation of money and increase or reduce the interest rate. This helps to keep the price stable and this will greatly benefit the economic system of a country. This will ensure business sector to perform with confidence as price levels will not fluctuate heavily in the future. This is the case in the United States where the levels of price and wages do not fluctuate beyond a certain measure (Friedman, 1968... of...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic BUSINESS ECONOMIC ENVIRONMENT LBSEC2051 for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us