Banking and finance

FINANCIAL AND ECONOMIC LITERACY FOR MANAGERS
Table of Contents
Question 1    3
Question 2: Report    4
Executive Summary    4
Introduction    4
Report Findings and Discussion    4
Conclusion and Recommendations    5
Question 3    6
a)    6
)    6
Question 4: Report    7
Executive Summary    7
Introduction    7
Report Findings and Discussion    7
Conclusion and Recommendations    8
References    10
Question 1
Consumer sovereignty can be refe
ed to as a scenario, in which the desires and needs of the consumers directly or indirectly control the output of the producers. Sassatelli (2015), there is a freedom for the consumers to choose from a variety of options and the consumers have a capability to do the same. Hence, the demands and preferences is a major driver of the production of the producers and it guides the allocation of the finite resources. Many organisations attempt to improve the customer’s satisfaction level. However, the globalisation has led to a significant increase in the competitors, which makes it very difficult to satisfy the customer.
It is general though that an organisation can be successful it is able to meet all the demands of its customers. If the company’s products are the best in the market for a long time, it is expected that the company will be earning high profits. As stated by Tadajewski (2018), if the accompany has proper knowledge of the demands and requirements of the consumers, the products can be planned in a similar manner along with the production schedule. Hence, alignment of the production with the demands of the customers will enable the company to earn healthy profits. Nevertheless, in this modern world, the competition level is very high, due to which the competitor try to produce the best product at a given price to increase the value for money. The customers have multiple options and select the product that offers them the best value for money. It is the prime desire of eve organisation to earn high profits and if the company can meet the demand of the customers in the best manner, it is bound to earn more profits than its competitors do.
With the increase in competition, retention of customers is becoming even more difficult. The organisations are required to follow standardised pattern of product to gain the advantage of economies of scale. If there is more supports towards customer-centric process, the cost of production will be high. If there is a sudden changes in the preferences of the customer, the company will not be able to adjust to that at a fast pace. The modern times requires a high level of product innovation. However, the company has to find a suitable trade-off between standardised product and customer-centric product. As stated by Timmermann et al (2018), Alignment of the production with the demands of the customer can enable the company in adapting to the changes in needs of the customer. The competitors are always in search of a loophole in the product of other companies, so that they can make it their unique selling proposition. Due to presence of large variety of products, there is a chance of product failure even if the organisation is able to meet all the requirements of the customer.
However, due to technological innovation and increasing start-up culture, the customers are served with products and services, which is beyond their thought-process. Products like the Apple iPhone were such products that customers never thought of. Such products have the capability to change the whole marketplace and demands of the customers. Such products are not demanded in the market, but the launch of such products increases their demand. According to Mokhtari (2018), there is a change in the demand of the customer, once the customer gets aware of the products. In such a scenario, the model of consumer sovereignty fails. The notion that an organisation consistent with consumer sovereignty can expect to earn high profits seems to be on a weaker side as any company, depending on its products, can earn the profits. Initially, there may not be much demand for a product, but the scenario may change.
Question 2: Report
Executive Summary
The cu
ent report focuses on the demands, supplies and the market structure of three basic companies from different industries— McDonalds, Tesco and British Airways. Their market analysis informs that these three firms only, have a huge demand of their products and services in the market, which require them outsourcing their supplies from various suppliers. However, in order to align their workflow with their supplying techniques, McDonalds is suggested to analyse their stocks before, Tesco to maintain their technological aspects and British Airways to maintain relations with their suppliers for their just in time purchases.
Introduction
McDonald’s Corporation operates in an oligopoly market. The products are the company can are affordable and hence, the demand of McDonalds is elastic. As stated by Fauver and McDonald (2015), the demands of the company increase suddenly during the peak hours mainly evening and afternoon. The price of the products is reduced during non-peak hours in certain countries. This is done to increase the demand for the product during hours other than peak hours.
Report Findings and Discussion
According to Spicka (2015), the competition in the food and snacks industry is huge however, McDonalds dominates the industry. If has established itself as one of the most prefe
ed
and across the globe. The firm enjoys a high market shares and continuously innovates its products to maintain such a market share. It also taken into account the modern health issues to ensure that; the customers get no chance to reject the product. The major competitors of the company are KFC, Burger King and few others. The management of the company ensures that none of its outlets does not...