In March 2015, UK consumers spent around 34 billion. OFT gathers intelligence about markets and trader behaviour from a wide range of sources and then they respond to complaints about markets from nominated consumer bodies, where the OFT is able to see potential problems, the OFT undertakes market studies and recommends to take action respectively. Examples of a perfect competition to its closest definition are in the financial market like stock exchange, currency exchange market and the bonds/certificates market. Firstly, there are several sellers but only a few big companies who have a large market share in the industry. 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. It can allow smaller companies to cooperate if this strengthens their ability to compete with larger ones such as Sainsburys and Tesco. OFT gathers intelligence about markets and trader behaviour from a wide range of sources and then they respond to complaints about markets from nominated consumer bodies, where the OFT is able to see potential problems, the OFT undertakes market studies and recommends to take action respectively. support@phdessay.com. In economics, market structures can be understood well by closely examining an array of factors or features exhibited by different players. Tesco PLC is a multinational grocery and general merchandise retailer. PhDessay is an educational resource where over 1,000,000 free essays are Tesco Board of Directors consists of 10 members. Eliminating exchange rates between European countries eliminates the risks of unforeseen exchange rate revaluations or devaluation, further those businesses who involved in commercial transactions in different member states would no longer have to face administrative costs of accounting for the changes of currencies. (http://www.tescoplc.com/plc/about_us/map/). 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). Market structure is said to be the characteristics of the market. The top three competitors of Tesco are Wal-Mart, Carrefour, and Metro. The UK is growing reasonably well, Germany is having problems. 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. A competition test to curb the power of the supermarkets was unveiled by the Competition Commission last year as part of a planning shake-up designed to boost competition in the multi-billion pound grocery market. This may lead to pockets of deeply depressed areas in which people cannot find work and areas where the economy flourishes and wages increase. Effective competition provides goods and services cuts prices, raises quality and expands customer choice, allows technological innovation. The objective of this report is to analyze on the market structure of the retail industry in the UK. The objective of this report is to analyze on the market structure of the retail industry in the UK. It can allow smaller companies to cooperate if this strengthens their ability to compete with larger ones such as Sainsburys and Tesco. Views 1142. Homogenous products are identical products or business e.g. I write a summary of market structure and how it affects the pricing and output decision based on Keat, P., and Phillip Young. Find out more about our Board and Executive Team. The firm needs to establish its price and output levels to achieve its business objective of profit maximization. The Commission may agree to a company having a monopoly in special circumstances for example where costly infrastructure is involved (natural monopolies) or where it is important to guarantee a public service. The imports of UK data shows that the import from the non European Union zone is increasing i.e. The total equity consisted of the following items: 409M of share capital, 5 . Tesco offers a wide array of food and non-food products . Pure monopoly in where the firm is the industry, for example Transport for London, the firm which owns all buses and underground tubes in and around London, this is where consumers have no or very limited choice. database? Austria, Belgium, Czech, Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland. Market Share: According to Kantar, Tesco has 26.9% of the grocery market share in Great Britain. The four common structures are: Perfect competition market. As the companies are bound to follow market prices the only way the company can have advantage over its competitors is by reducing its operating costs and working at optimum level of efficiency The Business Model of Tesco. assignments. Different Types of Market Structures. Twenty seven separate countries with widely differing economic performances and different languages have never before attempted to form a monetary union. Save time and let our verified experts help you. Since then there have been significant efforts in terms of policy. (2017, Dec 26). One central bank cannot set inflation at the appropriate level for each member state. It operates stores in various formats differentiated by size and range of products sold, including large, small, dotcom only and one-stop. MARKET STRUCTURES. As a comparison the total value of UKs trade-in-goods imported to the UK from countries outside the EU in May 2010 was 14.0 billion and for June 2009 was 12.0 billion. There are four basic types of market structure: perfect competition, imperfect competition, oligopoly, and monopoly. The two organisations I will be comparing and contrasting are Tesco and Sainsbury's which I believe belong to the Oligopoly market structure. More Jobs: their profits margin will vary but still always high. Another company in the market structure of oligopoly has been analysed. they work with the EU on shaping policies. In the UK market, it is very crucial to determine the quantity of output in order to keep check on pricing and related decisions. The major market forms are: Perfect Competition; Monopolistic Competition . In oligopoly there are many entry and exit barriers such as huge investments etc. 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. Tesco is headquartered in Welwyn Garden City, Hertfordshire, England in the United Kingdom. This describes us perfectly. Tesco makes biggest ever investment in hourly pay, taking the rate to over 11 an hour . Tesco is not the only supermarket in the United Kingdom, Tesco is the dominant shareholder, but it should not be considered a monopoly since there are several other companies competing with Tesco . The Tesco Plc Company is on fourth place in terms of total revenues within the United Kingdom market segment alone. Managerial Economics, 6th edition. This should lead to more investment, more jobs and lower mortgages. total sales and thus guarantee a profit out of low price. TESCO Leadership and Organisational structure. Sainsbury which owns 16.3% of the UK supermarket shares and Morrisons which owns 11.5%, this means the entry barriers to entry are very high because the industry is dominated by small number of large firms which control and own that share market. In this structure, multiple management systems operate to ensure that everything gets done with perfection. June 2010 showed a 9.6 per cent increase in imports compared to May 2010 and a 28.4 per cent increase compared to June 2009. It follows a hierarchical structure, which truly matches the demand of the huge size of the company. 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 The competitive market structure an organisation belongs to is determined by the nature of their product, the number and size of other firms in the market and the entry and exit conditions of that market. Oligopolies lie between the definitions of perfect competition and pure monopoly. This is the reverse of the position in 1990. Language in Europe is a huge barrier to labour force mobility. Environment: Tesco PLC is the leading English distribution group. collected. Oligopoly is defined as a concentrated market. Contacting their NGOs (consumer associations, environmental pressure groups, etc.) they work with the EU on shaping policies. 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. European Union executes legislations in justice and home affairs, and maintains common policies on trade, agriculture, fisheries and regional development. This will unleash a greater potential for growth. 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. There is a lack of competition. 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. The Council of the European Union (representing national governments) Under the new law, EU countries will have to reduce exposure to fine particles in urban areas by an average 20% by 2020. . Market structure influences the behavior of firms to a great extent. Our business in numbers. The European Commission has wide powers to make sure businesses and governments stick to EU rules on fair competition. From my understanding there are many possible reasons that the government should consider while joining Euro, joining Euro would reduced exchange rate uncertainty for UK businesses and lower exchange rate transactions costs for both businesses and tourists. The retail industry in the industry PLC company is on fourth place terms! Large, small, dotcom only and one-stop central bank can not set inflation at the appropriate for! Biggest ever investment in hourly pay, taking the rate to over 11 an hour justice. 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