Market Structure Assignment Help

Market Structure Assignment Help

Task 3

(a) In the changing business environment, explain how market structures and market conditions determine the pricing strategies of LLOYDS business

Market structure is the linkage of the market features that are called as the strength of the buyer, seller as well as the level of conspiracy into the market, competition forms, easy entrance and exit in the market, product differentiation and the competitors. Two market structures are described as the monopoly and monopolistic. Structure of market specifies the pricing and output decisions that are explained as below:

Monopoly – in monopoly market structure there are large nuMarket Structure Assignment Helpmbers of sellers and buyers is present into the market. All the decision regarding the output and pricing decision is made by the one seller. In this market structure all the products and services are provides to the consumers at the high rate as there are no other buyer present into the market. By using this strategy in the LLOYD’s organization helps it to increase the profit and revenue of it.

Monopolistic – in this type of market structure there are several competitors and sellers available into the market. So in order to survive into the market LLOYD’s has to develop some effective strategy in order to sustain competitive advantage. This structure influence the business activity of the organization there are various seller affect the revenue and profit of the organization (Sloman & Jones, 2011).

Organization pricing and output decision

Structure of market is considered as the base for the organization because there are various types of organization and they all have different or similar products and services. In the case of unique product that is only sell by a organization then the structure of market is considered as the monopoly and in the case of different products   the structure of market is consider as the monopoly. These both structures are helpful to identify the output and pricing decision in respect to the organization. by using the Monopoly market structure LLOYD’s can sell its products and services in whatever price it wants to sell as there are no other competitor into the market but by following monopolistic market structure LLOYD’s has to maintain and set the price of product and services according to the other organization as there are various competitors available into the market (Täuscher, 2015).

(b) Illustrate the way in which market forces shape organisational responses in setting prices within operating environment

Forces of market describes as the economic factors that influence product, pricing, demand, availability, services of the organization. There are various forces into the market such as demand, supply, technology, etc. that affect the business activity of the LLOYD’s organization.

Supply- supply shows the product’s and service’s quantity in respect to the LLOYD’s organization. Supply is the factor that is fully dependent on the demand as there is no demand for a product and services generates then there would be no supply for it. And on the other side if the demand of any product and services will be increased that leads to increase the supply of that product and service. Demand and supply of the products influence the margin of profit of an organization and when the demand of the product and services is increased that leads to increase the prices of the products and services. In order to maintain the supply of the products LLOYD’s organization should analyse the market demand for that particular product and develop product accordingly (Viner, 2013).

Demand – demand is the quantity of the products and services that are required by the potential customers. Demand is the only factor that can influence the sales and profit level of the organization. This factor changes the LLOYD’s organization responses. For instance, if any product and service has the highest demand into the market in that situation the prices of the product and services are increased and that leads to increase the revenue of the organization. It normally happens when the consumer is loyal towards a particular product and services then the prices of that product is supposed to be increased and they do not have any other option and that provides benefit to the organization as it revenue and profit is increased. LLOYD’s can handle the situation of the increase and decrease demand into the market as if  the demand of any product is increase that leads to the generating more profit for the organization and if it deceases then organization could develop the effective strategy then helps to increase the demand of the product and services.

(c) Explain how the business and cultural environment in the UK can shape the behaviour of LLOYDS as an organisation

Impact of culture on the business

Culture is a factor that influences the business activity of an organization. In the United Kingdom there are immigrants have came from the different – different countries in search of employment and business. Culture of an individual person forces him or her to perform accordingly. For example, if culture of any person force him or her not to eat meat then it would not eat that and the culture of the Muslim people is that they need to have meat in their all food. So, the culture of the people make impact on the demand and supply as well as the revenue of the organization.

The behaviour of the LLOYD’s organization could be changed by the external and internal environment of the business. There are various factors into the business environment that influences the smooth running of the organization. With the help of PESTLE analysis the effect of these external factors in analysed in respect to the LLOYD’s organization (Porter, M.E, Kramer, & M.R, 2011).

Political factors – political factors includes the policies of government, international trade, taxation, etc. These are the several factors that are responsible to affect the business activity of an organization. For example, the policies of taxes are keep influencing and that make impact on the budget of the LLOYD’s organization as it has to pay more taxes according to the revised government policy.

Economic factors – this factors includes the unemployment, exchange rate, income level, deflation, inflation, rate of stock market, etc. these factors are responsible to influence the sales and revenue of the organization. for example, if into the market there is a situation of the inflation arises that decreases the value of money and all the things will be sold on higher rate and that will not be preferred by the customers as the same product was selling at the lower time before the inflation that affect the sales of the LLOYD’s and revenue will be decreased due to this (Paul, 2011).

Social factors – social factors includes the choices, preferences, cultural perspective, attitude, income distribution, etc. these factors affect the choices and preferences of the potential customers. For example, if the culture of any person does not allow him to eat non vegetarian in that case the preferences and choice of that person influence the revenue of the organization (Mitchell, 2011).

Technological factor – these factors includes the updated technology, new product development, rate of technical obsolescence, etc. for example, if there are new technology introduced into the market then the customers will not prefer the obsolete technology as they want the product with the latest technology. So, organizaito0n should be up to date regarding with the upcoming technology coming into the market as this factor can affect the revenue of the LLOYD’s organization if it will not provide the services and product that are desirable by the customers.

Environmental factor – there are various environmental factors that could affect the smooth running of the organization. Environmental factors includes the natural calamities, wastage of raw material, etc. for example, if in the United Kingdom if there is situation of the natural calamity such as earthquake occurs that could influence the business as the products of the organization could be damaged in that.

Legal factor – these factors includes the employment law, competition law, company law, health and safety law, etc. There are various rules and regulations are described in the company act in respect to the operations and functions of the organization. So, LLOYD’s should take into consideration all the rules and regulation before performing any activity or before developing a new product (Mitchell, 2011).

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