It is illegal under EU rules for businesses to fix prices or carve up markets between them. Sustainable development has long been one of the overarching objectives of EU policy. they will be extremely affected by any slowdown in the UK food market. Thats why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe. Likewise, businesses would no longer have to pay hedging costs which they do today in order to insure themselves against the threat of currency fluctuations. In this type of industry firms usually follows pull strategy and make huge efforts in marketing and advertising to attract its target customers, the products in the industry could be highly differentiated or even be similar but hard of getting a hold and this is why businesses use branding or homogenous. 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. 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). collected. Another organisation that does similar commerce to what Office of Fair Trading do, Ofcom is an independent regulator and competition authority, for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services. 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. This describes us perfectly. 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. Value of European markets to UK huge efforts will be done through their sales team, the main focus is the product availability. My description will include an evaluation of the pros and cons of UK joining the Euro along with that I will describe the impact of 2 EU policies on UK businesses. The company carries out business through multi-format stores and online. In the UK, the five big supermarkets totally have 3/4th of the market . These companies surpassed the revenues generated by Tesco Plc. Did you know that we have over 70,000 essays on 3,000 topics in our The characteristics of the market structure will have a major-influence on the competitive strategies and tactics that are implemented by firms. An oligopoly market is characterized by a few firms producing the same product, and each firm's action influences the other firms. A multinational company like Tesco cannot merge with another giant if that would put them in a position to control the market, though practice this rule only prevents a small numbers of mergers going ahead. 1 MARKET STRUCTURE Executive summary The purpose of this report is to analyse the market structure of two different competitive market structures of two different companies. Since then there have been significant efforts in terms of policy. A concentration ratio is a way . Climate change is one of the gravest challenges facing humanity. The Commission also monitors closely how much assistance EU governments make available to business ('state aid'). UK Supermarket Oligopoly - Key takeaways. The total value of UKs trade-in-goods exported for January 2009 to December 2009 was 124.2 billion, which has been upwardly revised by 48.5 million. Under the new law, EU countries will have to reduce exposure to fine particles in urban areas by an average 20% by 2020. Retail in the UK. essay, Quasar Computers and Different Market Structures, Various Market Structures and Characteristics, Reflection Essay on Differentiating Between Market Structures, Differentiating Between Market Structures, Classifications of market structures in the US, Analyze the Price Elasticity for different market structures, Write 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. If governments were obliged through a stability pact to keep to the Maastricht criteria for perpetuity, no matter what their individual economic circumstances dictate, some countries may find that they are unable to combat recession by loosening their fiscal stance. As a result of uncertainty in the market, Tesco broadened its forecast of profits for this year to between 2.4bn and 2.6bn - less than the 2.84bn predicted by analysts. Retrieved from https://phdessay.com/market-structures-tesco/, Hire skilled expert and get original paper in 3+ hours, Run a free check or have your essay done for you, Didn`t find the right sample? Most of the products available in Tesco are also available in other retailer store too. One legal structure of Tesco is the 'Corporate governance', the people in this sector deal with shareholders; they do this to make sure Tesco is achieving the strategies that the shareholders want them to achieve. In this type of industry firms usually follows pull strategy and make huge efforts in marketing and advertising to attract its target customers, the products in the industry could be highly differentiated or even be similar but hard of getting a hold and this is why businesses use branding or homogenous. May 2010 showed a 2.9 per cent decrease in exports compared to April 2010 and a 21.3 per cent increase in exports compared to May 2009. 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. It can be concluded that UK has less exports to the non EU zone compared to the European market, in June 2010 total value of goods exported to Europe was 11.3Billion compared to the total value of goods exported to the international market which was 10.9Billion. OFT is a non-ministerial government regulator that was established by government in 1973. European citizens have the freedom to live, work, study, and travel in any other EU country. The OFT has a 5 step method of keeping a good eye on business and other organisations these 5 steps start with Analysis, Prioritisation, Prevention, Partnership and Evaluation, the details of all the steps are on their website under 'What we do'. EU has set binding limits on emissions of fine particles known as PM2.5. One of the few reasons that the United Kingdom did not want to join the