BUSINESS ECONOMICS Essay Example | Topics and Well Written Essays - 1250 words

BUSINESS ECONOMICS - Essay Example This paper will discuss the concept of elasticity and how a government tax on a product -- in this instance, cigarettes -- can affect the business firm in terms of how much a specific tax on cigarette can be shifted to the buyer and how much has to be absorbed. Price elasticity (Ep) of demand is the ratio of the percentage change in quantity to the percentage change in the price of a product or service, all other things remaining unchanged. Algebraically, this is expressed as follows: where P and Q are the price and quantity, respectively. This formula assumes point elasticity instead of an arc price elasticity for simplicity sake, as our objective of understanding the concept of elasticity can be sufficiently served by this simple assumption. Price elasticity measures how responsive the sales would be in relation to changes in price. Products and services inherently have different price elasticities, so that managerial decisions on expansion or reduction of output would depend to an important degree on how accurate are the determination of such elasticities. At the outset, we may consider the benchmark elasticity = 1 as indicating that a percentage change in price is just equaled by the same percentage change in quantity demanded. Where demand is somewhat less responsive to changes in price, we can say that demand is relatively inelastic -- that is to say, a percentage increase in price triggers a lower percentage change in quantity demanded. Demand is relatively elastic when a change in price causes a larger percentage change in quantity demanded. A vertical demand curve denotes perfectly inelastic demand with an Ep of 0, whereas a perfectly elastic demand would be a horizontal demand curve with an Ep of infinity ( ∠ž). An important elasticity criterion is whether a good is a necessity or a luxury. A necessity has an inelastic or relatively inelastic demand curve. A good that is inessential (or a luxury) has a relatively elastic demand curve;

TopShop - The Marketing Story Essay Example | Topics and Well Written Essays - 1500 words

TopShop - The Marketing Story - Essay Example Fashion customers are ever demanding for something new, original and creative for a marketer it is very tough and demanding to provide for. TopShop a leading UK chain of fashion clothing and accessories which caters for this need for the highly fashion conscious market. This store has risen to cult status and is one leading brand name in high street fashion. What makes TopShop click? TopShop implements aggressive marketing strategies. It is constantly there in the minds of people. The positioning is extremely strong. Marketing strategies have to be designed and modified according to the market conditions.This is required for the success of the strategies. We are going to analyse the designing and implementation of various marketing strategies as per the changing external environment. Let us look into history of TopShop. TopShop was launched in 1964. It is a branch of Arcadia group. It started with a concept of high end fashion. Today TopShop doesn’t attract only high end shopp ers. It is a fashion destination for ramp and catwalk fashion seekers as well. It is an excellent example of high end meets catwalk. The flagship store is located at oxford circus with a whopping 90,000 square feet area where the daily footfall is 200 000 and more customers and almost more than half of them shop something or the other in the other. Marketing Strategies implemented by TopShop: 1. Logic of high end meets catwalk: Catwalk fashion is inaccessible, not wearable and expensive for a common fashion seeker. Combining the cost and the cuts makes TopShop click. This enables to provide for maximum fresh looks in a given season for the shop and increases sales. 2. Cost: TopShop costs are perfectly balanced, not being cheap and not being expensive either. 3. All in one shopping experience: TopShop provides accessories, bags, shoes, etc. under one roof. For men’s shopping it provides game zones, relaxing zones etc. So shopping is not perceived as a cumbersome and compulsory activity as usually perceived by men. 4. Supply matching with the demand: Fashion marketer needs to cater the market at a top speed. TopShop keeps pace with the demand by aggressive supply to the shops and chain it has set up. 5. Personalised services: TopShop has set up personalised advisors for guiding fashion seekers. Topshop takes pride in the fact that these style advisors are like walking catalogues on the shop and are available for help. 6. Celebrity branding: TopShop has always roped in celebrities like Kate Moss, Beyonce, Victoria Beckham for its promotion adding to the glamour quotient of the shop 7. Supporting new designers: TopShop supports upcoming designers to showcase their work. This gives the shop an advantage of setting new trends in the market with fresh cheerful designs PEST Analysis for TopShop This analysis is used for analysing external factors affecting an organization. All the marketing strategies mentioned above have helped TopShop set up in the domestic e nvironment. As confirmed by SWOT analysis and life cycle curve, TopShop now needs to look beyond the national boundaries. TopShop with its aggressive expansion plan has already stated that it intends to move abroad for an excellent growth opportunity. Let us analyse TopShop’s current marketing strategies with respect to the external environment of emerging economies where TopShop is set to expand: 1. Political factors: Description: For business to survive, sustain and grow a stable political environment is required. The degree on intervention a government will have in businesses and economy also makes a difference for the business. Political decisions make or mar the businesses. What is also needed to be seen is the development of infrastructure and education of the workforce, both directly connected with the political factor in PESTEL affecting businesses. UK: Political environment is stable. TopShop has seen various governments coming from the headquarters of Conservative o r Labour Party. However the government has managed to provide excellent