Fmcg Industry Analysis

It is a range of production levels where standard cost is minimized and companies attain regular returns to scale. It changes from industry to industry relating to the type of cost structure in a specific branch of the market. If the Minimum Efficient Scale is small compared to total market size, a lot of firms can exist in the same place. In contrast, if the minimum efficient scale is quite enormous caused by high fixed costs, only few basic players can be predominant. High quality and low quality companies have unexpected cost curves and they do not have the same minimum efficient scale.

The Trans Mountain pipeline has characteristics or properties of Natural Monopoly, so it falls into the products of natural monopoly. When there is an economic of scale, that is, average cost decreases as quantity increases, the natual monopoly occurs. As a result, one firm is able to supply total amount of the products at a lower cost in the market than two or more firms. If the govenment does not regulate the Natural Monopoly, it may not benefit the social welfare and the optimal outcomes. In other words, they will produce much less and charge a higher price than social optiaml lead to a high price,low average costs and high profits.

Less developed countries, such as African countries, largely depend upon single primary commodities for economic growth. There are several drawbacks to such a reliance on a primary product for the growth of the economy (Stein 1970: 607). Such economies are not able benefit from comparative advantage, due to the inability to direct resources towards other sectors, such as industry, with a greater potential for growth (Stein 1970: 611). According to Nafziger (2006: 611), less developed countries are “vulnerable to declining terms of trade due to the inability to shift resources to accommodate shifting patterns of comparative advantage”. Additionally, manufacturing exports are produced at a much faster rate than primary products.

Existence of few sellers - Few sellers dominate the entire industry and influence the prices of each other greatly thus controlling the market. b. Restrictions in entry – In an oligopolistic market businesses cannot easily enter the market. Its dominated by the existing merchants/businessmen which creates imperfect competition. Restriction or barriers are lesser than monopolistic market.

Research and Development: As the production arm in the joint venture, General Mills has been increasing its research and development budget in this area steadily since 2003 to reach $191 million in 2007 to the sum of more than six percent of its total sales . The company extended its R&D function to include the manufacturing process and not only the products. On the other hand, Kellogg who invented the category spent $179 million in 2007 which represents about one percent of total sales in the same year. Kellogg is continuing to support its W. K. Kellogg Institute for Food and Nutrition Research centre to develop and enhance new products. Production: General Mills has more than tripled the number of production facilities of the market leader and key competitor, Kellogg.

According to numbers of the UN there were around 154 million international migrants in the world in 1990 which has risen to an all-time high of 232 million international migrants in the year 2013. This proves that we as humans are constantly on the move. Nowadays it is argued if immigration has a positive influence on the economy in countries all over the world and that immigrants contribute something to the economy of a country. The question: should we consider immigration as a positive influence on the global economy, is raised. Immigrants and the global economy is a complex issue, there are many different opinions and the perspective of some people is just based on their anxiety.

In my opinion I think that David jones targets a vast amount of their products towards those with a disposable income. David Jones would target those from ages 18-65, as those are likely to have jobs with a reasonable income to afford the company’s products. The items that David Jones sell is those of reasonably high end brands e.g Chanel, Dior, Versace, etc. They do also offer some mid range brands such as Country Road and MINKPINK. These brands particularly target those with a high income so the prices of their products tend to be more expensive than Target or Big W. These high end brands majority of the time produce a good quality item, leaving the consumer especially the younger ones wanting more.

Despite the areas being mainly low income, prices for produce are steep. Causing families to either plan

Push factors include low wages, high unemployment rates, and lack of health care while pull factors include high wages, low unemployment, better standards of living, high quality education, etc. It is particularly these factors that incline individuals to move from one place to another taking considerably less consideration of how life in their home country is. And hence, according to Daugherty H. G. and Kammeyer K. W.1995, migration activities are mostly a result of economic opportunities elsewhere. Ernest Ravenstein has also mentioned that migration leads to further migration, so a variable could possibly be set up for

The secondary labor market, which is usually part time or temporary work, low paying and has high turnover rates. These jobs usually consist of service sector jobs. Also jobs that have a high likely hood to being replaced by technology, as they can be highly repetitive jobs. The primary labor market, which is filled with primarily full time, high paying jobs with low turnover rates. For some those who work in the secondary market the jobs can be starting points, from which they may make the transition.