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managerial economics

1. 1. Critically evaluate the impact on the UK supermarket sector of the immediate economic uncertainty created by the decision of the United Kingdom to exit the European Union. 900 wordFor this question please briefly state the the uncertainity caused by brexit but majorly concentrate on the value of pounds after brexit, discuss the shift on the supply curve causing prices to increase and also illustrate this with a supply graph showing the increase
Secondly after this bring in the concept of price elasticity of demand, given the nature of supermarket do you think demand will fall because of the price increase
NOTE use supply and demand analysis and graphs to illustrate it. weakening of pounds will cause a shift of supply curve because a lot of foods are imported
“The key players in the UK supermarket sector do not currently seem to follow the form of behaviour expected from an oligopolistic market structure”:
a) To what extent is their behaviour justified given the key drivers for change in the industry? 800 words(25%)
you need to spell out what oligopoly is, how they behave and why, discuss uncertainity ,interdependence,incentive to co operate(prisonners dilemma).orice stability, non price competition.then you need to constrast it with current situation ie price war conflict between reality and theory. then explain why by linking it to the key environmental changes that has occurred in this industry for the past 8 years
2b b) Critically evaluate the current competitive position of Waitrose. 800 words (25%)
you need to get datas on waitrose market share/market growth. Explain what is going on and importantly why
3. The annual report and financial statements 2015 of J. Sainsbury plc state:
“Our values remain at the core of our business and are part of our long term strategy for growth and make good business sense”.
To what extent are such value statements consistent with the traditional economic theory of the firm? 800 words (25%)
you need to identify its core values and then proceed to analyse them in terms of traditional theory of the firm ie profit maximization or the alternative

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