Microeconomics Individual Assignment
Microeconomics individual assignment ( demand, supply and market equilibrium )
We learn economics to see the world better from a business perspective, it helps us to make rational decisions and also it helps us to set our priorities. Microeconomics is a generalized analysis of consumers and firms in the market with an attempt to understand the decision-making of firms and households.it binds its concerns within the interactions of individual buyers and sellers in the market and the factors that influence the decision-making of these buyers and sellers. It has a focus on patterns of supply and demand of price output and individual markets.
Starbucks, is an American coffee company, a well-known franchise corporation by the society as it
…show more content…
To determine the price elasticity of demand for Starbucks coffee, I will differentiate it into two parts. For those who perceive Starbucks as a necessity since there are a large group of loyal customers, price elasticity of demand is inelastic in this case. Whether the demand is elastic or not is based on hop a consumer perceive it. In the other hand, income is one of the determinant to determine the elasticity.when consumer income increase, quantity demanded will also be increased. When income increase, their power of purchasing increase too, therefore people will perceive some goods as an inferior good as they can afford to consume in a higher …show more content…
They also called economies of scale refer when increasing the scale of production leads to a lower cost per unit of output. Starbucks is getting more and more branches over the world, it would be able to purchase certain inputs in bulk such as syrups, dairy goods, etc in a cheaper price, thus cause the cost of production to be declined. As the main objective for a firm to operate is to maximizing profit, Starbucks uses price strategy to profit maximization. Profit maximization is a process of determine the price and output level by the firm that produce the most profit. There are three choice can be choose between the size. Starbucks takes advantage when raising the price for tall size as people who find it will be worth to upgrade to Grande, and thus making more
Year 11 Economics Definitions
946 Words | 4 PagesThe price of a good rises from $4.00 to $4.50, and as a result, total revenue falls from $400 to $350. Is the demand for the good elastic, inelastic, or unit-elastic? The demand for the good is elastic because as the price of the good rises the total revenue falls. Good A has 10 substitutes, and good B has 20 substitutes.
Swot Analysis Of Real Canadian Superstore
546 Words | 3 PagesCompetitive Advantage & Strategy Real Canadian Superstore definitely uses growth as their work strategy. They constantly try to improve the company and add things so that they can receive more revenue. They add their own brands, such as PC, and they add departments such as Joe Fresh. They also use co-operative strategy because some store are paired up with dry cleaners to help improve both companies.
Ap Euro Dbq Individualism
675 Words | 3 PagesDuring the Renaissance, Europeans rediscovered the ideas of the Greeks and Romans, including the individualist, humanist,and rationalist beliefs. Prior to the 1300’s, it was human nature to have a life revolved around the Church. When the Rebirth started in Italy, people started valuing education, art and writing, a secular life rather than one ruled by religion. However, not all non religious people had the same philosophies on life. Many Renaissance Thinkers believed in individualism, humanism, and rationalism.
Ap Human Geography Chapter 4
1270 Words | 6 PagesSome examples that are inelastic are keyboards and pens. This concept of things being elastic or inelastic can also be incorporated into macroeconomics. Price elasticity of demand refers to the responsiveness of the consumers to a price change. For example some products that consumers are highly responsive to would be buying coffee at a coffee shop because a small price change can affect a large change in the quantity purchased. Since this product is highly responsive it correlates to this product being elastic.
Acc212 Unit 2 Elasticity
890 Words | 4 PagesBy calculating the coefficient of price, elasticity of demand by the formula the determining factor is found. E_p= Change in quantity demanded _________________________________ Change in Price When a good or service is considered elastic, the percentage change in quantity demanded brought about by a price change is greater than 1. This means the quantity demanded is very receptive to price
Toyota General Environment Analysis
1506 Words | 7 PagesPrice and demand of an item is significant viewpoint which must be considered by Toyota in promoting economy as price and demand impact purchaser what to purchase. Customer’s demands all the more in lower price and less at higher price. Price elasticity of demand is a measure of the greatness by which customers modify the amount of some item that they buy in light of progress in the price of that item Boyes and Melvin (2012). Price elasticity of demand will help Toyota to decide the amount an
Macroeconomic Factors Affecting Starbucks
707 Words | 3 PagesPolitical • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
The Importance Of Risk Management In Starbucks
1027 Words | 5 PagesStarbucks sells high quality food and brands for affordable prices. Recently, the company launched a wine collection in addition to the coffee. Now, customers can enjoy a coffee in the morning and a wine after work. This strategy will bring more revenue to the company and will put the Starbucks on the map with other great small shops. The brand has also positioned itself best coffee brand in the market by providing attractive store design, unique environment, elegant taste and high quality coffee beans (Kotler & Keller, 2009).
