A single currency would help that transaction pass smoothly. There is a lack of competition. 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. you to an academic expert within 3 minutes. 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. What results so far? The European Union has some of the highest environment standards in the world, developed over decades to address a wide range of issues. Advantages: A single currency should end currency instability in the participating countries (by irrevocably fixing exchange rates) and reduce it outside them. Market Share: According to Kantar, Tesco has 26.9% of the grocery market share in Great Britain. ?>. 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. Leadership. Our business in numbers. Tesco has increasingly looked overseas for growth with 1376 stores outside the UK; international sales of 11billion in . Due to the low degree of competition theses big giants can decide on their own price which is most suitable for its target audience and these prices will be non-competition prices however there could be potential for collusion and price fixing so that each dominant business can enjoy their market share and have profits accordingly i.e. 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). In a Monopoly Market Structure, there is only one firm prevailing in a particular industry. Make sure that this guarantee is totally transparent. It is common to differentiate these markets across the following seven . All businesses like Tesco's 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. Natural monopoly is where there are high fixed costs for example the energy industry like gas and electricity as well as water, telecommunications and the transportation industry like underground and rail. 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. Need urgent help with your paper? 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. Below I have listed the advantages and disadvantages which were discussed by the chancellor Gordon Brown at the times of between 1999 and the year 2002 when the waves of countries in Europe joined the European Union and the currency: (http://news.bbc.co.uk/1/hi/special_report/single_currency/25081.stm). The European Union has some of the highest environment standards in the world, developed over decades to address a wide range of issues. Contacting their local MP - European Union policies are part of national politics. United Kingdom supermarket share This work is done using the powers granted to the OFT under consumer and competition legislation. MARKET STRUCTURE Market structure is the interconnected characteristics of a market, such as the number and relative strength of buyers and sellers, degree of freedom in determining the price, level and forms of competition, extent of product differentiation and ease of entry into and exit from the . The Commissions extensive powers to investigate and halt violations of European Union competition rules are subject to legal review by the European Court of Justice. You can use it as an example when writing - All firms are price takers - All firms have a relatively small market share - Buyers know the nature of the product being sold and the prices charged by each firm. By sending us your money, you buy the service we provide. 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. The Price elasticity of demand measures the responsiveness of the quantity of goods sold to the changes in the products price. Thats why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe. The chosen organization for this study is Tesco Plc that operates in the retail industry of UK. Market Structure Pricing and Output Decision. The European Union is currently active in a wide variety of policies from 'human rights' to 'transport and trade'; below is the list of some of the policy areas of the European Union. Order custom essay Types of Market Structures and Competition in UK 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. 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 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. A market structure is a tool used to determine the pricing power of certain products in diverse firms. Views 1142. Perfect competition: harmony in order to life, Types of Market Structures and Competition in UK. UK Supermarket Oligopoly - Key takeaways. All the EU countries have different cycles or are at different stages in their cycles. In a perfect competition market structure, there are a large number of buyers and sellers. Tesco PLC is the leading English distribution group. The company is now one of the world's largest retailers, with more than 6,800 locations across Europe and Asia. 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. Some of the basic aims of the European Union are peace, prosperity and freedom for its 498 million citizens in a fairer, safer world. The single market benefits the firms, by making it easier & cheaper to do business in other EU countries. 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. Some exceptions to the general rules are possible. European citizens have the freedom to live, work, study, and travel in any other EU country. Sellers try to develop differentiate offers for different customer segments and, in addition to price, freely use branding advertising and personal selling to set their offers apart. This essay was written by a fellow student. Tesco makes extensive use of print and media advertising as a tested channel to send promotional messages to current and potential consumers. //= $post_title But in applying these rules, it can take account of the interests of innovation, unified standards, or small business development. Loss of national sovereignty is the most often mentioned disadvantage of monetary union. A concentration ratio is a way . TESCO Leadership and Organisational structure. Tesco management aims to reduce the cost of purchases and operational costs through and a set of other measures in order to pass the cost advantage to customer as the main brand value. 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). Natural monopoly is where there are high fixed costs for example the energy industry like gas and electricity as well as water, telecommunications and the transportation industry like underground and rail. Tesco has already proven that they are committed towards being eco-friendly, "Tesco Plc, the world's 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.". In doing business with smaller firms, Tesco cannot use their bargaining power to impose conditions which would make it difficult for their supplier or customer to do business with its competitors. your own essay or use it as a source, but you need Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. The stability pact (the main points of which were agreed at the Dublin summit of European heads of state or government in December 1996) will force EU countries into a system of fiscal responsibility which will enhance the Euros international credibility. Market structure influences the behavior of firms to a great extent. PhDessay is an educational resource where over 1,000,000 free essays are The stability pact (the main points of which were agreed at the Dublin summit of European heads of state or government in December 1996) will force EU countries into a system of fiscal responsibility which will enhance the Euro's international credibility. (Source: UK Jobs Dependent) Market structures describe the competitive environment in which a firm operates. 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. 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. ", Following are the 4 leading supermarket chains in the United Kingdom Tesco, Asda, Sainsbury's and Morrisons, these fantastic four have a combined share of 75.6 percent of the UK grocery market accord to the research done in the 12 weeks ending 1 November 2009 (Source: Kantar World pane) http://TNS_Worldpanel. In May 2010 the total value of trade-in-goods imported to the UK from Member States of the EU was 14.7 billion. Contacting their NGOs (consumer associations, environmental pressure groups, etc.) The European Commission has wide powers to make sure businesses and governments stick to EU rules on fair competition. It operates stores in various formats differentiated by size and range of products sold, including large, small, dotcom only and one-stop. Released by cars and trucks, these microscopic particles can cause respiratory diseases. Aid for research and innovation, regional development or small and medium-sized enterprises is often allowable because these serve overall EU goals. But in applying these rules, it can take account of the interests of innovation, unified standards, or small business development. 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: 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. European policies In March 2015, UK consumers spent around 34 billion. Employment Environment External trade Fight against fraud Human rights Tesco focuses on attracting customers through its signature low prices strategy. Best Essay writing tips, 10 Tips on How to Write a Good Article Review, Best Tips on How to Write an Annotated Bibliography. It operates in twelve countries by 2005. Market structure decides the interaction of buyers with the producers. They may have differentiated products. There may be a large number of firms, but most are small and relatively unimportant, while a small number of large firms produce most of the outputs of the . One central bank cannot set inflation at the appropriate level for each member state. Tesco PLC is a UK-based global supermarket chain and it has 7817 shops and 517,802 employees around the world. In the UK market, it is very crucial to determine the quantity of output in order to keep check on pricing and related decisions. Among the most well known forms of oligopoly are in. number: 206095338, E-mail us: In November 2007 Tesco one of the top three largest UK Supermarket chains and a major global retailer opened its first stores in the USA under the brand name 'Fresh & Easy'. Life, Types of market Structures and competition legislation, work,,. Of innovation, regional development or small and medium-sized enterprises is often allowable these. 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