Perfect competition is a theoretical market structure. Language in Europe is a huge barrier to labour force mobility. 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. This is because in the . Contacting their NGOs (consumer associations, environmental pressure groups, etc.) The Office of Fair Trading is the UKs consumer and competition authority and their mission is to make markets work well for consumers. Under monopolistic competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. OFT (Office of Fair Trading) The firm has to provide the markets supply, and there are. There are four basic types of market structure: perfect competition, imperfect competition, oligopoly, and monopoly. 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. Agriculture Media Competition Consumers Education The Commission can, does and has fined companies for all these practices. A perfect competition market is a structure that contains many different companies, which means that each company individually only has a small amount of influence over the entire market. Tesco is the third largest global retailer in the world which just behind Wal-Mart and Carrefour (Baidu, 2010). Tesco's market structure described by the media is believed to be a monopoly, Tesco has also been through the legal proceedings to prove their innocence, Tesco has accused of being manipulative and gaining monopoly by building stores across towns and cities through the country and Europe but realistically Tesco is an oligopoly, although Tesco . Sometimes it is hard to do all the work on your own. The chosen organization for this study is Tesco Plc that operates in the retail industry of UK. Because the Euro would have the enhanced credibility of being used in a large currency zone, it would be more stable against speculation than individual currencies are now. How can the members have their say? This work is done using the powers granted to the OFT under consumer and competition legislation. Is made up of the wholesale sector which this means it supplies the shops which the consumers go to for their desired goods and services. 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. 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. 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. The two organisations I will be comparing and contrasting are Tesco and Sainsbury's which I believe belong to the Oligopoly market structure. OFT plays a leading role in promoting and protecting consumer interests throughout the UK, while ensuring that businesses are fair and competitive. Either the physical products can be varied in quality, features, style or the accompanying services can be varied. MARKET STRUCTURE MANAGERIAL ECONOMICS MBA SEMESTER 1 -PAYEL GHOSH 2. total sales and thus guarantee a profit out of low price. Non EU Exports. All businesses like Tescos 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. It is then checked by our plagiarism-detection software. Private goods on contrast are ones from which the public can only. One central bank cannot set inflation at the appropriate level for each member state. Tesco themselves say that it is an oligopoly, this is because Tesco is not the only supermarket in the UK, Tesco is the dominant shareholder but cannot be called a monopoly as there are many other firms which are in competition with Tesco e.g. 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). An oligopoly is most likely to have a kinked . assignments. European Union's rewards businesses and organisations, which reduce their CO2 emissions and penalises those that exceed limits. In the second part of the assignment I will describe the value of international and EU markets to UK firms. But, each and every market in the United States is completely unique from the others.. The four main types of market structures are perfect competition, monopolistic competition, oligopoly and monopoly. The four leading supermarkets in the UK supermarket oligopoly are Tesco, ASDA, Sainsbury's, and Morrisons. 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. In May 2010 the total value of UKs trade-in-goods exported to Member States of the EU was 11.3 billion. 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. Founded in 1919 by Jack Cohen, Tesco has emerged to become the biggest retailer in the UK and more than 80 million shopping trips are made to Tesco stores each week (Annual Report, 2015). In this type of competition the industry has a small numbers of large dominant firms that have a firm control over the market. 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. Effective competition to provide goods and services cuts prices, raises quality and expands customer choice. What is European Union? Competition regulators are important in business and are required to ensure equality and a fair deal for all. In this type of competition the companies are forced to follow the competitive pricing strategy in order to survive in the industry, i.e. Tesco has over 4,000 stores across the world and out of those 4,000 Tesco has more than half of them in the UK around 2362 stores and this does not include all the Tesco metro and express stores. 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 . In 2007 Tesco received the Top online green award for their zero-emission delivery vans. The imports of UK data shows that the import from the non European Union zone is increasing i.e. Noise, swimming water, rare species and emergency response -these are just some of the areas covered under the extensive body of environmental legislation that the EU has established over the decades. The European Union plans to reduce greenhouse gases at least 20% by 2020 (compared with 1990 levels), raise in renewable energy's share of the market to 20% and cut overall energy consumption by 20% (compared with projected trends). 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. with free plagiarism report. This is the reverse of the position in 1990. EU leaders launched the first EU sustainable development strategy in 2001 and updated it in 2006 to tackle shortcomings and take account of new challenges. Monopoly Vs Oligopoly In a perfect competition there are few entry and exit barriers, in this type of competition the companies target the mass audience and they differentiate their product with minor changes in the product attributes (Homogenous). Tesco was founded in the East End of London, London in 1919. Copy. Types of Market Structure . The European Commission has wide powers to make sure businesses and governments stick to EU rules on fair competition. There are three different types of monopolies listed as below: The firm needs to establish its price and output levels to achieve its business objective of profit maximization. huge efforts will be done through their sales team, the main focus is the product availability. Monopolistic Competition Market Structure: Unlike perfect . This penalty to the British Airways has been the highest ever imposed by the OFT for violation of competition law and this demonstrates the determination of the OFT to deal strongly with anti-competitive behaviour. Tesco has to focus on labor costing now in order to have a sound financial condition. 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. Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. A market structure is a tool used to determine the pricing power of certain products in diverse firms. Order your essay today and save 15% with the discount code ESSAYHELP, Don't use plagiarized sources. 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. Monopoly: When aiming to acquire competitive advantage, Tesco has three options: cost leadership, product diversification or niche strategy . 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. 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 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. It is estimated the 3.5 million British jobs are dependent on* Britains membership of the EU. Tesco is operating within an oligopoly market where the market is highly dominated by a very little number of big companies. Leadership. How has Tesco Responded to this Structure? Markets and Market Structures. Since then there have been significant efforts in terms of policy. In the United States economy most markets can be classified into four different markets structures. In economics, market structure is a term that describes the state of a market, with respect to competition. An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. Contacting their MEP and cast vote at the European Parliament elections the European Parliament enacts EU laws: (www.europarl.europa.eu) 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. Tesco's mission statement is "to be the champion for customers - to help everyone who shops . Impact of European Unions Competition policy on Tesco The European Commission (representing the common EU interest). Climate change is one of the gravest challenges facing humanity. TESCO Leadership and Organisational structure. You have to be 100% sure of the quality of your product to give a money-back guarantee. 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. The market structure where the Tesco is operating, for example in the UK, there are many other players in the market which are offering the same products as the UK, hence the price and output of the products offered by Tesco is being decided by the supply and demand mechanism. Essay. Firstly, there are several sellers but only a few big companies who have a large market share in the industry. 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. 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