can use them for free to gain inspiration and new creative ideas for their writing The transfer of money and fiscal competencies from national to community level would mean economically strong and stable countries would have to co-operate in the field of economic policy with other, weaker, countries, which are more tolerant to higher inflation. As a comparison the total value of UKs trade-in-goods exported to countries outside the EU in May 2010 was 9.4 billion and for June 2009 was 8.2 billion. It is estimated that the currency cost of exports to small companies is 10 times the cost to the multi-nationals, who offset sales against purchases and can command the best rates. Order your essay today and save 15% with the discount code ESSAYHELP, Don't use plagiarized sources. There are three different types of monopolies listed as below: they will be extremely affected by any slowdown in the UK food market. Effective competition provides goods and services, automatically raises quality and customer choices increase with competition. (http://www.tescoplc.com/plc/about_us/map/) MARKET STRUCTURES. Tesco offers a wide array of food and non-food products . Though the number of sellers in . This describes us perfectly. Many fast food franchises fit all or most of these characteristics. Businesses regularly have to make appeals against Commission decisions if it seems like a unfair deal. Understanding what structure a company operates in is key to successful market placement. Thus, the supermarket industry in the UK could be described as an Oligopoly Market. (https://www.uktradeinfo.com/index.cfm?task=euearlypub). If a community or even an individual has an important point to show to the union they must do some of the following starting with: Contacting their local MP European Union policies are part of national politics. If a community or even an individual has an important point to show to the union they must do some of the following starting with: The EU has developed a single market system of laws which apply to all member states, and ensures the free movement of people, goods, services, and capital, including the elimination of passport controls by the Schengen Agreement between 26 European Union states which I have listed below. Either the physical products can be varied in quality, features, style or the accompanying services can be varied. For Part 1 I will be describing the 4 different market structures that economist usually talk about are perfect competition, monopolistic competition, oligopoly and monopoly. Buyers see different in sellers, products and will pay different prices for them. Businesses, involved in commercial transactions in different member states, would no longer have to face administrative costs of accounting for the changes of currencies, plus the time involved. MARKET STRUCTURE MANAGERIAL ECONOMICS MBA SEMESTER 1 -PAYEL GHOSH 2. The disadvantages of a monopoly is that customer are exploited to high prices and potential supplies have limited choice for demand and this means that the consumers have less choice and again might have to pay higher prices than normal or the monopoly can even use very low price to push their competitors towards administration or bankruptcy. One central bank cannot set inflation at the appropriate level for each member state. Being in the Top 50 retailers globally as of 2021, Tesco's annual revenue worldwide in 2020 was 58.09B, a 9.1% decline from 2019 (due to the Pandemic & disposing of its Asia operations, to focus on the core business in Europe). Agriculture Media Competition Consumers Education, Employment Environment External trade Fight against fraud Human rights, Taxation Transport Justice, freedom Internal market Customs, Impact of European Union's Competition policy on Tesco. A market is the area where buyers and sellers contact each other and exchange goods and services. In economics, market structures can be understood well by closely examining an array of factors or features exhibited by different players. Equity is the element of the capital structure of the company that is sourced through the issuance of shares or profits claimed by stockholders (Arnold, 2013). Agriculture Media Competition Consumers Education the buyers have the power to influence the price of the product or services. EU Exports. This should lead to more investment, more jobs and lower mortgages. Make sure that this guarantee is totally transparent. Tesco and InterContinental plc are two UK businesses which get affected by market structures to adjust their output and pricing decisions. Thanks to our free revisions, there is no way for you to be unsatisfied. According to the principles of microeconomics market structures can be identified as perfect competition, oligopoly or monopoly. The trend continues in the same direction until the asset price records a lower low (LL). European Union policies ensure safer food and a greener environment, better living standards in poorer regions, joint action on crime and terror, cheaper telecoms and communication, millions of opportunities to study abroad and more European Union executes legislations in justice and home affairs, and maintains common policies on trade, agriculture, fisheries and regional development. Tesco focuses on attracting customers through its signature low prices strategy. total sales and thus guarantee a profit out of low price. The European Union Commission can allow companies like Asda and Morisons to cooperate in developing a single technical standard for the market as a whole. Order custom essay Types of Market Structures and Competition in UK Language in Europe is a huge barrier to labour force mobility. Once in a lifetime a family might make one large purchase or transaction across a European border such as buying a holiday home or a piece of furniture. Effective competition to provide goods and services cuts prices, raises quality and expands customer choice. Tesco PLC is a multinational grocery and general merchandise retailer. The total 2010 year to date value of UKs trade-in-goods imported excluding June 2010 was 67.5 billion. Financial Turnaround: Thanks to the leadership of Dave Lewis, Tesco recovered from an annual loss of 6.4 billion in the annual report of 2015 to an operating profit of 1.9 billion in the annual report of 2020. Today the main priorities are combating climate change, preserving biodiversity, and reducing health problems from pollution and marking sure that natural resources are being used more responsibly. The policy also allows technological innovation and the European Commission makes sure that these innovations are in the European Unions fair competition policy. All businesses like Tesco's are directly affected by this policy as this aims to cut energy consumption and greenhouse gasses by 20%, meaning Tesco will have to recycle more, reuse materials more and reduce wastage and use of non-biodegradable equipment which will have a small dent on their profit. Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. Below I have listed the advantages and disadvantages which were discussed by the chancellor Gordon Brown at the times of between 1999 and the year 2002 when the waves of countries in Europe joined the European Union and the currency: (http://news.bbc.co.uk/1/hi/special_report/single_currency/25081.stm). The European Union plans to reduce greenhouse gases at least 20% by 2020 (compared with 1990 levels), raise in renewable energys share of the market to 20% and cut overall energy consumption by 20% (compared with projected trends). In the business model of Tesco, we have seen that it has organized its business model with the best strategies. The main ones are: The European Parliament (representing the people of Europe) An oligopoly is most likely to have a kinked . The retail sector. Private goods on contrast are ones from which the public can only. As the OFT only supervises what happens in the United Kingdom, there is the European Union which is active in a wide range of policy areas, from human rights to transport and trade, the European Union monitors all of the 27 countries that are part of the union, using similar techniques as the OFT but on a much larger scale, the policy to monitor and control competition is said as "A fair deal for all" and this policy is described as: "Effective competition to provide goods and services cuts prices, raises quality and expands customer choice. A good and most current example of a monopoly is the Apple Company which has created the iPhone, because of the degree of the monopoly there is a high possibility of price discrimination where the customers and the consumers have their choices limited to what is available in the market. Since then there have been significant efforts in terms of policy. (http://www.oft.gov.uk/ about/what/#named2) The firm needs to establish its price and output levels to achieve its business objective of profit maximization. The European Commission has wide powers to make sure businesses and governments stick to EU rules on fair competition. A single currency would help that transaction pass smoothly. The competition policy stops the Tesco from growing further from their potential market share, something which Tesco has known to be done in the recent years. ", Following are the 4 leading supermarket chains in the United Kingdom Tesco, Asda, Sainsbury's and Morrisons, these fantastic four have a combined share of 75.6 percent of the UK grocery market accord to the research done in the 12 weeks ending 1 November 2009 (Source: Kantar World pane) http://TNS_Worldpanel. But, each and every market in the United States is completely unique from the others.. 1093 Words5 Pages. Tesco's Promotional Strategy. The price of goods and services in a firm depend on the levels of demand, cost conditions and competition . The article uses the SWOT Analysis technique to identify the market position of the company. When the percentage change in the sales is more. In the United States, Texas could not avoid a recession in the wake of the 1986 oil price fall, whereas demand for Sterling changed in the light of the new oil price, adjusting the exchange rate downwards. Under the system, European Union governments set limits on the amount of carbon dioxide emitted by energy-intensive industries and if they want to emit more CO2 than their quota, they have to buy spare permits but most supermarkets stores do not manufacture and this means that they will have to use eco friendly methods of business and equipment. European Unions rewards businesses and organisations, which reduce their CO2 emissions and penalises those that exceed limits. This may lead to pockets of deeply depressed areas in which people cannot find work and areas where the economy flourishes and wages increase. Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. Non EU Exports. Tesco was born and the first shop was opened in 1929 in north London. Research Paper Assistance Get Help With Research Papers, 5 steps of Essay Writing. An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. Aid for research and innovation, regional development or small and medium-sized enterprises is often allowable because these serve overall EU goals. In turn, this has enabled us to consistently attract new customers to Tesco from our competitors over the last two years and we know they increasingly recognise the value they can find at Tesco. Market structures are the business orientated characteristics of a market; all businesses must focus on these characteristics of the market because these have an effect on the degree of competition in the industry and influence the business product or service pricing decisions. In 2013, Tesco spent approximately 110 million on marketing efforts in traditional outlets. Tesco PLC is a British grocery and general merchandise retailer that operates internationally with headquarters in Hertfordshire, England. Using the 4 market structures I will illustrate using real life case studies and examples how a selected business of my choice has behaved/responded to its market structure and finally describe how the OFT and other regulatory bodies check against anti competitive behaviours. Under the European Union the members can travel and trade freely without any constraints as long as the members are trading in euro (the single European currency). Loss of national sovereignty is the most often mentioned disadvantage of monetary union. Get Your Custom Essay on. It is important to note that the structure below . The Office of Fair Trading is the UKs consumer and competition authority and their mission is to make markets work well for consumers. Advantages: A single currency should end currency instability in the participating countries (by irrevocably fixing exchange rates) and reduce it outside them. your own essay or use it as a source, but you need You can use it as an example when writing they work with the EU on shaping policies. To find the main sources of competitive advantage that Tesco has over its competitors an analysis of the structure of the industry should be under-taken (Porter, 1980). The organization currently has three locations (La Jolla, Del Mar, and Encinitas).. Public goods are goods from which the whole community can take benefit without the need of purchasing them. 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