The emergences of Low-Cost-Airlines in India
Executive Summary The emergences of Low-Cost-Airlines in India in the past six months have led to stiff competition between the regular network airlines Jet Airways, Air Sahara and Indian Airlines, leading to slashing of fares and other aggressive tactics to drive out the new entrants. This commentary will analyse why the Low-Cost-Airlines pose a threat to the key players using the economic concepts of the theory of firms. Introduction The Low-Cost Airline concept is very fresh to the Indian market. Low Cost Carrier Air Deccan started operating in southern India since September 2003. The fares set by Air Deccan are competitively low and quite out of reach for the regular network airlines. Commentary Assuming, the market is in equilibrium and the firms to maximise profit. The domestic aviation industry of India is an oligopoly, i.e. a market in which only a few firms share a large proportion of the industry selling differentiated or undifferentiated products and where the entry of new firms is restricted. There is a fair degree of competition amongst them to get the biggest market share due to which they face a kinked demand curve. This will be explained by the following graph. (fig 1.1) At the market equilibrium price P, a quantity Q is demanded. (Its important to consider that the airline is not necessarily flying fully occupied. So the increase and decrease in the
How has the Brazilian economy been affected by the decline in wrld coffee prices?
TITLE: How has the Brazilian economy been affected by the decline in wrld coffee prices? HYPOTHESIS: Based on the fact that previous to Brazil producing coffee, it had no single economic influence. This suggests that they rely heavily on the production and success of coffee, and therefore the current coffee crisis could only mean difficulties for their economy. FINDINGS: Coffee is the world's second most traded commodity (after oil). The coffee growing industry employs over 100 million people from over 60 developing countries. It best grows in areas like Arabia, India, Africa, the West Indies and South and Central America, with 60% of coffee output deriving from Latin America. Brazil's relationship with coffee can be traced back to the mid 1800s. In 1930 the Brazilian government first approached Nestlé (Nescafe) as they knew that Nestle were looking for a coffee producer to supply them for a new brand of coffee; 'Nescafe'. From then until the 1970's over 50% of Brazil's foreign trade income came from growing coffee beans. Prior to this they didn't really have a single major influence on their economy; they were in a colony which prevented it from becoming more developed because Spain used to control its trade. Brazil would be expected to provide raw materials for Spain at little of no cost. Today Brazil makes up 30% of total coffee output and is the world's
Swot and Pest Analysis For Cadbury’s
SWOT and PEST Analysis for Cadbury's To develop an appropriate marketing strategy would involve creating a link between the external environment and the internal strengths of Cadbury's. SWOT analysis is the focus upon the strengths, weaknesses, opportunities and threats facing a business internally and externally. To enable a SWOT analysis to be carried out, research into Cadbury's current and future positions need to completed. This would result in building upon its strengths, minimise its weaknesses, seized its opportunities and cancel out the threats. STRENGTHS * Large established business * Good reputation * Wide portfolio of products * Good advertising (Coronation St) * Large target market OPPORTUNITIES * Sponsorship for sporting events * Diversify into a different market * Expand Nationally * Promote using large marketing strategies THREATS * Cadbury's main competitor Nestle launching a new product * More companies diversifying into the chocolate market * A large price war, taking Cadbury's off the market WEAKNESSES * Unmotivated staff in the work place * Too big a demand for a particular product PEST is split into four categories, political, economic, social and technological influences, which are all external factors. A PEST analysis identifys what external factors are going to effect Cadbury's in the coming months and years. POLITICAL -
What makes a country wealthy.
Q 1 What makes a country wealthy. INTRODUCTION: Envision a country where the primary goal of its economic policy is to accumulate a single commodity lets take for example, gold. Now will the accumulation of wealth be beneficial to this economy's members? Yes, this could only be possible if there is another country exists that devotes its power and assets to the fabrication on essentials like food, clothing, and others and that this second country is willing to trade these goods for the gold of our first country. Commodity's Wealth cannot be consumed directly by individuals. One cannot be provided with nutrition or protection from the elements like gold, oil, iron ore and others which are slightly valuable in direct consumption. Hence trade can be possible with such countries who realize the true measure of wealth through production of basic goods and services, so these commodities are valuable for such countries. Figures shows the circular cycle of the economic world. Adam Smith was the first to realize that the Wealth of a Country was neither in the accumulation of commodities nor in the resource reserves that a country may happen to possess. But rather wealth exists in the productive knowledge of its people. The ability to efficiently transform resources (factor inputs) into desired goods and services represents the true source of a country's wealth. COUNTRY'S
The Euro to join or not to join?