Starbucks External Stakeholders
1295 Words | 6 PagesBy storing and handling these kinds of data, Starbucks could analyse the data and to facilitate its product innovation in order to keep their existing customers and attract more new customers. It also helps employees to know the updated data of the demand of different kind of coffee to predict their sales revenues. It provides interaction with suppliers so that Starbucks could share the data with their suppliers to have a better forecast of the demand of coffee beans. 2.
Starbucks Differentiation Strategy
1607 Words | 7 PagesThe strategy that Starbucks uses is broad differentiation where they seek to differentiate their product offerings from rivals’ with attributes that will appeal to a large variety of consumers. The key market characteristic for the strategy of differentiation to work is that buyers’ needs and preferences are very diverse and cannot be satisfied with a standardized product offering. This is an evident characteristic of the market because consumers all have different preferences on the way they like their coffee. Which is the reason why Starbucks offers many different product options like lattes, skinny lattes, coffee, iced drinks, blended drinks, etc. They also offer fruit cups, water, and bakery items to provide even more options for their consumers.
Coke And Pepsi Case Study
1101 Words | 5 PagesIn the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
Starbucks Value Proposition
1586 Words | 7 PagesAs the competitive advantage of the company is to differentiate by delivering a unique customer experience by focusing on those four aspects Starbucks ensures that their process deliver their value proposition. The key aspect of their operations in store relates to personalisation and customisation of products as well
Ethical Issues In Starbucks
831 Words | 4 PagesIt is the long-term self-interest of Starbucks. Conclusion In conclusion, Starbucks only concern and goal is to generate profit. Thus, to achieve their goal, Starbucks is selfishly putting the small coffee retailers out of business to gain more profit and disregarding the effect that it could cause to the various stakeholders.
Kfc Pricing Strategy
748 Words | 3 PagesAccording to Wisnudewobroto (2011), KFC placed their products for high price but not overly high. However, to compete with other competitors, KFC trickle down their price for only the selected items during mealtime to focus on both middle and lower class people to penetrate both sides of the market. If the product price are too low, it might lead to customer perception that the food have a poor quality, while charging for the product too high price might cause customer to switch their preferences to other competitors. KFC also will take into consideration on the probable reaction from other competitors in the pricing
Porter's Five Forces Analysis: Calm Coffee
707 Words | 3 PagesIn this section, we use the Porter’s 5 forces model to evaluate the attraction of the industry when focus on the following 5 forces, Calm coffee faces the impact of the 5 forces, as outlined in Porter’s model. These five forces have different intensity or advantage based on Calm coffee position, as follows: This part of the 5 Forces analysis shows that competition is one of the most important of Calm Coffee need to concern. The businesses have many competitors, which have different sizes, specialties and strategies. For example, Calm faces the competitive force of McDonald’s and Starbucks, as well as other specialty coffeehouse. The strong force of competition is also because of the low switching cost, which means that the customers can easy
More about Microeconomics Individual Assignment
Year 11 Economics Definitions
946 Words | 4 PagesSwot Analysis Of Real Canadian Superstore
546 Words | 3 PagesAp Euro Dbq Individualism
675 Words | 3 PagesAp Human Geography Chapter 4
1270 Words | 6 PagesAcc212 Unit 2 Elasticity
890 Words | 4 PagesToyota General Environment Analysis
1506 Words | 7 PagesMacroeconomic Factors Affecting Starbucks
707 Words | 3 PagesThe Importance Of Risk Management In Starbucks
1027 Words | 5 PagesStarbucks External Stakeholders
1295 Words | 6 PagesStarbucks Differentiation Strategy
1607 Words | 7 PagesCoke And Pepsi Case Study
1101 Words | 5 PagesStarbucks Value Proposition
1586 Words | 7 PagesEthical Issues In Starbucks
831 Words | 4 PagesKfc Pricing Strategy
748 Words | 3 PagesPorter's Five Forces Analysis: Calm Coffee
707 Words | 3 Pages