Some exceptions to the general rules are possible. Market structures are basically the number of firms in the market that produce identical goods and services. assignments. Understanding Market Structures. Homogenous products are identical products or business e.g. The Commission also monitors closely how much assistance EU governments make available to business ('state aid'). (http://www.tescoplc.com/plc/about_us/map/) You will get a personal manager and a discount. In May 2010 the total value of UKs trade-in-goods exported to Member States of the EU was 11.3 billion. Businesses regularly have to make appeals against Commission decisions if it seems like a unfair deal. Need urgent help with your paper? To United Kingdom supermarket share . The objective of this report is to analyze on the market structure of the retail industry in the UK. European policies It follows a hierarchical structure, which truly matches the demand of the huge size of the company. In oligopoly there are many entry and exit barriers such as huge investments etc. These companies surpassed the revenues generated by Tesco Plc. 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 . 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 . 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. As Tesco manly sells general groceries they are affected by the European Union's environment policy, in a way that it has to source materials from the suppliers who obey and follow the European Union's environment policy, this means that Tesco has limited p of potential suppliers. This may lead to pockets of deeply depressed areas in which people cannot find work and areas where the economy flourishes and wages increase. 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. Retail in the UK. The objective of this report is to analyze on the market structure of the retail industry in the UK. The UK's retail sector involves a lot of spending by consumers both in shop and online. The market structure is the setting in which the enterprise receives competitive 'discipline' or through which the rule of competition is made effective. All the EU countries have different cycles or are at different stages in their cycles. They operate under a Monopoly because of their substantial market dominance and the high obstacles of entry within the retail food business. A market structure is the environment in which a business operates and relies on factors like how competitive the market is, how easy it is for a new company to enter the market and how differentiated each company's products are. The firm has to provide the markets supply, and there are. Effective competition provides goods and services, automatically raises quality and customer choices increase with competition. Tesco PLC is a British grocery and general merchandise retailer that operates internationally with headquarters in Hertfordshire, England. Homogenous products are identical products or business e.g. 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. Tesco has promised more brand marketing to help reverse declining sales. This means there is a few dominant firms in the market. support@phdessay.com. My Tesco adding eCommerce to the mainstream business model. The European Commission has wide powers to make sure businesses and governments stick to EU rules on fair competition. Copy. Language in Europe is a huge barrier to labour force mobility. This work is done using the powers granted to the OFT under consumer and competition legislation. In the second part of the assignment I will describe the value of international and EU markets to UK firms. The total 2010 year to date value of UKs trade-in-goods imported excluding June 2010 was 67.5 billion. The trend continues in the same direction until the asset price records a lower low (LL). As a comparison the total value of UKs trade-in-goods exported to Member States of the EU in April 2010 was 11.6 billion and for May 2009 was 9.3 billion. 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. Understanding what structure a company operates in is key to successful market placement. The business that I have chosen for this assignment is Tesco; this is because Tesco is a multibillion pound international business. If Tesco plans to merge with its competitor, Tesco needs approval from the European Commission, the EUC (European Union Commission) marks their decision depending on the amount of business that Tesco has within the European boundaries. Tesco was born and the first shop was opened in 1929 in north London. How can the members have their say? You have to be 100% sure of the quality of your product to give a money-back guarantee. Value of International markets to UK An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. This may lead to pockets of deeply depressed areas in which people cannot find work and areas where the economy flourishes and wages increase. 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. (https://www.uktradeinfo.com/index.cfm?task=noneufullreport) In the United States economy most markets can be classified into four different markets structures. 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. The Figure 2 below illustrates a typical organizational structure within Metro, Superstore and Extra formats. The 'Office of Fair Trading' is the UK's consumer and competition authority and their mission is to make markets work well for consumers. Perfect competition is a theoretical market structure. It operates in twelve countries by 2005. Contacting their NGOs (consumer associations, environmental pressure groups, etc.) 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. Tesco and Sainsbury's had the largest share over the period . Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. Tesco is operating within an oligopoly market where the market is highly dominated by a very little number of big companies. All the EU countries have different cycles or are at different stages in their cycles. Financial Turnaround: Thanks to the leadership of Dave Lewis, Tesco recovered from an annual loss of 6.4 billion in the annual report of 2015 to an operating profit of 1.9 billion in the annual report of 2020. The European Union has some of the highest environment standards in the world, developed over decades to address a wide range of issues. Once in a lifetime a family might make one large purchase or transaction across a European border such as buying a holiday home or a piece of furniture. The four leading supermarkets in the UK supermarket oligopoly are Tesco, ASDA, Sainsbury's, and Morrisons. A single currency should result in lower interest rates as all European countries would be locking into German monetary credibility. We'll send you the first draft for approval by. Thanks to our free revisions, there is no way for you to be unsatisfied. An oligopoly is a market structure with a small number of firms, in which none can prevent other from having a significant influence in the industry. Market structure decides the interaction of buyers with the producers. Tesco has already proven that they are committed towards being eco-friendly, Tesco Plc, the worlds No.4 retailer, plans to spend over 100 million pounds with British green technology companies over the coming year as it steps up its drive to halve carbon emissions by 2020.. News 'Have a loaf on us' to celebrate One Stop's 1000th store. By sending us your money, you buy the service we provide. Once in a lifetime a family might make one large purchase or transaction across a European border such as buying a holiday home or a piece of furniture. There is no gap where plagiarism could squeeze in. In economics, the term "market" does not mean a particular place but the whole area where the buyers and sellers of a product are spread. The Tesco Plc Company is on fourth place in terms of total revenues within the United Kingdom market segment alone. 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. 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 European Union plans to reduce greenhouse gases at least 20% by 2020 (compared with 1990 levels), raise in renewable energys share of the market to 20% and cut overall energy consumption by 20% (compared with projected trends). Barriers such as huge investments etc. highest environment standards in the UK supermarket oligopoly are Tesco, ASDA Sainsbury. 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