The Euro to join or not to join? I will examine whether or not Britain should join the Euro. I will examine both the arguments for and against joining and try to draw an overall conclusion. Arguments For the Euro The arguments put forth for membership of the "Euro zone" (countries that have adopted the Euro as their currency) are split into two groups: political and economic. The economic arguments are further sub-divided into three groups: transaction costs, trade competition and investment. Ultimately, abstaining from the Euro means higher costs (as far as transaction costs are concerned) than if we joined. The commissions involved in buying the Euro when trading with European countries will remain and the uncertainty arising from a floating exchange rate will also continue to be apparent. Whilst this is unlikely to make a significant difference for UK businesses buying continental European exports, it could well affect the number of UK exports being purchased by continental European companies. Basically, UK exports will be more expensive to Eurozone countries compared to exports of other Euro zone countries due to the changing cost of buying the pound. The UK's membership in the Euro zone would eliminate these costs. Trade competition refers to the fact that if exports from Euro zone countries are all priced in the same currency then it is easier for companies to see
THE UK AND THE EURO
Introduction: Economic advantages and disadvantages to the UK of participation in the European single currency, Euro. Will British businesses be better or worse off if the country decides to participate? The Second World War which ended in1945 left a disastrous effect on Europe. Europe was greatly devastated politically and economically creating a divide among the people. The union grew out of the carnage and devastation of the war and has proved to be the world's greatest peace process, uniting old enemies and friends alike in a common effort to ensure peace, freedom and prosperity for all of Europe. The freedom and prosperity of the region were the core goals of the enabling treaty which has been successful. Today, the region has witnessed a lot of unprecedented growth in its economies. In a bid to boost the economic well being of the region, it was envisaged that a single currency among other factors for the member states will enhance the progress of businesses in Europe. Whether the single currency will be of benefit to the UK has remained a debate over these years. Will it really work? Will UK be better or worse off? Chapter 2: Origin of the European Union/ Objectives The European Union came into being following the treaty of Rome which was signed by six member states namely; France, Netherlands, Belgian, Italy, West Germany and Luxembourg. They were commonly
How Capitalism works.
Capitalism Capitalism is the political economic system based on private property and private profit. In this system, individuals and companies own and direct most of the resources used to produce goods and services. Such resources include land and other natural resources, labour, and capital. Capital includes factories, equipment, and money used in business activities. The term capitalism comes from capital. Capitalism pressurises private economic choices. People are free to decide how they will earn and spend their income. Companies may choose which goods and services to produce and how much to charge for them. They also compete with one another to sell products. Major economies which are based on capitalism include the United States, Australia, the United Kingdom, France, Canada, Germany, Hong Kong, and Japan. The government controls some aspects of the economy in every nation. But capitalism's emphasis on private economic decisions makes it different from the two other major economic systems--Communism and mixed economies. In Communist or centrally planned economy, the government owns or controls most of the resources used in production and develops national plans for their use. In a mixed economy, the government does some economic planning and controls some industries, but it also allows some individual choice. Capitalism is sometimes called free enterprise or
business aims
Introduction In this unit, I will study the aims and objectives that profit not-for-profit businesses try to achieve. I will explore how the external environment, such as changing social values and competition, affect the ability of businesses to achieve their aims and objectives. I will study how businesses use market research and the marketing mix to identify and meet customer needs, explaining how these marketing activities help businesses to achieve their aims and objectives. I will explore the meaning of enterprise and enterprising behaviour and investigate why individuals and teams are vital to the success of business. Introduction of my business The business that I have chosen is an off license grocery shop business which is located on Leicester Street, Whitmore Reans in Wolverhampton. The name of this shop is Khera Doaba Stores. The business is owned by Mr Putvinder and Mrs Amerdeep Khera, who have been running it for the last 15 years. They bought this shop back in 1991 from some close relatives, who were looking to sell because of money difficulties, so they helped them out. In the shop there are two joint managers Mr and Mrs Khera. There are also 7 employees that help out by stacking and bring in the goods; Hardeep Khera, Jasmine Khera, Navdeep Singh, Kuldeep Sangha and Sammy Pather. There are also two paper boys; Raj Bigra, Kiren Kang. The banking and
Should Organs Be Bought And Sold?
Student - Oliver Maltby Lecturer - Lesley Blackford Question - Should Organs Be Bought And Sold? Should people be allowed to buy and sell organs? At the moment, exchanging organs for money is illegal, but some members of various medical and business communities would like to change that. There are two main reasons for this - a person's organs belong to them (so they should be able to do with them as they wish) and the shortage of available organs means we need changes in order to make more organs available and thus save more lives. There are also a number of reasons against selling organs, the two main ones being the fact that selling organs leads to the commodification of human bodies and the second about the exploitation of the poor for the benefit of the rich. These are difficult reasons to explain and may not convince everyone, but they give the overall view of what our society believes. It's not very clear that just because the only possible "owner" of an organ is the person in whose body it exists that, this same person should also be able to sell it to the highest bidder. You own your whole body as well, but does that mean you can sell yourself into slavery? Of course not - in modern society, the "ownership" a person has over their body is treated as in that it cannot be legally sold to any other party. Just saying that you "own" something does not also give you the
Comparison of Stance's Held on Key Issues by Blair, Thatcher and Major
Issue Conservative Labour Interventionism. Thatcher Major Blair The state interfering with the economy, extended from the initial attempts of Asquith and Lloyd George. -Minimum wages introduced - Job creation "Welfare to Work" - "New Deal" Free Market Thatcher Major Blair The opposite of interventionism, leaving the markets to regulate themselves and provide goods and services. -No pay controls - No pay controls - No Pay controls - Control of Interest rates given to the Bank of England. Both parties were committed to intervening as their economic policies all had aspects of PAY/PRICES in them. During the 1960's all parties included a wage policy in their normal policies, for example laws passed to prohibit wages rising beyond a certain level. Keynesianism Thatcher Major Blair Creating wealth and jobs through government sponsored initiatives and lower taxes creating both supply and demand, creating a cycle to pay themselves back. - Top rate of income tax fell to 40p from 80p in the £. - The base rate also fell to 25p - No "robbing the rich to pay for the poor" - Major also cut taxes from 25 to 23p - No "robbing the rich to pay for the poor" - Base rate lowered to 22p - Brown commits the party to no raises in income taxes. - Redistribution of wealthy through windfall taxes etc, however no "robbing the rich to pay for the poor" Monetarism
