Thursday, December 5, 2019
Different Structures of Market-Free-Samples-Myassignmenthelp.com
Questions: 1.How market structures determine the pricing and output decisions of the Business. 2.How market forces shape Organizational responses. 3.How Coca-Cola responds to changes in the external environment. Answers: 1.Different structures of market exist in different economies, sectors or goods. This explains why there exist a different kind of pricing and output decisions. Except in perfectly competitive markets, output and pricing decisions depend on each other (Hardison 2011). This is because a business firm operating in the perfectly competitive market is very small and the market cannot have an impact on pricing decisions. In this type of market, the business has little control over the price and thus it uses the prices given and decides on the quantity to supply. In such kind of market the prices and the marginal cost are equal (Rodgers, 2017). In the perfect competition market structure several factors determine the pricing of goods and services. One of these factors is the equilibrium between demand and supply, perishability of the goods. According to Rodgers, (2017) in the a monopoly market the company change the price since it is the only one providing the goods and services and thus h as total control over the market. In this this type of market the output and pricing decision can be determined by the demand in the market. Therefore, when the demand is high the prices are low and when the demand is low the prices are high. The oligopoly market structure pricing and output depends on the relationships that exist among different firms. A business structure is mainly determined by the number of buyers and sellers in the market. 2.Market forces refer to the forces of demand and supply affecting the price and quantity of items operations in organizations hence focus trying to understand, predict and at times influence the demand for their services or products. The organization will work on the affected prices ensuring that there is a benefit in such an impact (Herring 2016). When the demand is high for a product, the organization increases the prices in line with the demand, which increases the equilibrium price. In this case, the supply is assumed to be constant. When the supply is higher than the demand, the organization required to reduce the prices maintaining or increasing their revenues and guarantee profitability and in this case assuming that the demand is constant (Buschi 2013). According to Buschi (2013), a product or a service may be viewed and perceived differently by different customers. There is a big deviation from what service provider and a marketer intended with a product or a service to a customer. This has a great effect in todays attention economy where everybody is informed than ever before. Due to the many differences, the organizations develops a strong relationship between customers and the company which is no longer based on features like price and quality alone. It is focusing on how fast, efficient, and reliable the process is. That makes or breaks the relationship. 3.According to Free, 2016, Coca-Cola is the leading soft drink producer and supplier in the whole world. There are many restrictions and regulations related to the supply of the soft drinks. PESTLE analysis of the company can be used to illustrate how Coca-Cola responds to the external environment. Political factors The Food and Drug Administration in the US is an agency with the responsibility of protecting and promoting public health by controlling and supervising the food safety and drug products (US Food and Drug Administration 2012). The agency formulates regulations and laws to control the quality of foods. Coca-Cola, therefore, must meet the regulations to continue supplying its products. Economic factors Coca-Cola has a wide range of products which are supplied in the market worldwide. Considering the diverse tastes, cultures, customs, and desires of the customers the company produces a wide range of brands with different flavors to accommodate or the customers (Regassa Corradino 2011). Social factors Coca-Colas products are designed to meet the demands of different cultures for instance in the US the people are in need of healthier products, and the company has started replacing sugary products with water and tea (Frue 2016). Technological factors Coca-Cola uses modern technology in manufacturing its products to produces higher quality and quantity of goods. The company extensively utilizes modern technology such as social media to advertise its products. Legal factors. Coca-Cola ensures that all its products are patented so as to retain its business rights. Environmental factors The production process of Coca-Cola is highly influenced by the availability of water. Any change in climate that may affect water availability may be detrimental to the production process of the company and may lead huge losses. The company, therefore, has to adhere to environmental laws in its production process (Frue 2016) References Buschi, H. 2013, Market Forces: How do market forces shape organizational responses?. Prezi. Available at: https://prezi.com/nek6xqaod29_/market-forces/ Frue, K. 2016, PESTLE analysis of Coca-Cola. Intuit Quick Books. Available at: https://pestleanalysis.com/pestle-analysis-of-coca-cola/ Hardison, K. 2011, How do market structures determine the pricing decisions of businesses? eNotes. Available at: https://www.enotes.com/homework-help/how-market-structures-determine-pricing-decisions-290148 Herring, K. 2016, How do market forces shape organizational responses? Why does it happen so? Available at: https://www.quora.com/How-do-market-forces-shape-organisational-responses-Why-does-it-happen-so Regassa, H., Corradino, L. 2011, Determining the value of the coca cola company a case analysis.Journal of The International Academy For Case Studies,17(7), 105-110. Rogers, V. 2017, How to Determine Price in Each Market Structure in Terms of Maximizing Profit. Chron Articles. Available at: https://yourbusiness.azcentral.com/determine-price-market-structure-terms-maximizing-profit-29061.htmlUS Food and Drug Administration. 2012, FDA Overview.