Students should choose a topic in microeconomics to discuss and look at a business to determine and all case studies should be ideally done on UK based companies.
-Students should be able to show a basic understanding of, and be able to apply, economic models and concepts in the analysis of current economic and business issues.
-Students should be able to communicate information and theoretical concepts, clearly and effectively
-Students should be able to explain how business organisations function within, and are affected by, their environment
Tools to consider when doing the coursework:
-Economic concepts: scarcity, opportunity cost, economic systems, reasoning and models.
-PESTLE analysis/Porter's five forces
-Fundamental principles of microeconomics (supply, demand and elasticity)
-Demand and the impact on consumers
-Supply decisions. Production, costs, revenue and profit maximisation.
-Market structures. Perfect competition, monopoly, oligopoly, monopolistic competition.
TOPIC: Monopolistic Competition in Relation to Innocent Drinks
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Monopolistic Competition in Relation to Innocent Drinks
Innocent Drinks is a corporation that operates in the highly competitive beverage industry. Smoothies are some of Innocent's essential product in the market. The Innocent smoothie comprises of entire squashed leafy foods, yet different fixings, for example, carrots and ginger have been utilized as a part of a few beverages. Guiltless likewise makes smoothies, natural product tubes and juice for children; a not-from-concentrate juice range; noodle pots and veg pots and a scope of prepared dinners. As such, Innocent Drinks Company launched another scope of 'super smoothies' in March 2014. The fact that the company operates in the competitive global beverages market exposes it to stiff competition posed by Coca-Cola that owns 90 percent of Innocent drinks, Tropicam products, Peppersmith, Pepsi, Michel et Augustin, and many more other competitors in the monopolistic global beverage industry that has many producers with differentiated products in the market. The aim of this paper is to discuss Innocent Drink’s competition in the smoothies market and examine its mode of operation.
Monopolistic Beverage Market Competition
Monopolistic market competition is a business structure that several business entities described as comparable yet indistinguishable, and, as a consequence, firms compete on different elements other than cost (Rothbard, 2013). The monopolistic rivalry is at times alluded to as defective rivalry because the business sector structure is between unadulterated syndication and perfect competition. In all cases, monopolies dominate the entire market with over seventy percent market share. However, Innocents Drinks is not a monopoly.
It is worth noting that monopolistic market competition exists when an extensive number of dealers, with a little piece of the pie, little relationship among firms to value their item with little respect regarding how the opposition will respond and where there is minimal possibility for the agreement to settle costs or prices. Notably, firms exercises control over cost; however, it is restricted by the nearby substitution of the product that is traded in the market.
One of the characterizing qualities of a business is that there is a lot of non-value competition. Firms might compete in the market without a real cause because they determine both market share and product costs. This implies that product differentiation is the key aspect for any monopolistically focused firm. Item separation is the procedure of recognizing an item or administration from others to make it more appealing to meeting the respective objective of the business.
Advertising or product differentiation is the procedure of depicting the contrasts between products. It is done keeping in mind the end goal to show the distinct parts of a company's product. In financial matters, effective...