divided as follows:
Task One – Project. This is an individual task and will constitute 50% of your overall module mark. You must do this component of your Portfolio to pass the module.
The project brief
This task requires you to analyse the behaviour and performance of UK Supermarkets. In order to analyse the market, you MUST follow the outline below. Each item states the mark allocation and word limit.
1. As part of your project’s introduction, outline the sales trends in UK Supermarkets for at least, the past 3 years. You need credible and up-to-date data from sources such as Mintel. (5 marks / 200 words)
2. Examine the structure of the market for UK Supermarkets. To do this, you should.
a) Identify the leading companies involved in the industry and their market shares.
(2 marks)
b) Explain what kind of market structure UK Supermarkets operate in (e.g., monopolistic competition, monopoly, oligopoly, etc.), with supporting evidence.
(3 marks)
c) Compare and contrast the market structure with the three other market structures you have studied based on price, output and profit.
(6 marks)
d) Discuss major barriers to entry in UK supermarkets.
(4 marks)
(600 words)
3. Firm performance: The COVID-19 pandemic has significantly impacted various sectors of the economy, but it has also presented enormous private sector opportunities and challenges globally.
a) Evaluate the impact of COVID-19 pandemic on the performance of UK grocery retailing. Performance could include the effects on price, demand, profits, etc. (5 marks / 200 words)
b) Using economic theories, provide recommendations to one particular firm operating in the UK grocery retailing markets on maintaining a solid performance despite the economic downturn (i.e., decreased GDP, high unemployment, lower investment, etc.) of the pandemic. Your recommendations should focus on pricing, cost minimisation and profit maximisation strategies. Reinforce your suggestions with specific examples and explain the economic rationale. (15 marks / 600 words)
4. As part of your conclusion, assess the future for the UK Supermarkets or grocery retailing market. Do you foresee future growth, stagnation, or decline?
(5 marks / 200 words)
Word Limit: 1800 words maximum, excluding bibliography. Please note that a penalty will be incurred for exceeding the word limit.
Assessment criteria Weight (%)
1. Effectiveness of explanation of key microeconomic concepts and accuracy of analysis. 25
2. Level of analysis of the impact of COVID-19 pandemic on the performance of the grocery retailing market.
3. Level of discussion of three recommendations underpinned by economic theories (pricing, cost minimisation and profit maximisation strategies, respectively) (5 marks each) 5
15
4. Structure and presentation of material, including the use of the Harvard Citation and Referencing system. NOTE: your essay must include at least 3-academic (e.g., journal articles, textbooks, etc.) references. 5
Task Two – Coursework. This is an individual coursework and will constitute 50% of your overall module mark. You must do this component of your Portfolio to pass the module.
Read the following events and answer ALL THE QUESTIONS shown below.
1. The COVID-19 pandemic is classified as one of the biggest economic shocks in generations. The COVID-19 crisis and associated lockdown measures affected the prices of many products. Using demand and supply analysis, illustrate and explain how both demand and supply shocks contributed to a sudden price change of hand sanitiser in March and April 2020. Clearly identify the equilibrium prices. What is the implication of the demand and supply analysis in managerial decision making in the event of anticipated shocks to demand and supply of a product?
(10 marks)
2. Outline the concept of price elasticity of demand using real-world examples and discuss factors that affect price elasticity of demand. What is the implication of the concept of price elasticity of demand in managerial decision marking?
(10 marks)
Table 1 reports the number of units of milk produced by Firm 1 and the corresponding total revenue and total costs. Use this information to complete the table. At what output is profit maximised? Provide a recommendation to Firm 1 on the level of production using the principle that rational people think at the margin.