single European currency with the first wave of countries on 1 January 1999 is that according to the chancellor of the Exchequer at that time in 1999 who was Gordon Brown our current prime minister said that, although the government supported the principle of the single currency Britain would not be ready to join at least until the second wave of countries which occurred in 2002 and during that time he told the European Union that the country should begin to prepare for monetary union but up till now there have been no indications of the United Kingdom joining the European Union currency, Euros. When aiming to acquire competitive advantage, Tesco has three options: cost leadership, product diversification or niche strategy . aviation all airlines prove one service which is to get their customers from one location to their destination and most customers have no preference or specific type of airline that they want to travel with, most customers will just look for the cheapest airline. It operates in twelve countries by 2005. Not only is Tesco one of the most valuable brands in the . Example of oligopolistic business industries are: supermarkets such as Tesco which alone owns 30.4% which is nearly 1/3 of the UK supermarket retail share market share, banking industry, chemicals industry, oil and energy industry, medical drugs and also the news and media broadcasting industry. European policies In June 2010 the total value of UKs trade-in-goods exported to countries outside the EU was 10.9 billion. This may lead to pockets of deeply depressed areas in which people cannot find work and areas where the economy flourishes and wages increase. Monopolistic Competition Market Structure: Unlike perfect . The European Union has some of the highest environment standards in the world, developed over decades to address a wide range of issues. In addition, faced with the saturation of domestic market, high competition and self-development demand, Tesco expanded oversea markets in time and translated its store format to international market such as Turkey, China and Poland. Aid for research and innovation, regional development or small and medium-sized enterprises is often allowable because these serve overall EU goals. Thus, the current strategic purposes for business that Tesco should consider include expansion and . Tesco has increasingly looked overseas for growth with 1376 stores outside the UK; international sales of 11billion in . ?>, Order original essay sample specially for your assignment needs, https://phdessay.com/market-structures-tesco/, Similarities & Differences of Perfect Competition and Monopolistic Competition, Monopoly, Oligopoly, Perfectly Competition, And Monopolistic Competition, Monopoly, Perfect Competition, Imperfect Competition, Analysis and Comparing the Physical Storage Structures and Types, Organisational Types and Management Structures, Analysis Of Different Types Of Competition Economics Essay, get custom Net sales break down by activity as follows: - distribution in Central Europe (7%): operation, at the end of February 2022, of 537 stores located in the Czech Republic (185; of which 126 franchised), Hungary (198) and Slovakia (154; of which 15 franchised). Taxation Transport Justice, freedom Internal market Customs The UK is growing reasonably well, Germany is having problems. Perfect competition describes a market structure where a large number of small firms compete against each other with homogeneous products. An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. total sales and thus guarantee a profit out of low price. OFT (Office of Fair Trading) 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 . A market is the area where buyers and sellers contact each other and exchange goods and services. 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. Competition allows technological innovation to flourish. This will unleash a greater potential for growth. European citizens have the freedom to live, work, study, and travel in any other EU country. 1] Perfect Competiton. harmony in order to life, Types of Market Structures and Competition in UK. In the United States economy most markets can be classified into four different markets structures. The European Parliament (representing the people of Europe), The Council of the European Union (representing national governments). To 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. The Commission can, does and has fined companies for all these practices. 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. UK joining the Euro (Pros & Cons) Understanding Market Structures. 48 Vitosha Boulevard, ground floor, 1000, Sofia, Bulgaria Bulgarian reg. The firm needs to establish its price and output levels to achieve its business objective of profit maximization. This is the reverse of the position in 1990. Tesco itself argues that it is an oligopoly, which suggests that they are also not flawed in the perfect rivalry category of the market structure. Some of the basic aims of the European Union are peace, prosperity and freedom for its 498 million citizens in a fairer, safer world. Kudler Fine Foods is an organization that offers gourmet foods and wines to the San Diego Metropolitan area. Most common examples of monopolistic competitions are: restaurants as in the right area and right type of food they can have their own small portion of monopoly, professional solicitors, building and project managing firms and finally plumbers as there are less of them and more required. TESCO SUSTAINABILITY REPORT CASE STUDY 4 Source: Thus, Tesco Inc. operates in an oligopoly market structure and competes with Asda and Sainsbury. 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