Supply Side Policies
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Supply side policies aim to increase the productive potential of an economy through policies like: - Improving education to increase workforce productivity and quality - Cutting taxes to encourage more labor supply and investment - Deregulation and privatization to increase business efficiency While classical economists favor free market supply side policies, Keynesians argue for a more interventionist approach, and both schools of thought disagree on the best way to implement such policies to shift aggregate supply outward over the long run.
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Supply-side policies aim to improve the long-term productive capacity of an economy by focusing on factors like incentives, skills, competition and infrastructure. Recent UK supply-side policies include welfare reforms, tax incentives for R&D and shale gas, and investments in infrastructure and apprenticeships. Higher productivity is key to improving competitiveness and living standards, but the UK has lagged peers in productivity growth in recent years due to underinvestment and other factors.
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Pricing is one of the most important business decisions management must make. This document discusses factors that influence pricing decisions, including internal factors like costs, company objectives, and product differentiation, as well as external factors like competition, demand, suppliers, and government regulations. Internally, pricing should align with a company's objectives and consider costs of production. Externally, pricing is impacted by demand for the product, what competitors charge, the economic environment, and rules set by government. The document concludes that while companies can control internal pricing factors, external factors are harder to influence and must still be considered for effective pricing strategy.
PRICING DECISIONS & FACTORS INFLUENCING PRICING DECISIONS
- INTRODUCTION
- PRICE
- PRICING DECISIONS
- FACTORS INFLUENCING PRICING DECISIONS
- INTERNAL FACTORS
- COST
- COMPANY OBJECTIVES
- ORGANISATIONAL FACTORS
- MARKETING MIX
- PRODUCT DIFFERENTIATION
- EXTERNAL FACTORS
- COMPETITION
- DEMAND
- SUPPLIERS
- ECONOMIC CONDITIONS
- CONSUMERS
- GOVERNMENT
- CONCLUSION
Lec 1 managerial economics
This document provides an overview of key concepts in managerial economics. It discusses how managerial economics uses economic analysis to help managers make optimal business decisions given scarce resources. Some key points covered include: the role of the manager is to make choices among alternatives to maximize firm value; firms must minimize costs and make rational investment decisions; microeconomics provides the methodology for analyzing supply, demand, production and costs. Porter's 5 forces framework is also introduced to analyze factors that impact industry profitability.
Chapter 21 2 supply change
Changes in supply can occur due to changes in production costs, government policies, the number of producers, or business expectations. When supply increases, the supply curve shifts right, and when supply decreases, it shifts left. Supply is influenced by the prices of resources used in production - lower prices decrease costs and increase supply, while higher prices have the opposite effect. Productivity, technology, regulations, subsidies, and producer expectations can also impact supply by affecting production costs and the quantity producers are willing to supply at each price.
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This document provides an overview of fiscal policy, including its meaning, instruments, target variables, types (automatic stabilization, compensatory, discretionary), goals, and limitations. It defines fiscal policy as government use of taxes, spending and borrowing to achieve economic goals. The main fiscal instruments are budget deficits/surpluses, expenditures, taxes and borrowing. Fiscal policy targets private incomes, consumption, savings, exports and prices. The types aim to automatically or deliberately stabilize or compensate for economic fluctuations through flexible taxes and spending. Fiscal policy pursues goals like growth, employment and stability, but forecasting challenges and implementation lags limit its effectiveness.
Tofutt04-02-15
The document provides an overview and analysis of different strategic options for Tofutti Brands, including maintaining the status quo through a stability strategy, pursuing horizontal growth through strategic alliances, and implementing a turnaround or retrenchment strategy. It ultimately recommends a divestiture strategy, where Tofutti would divest its highest value products first to generate maximum returns for employees and investors, taking a proactive approach to exiting the market given declining sales and growing competition. The divestiture strategy implementation process would involve identifying valuable business units, aligning assets with opportunities, and successfully divesting assets through planning, presenting financials, preparing, and executing transactions.
ECONOMICS FOR BUSINESS UNIT 1.pptx
This document provides an overview of business economics. It begins by defining economics and introducing some basic concepts. It then discusses the nature of business economics, noting that it is based on microeconomics but also incorporates elements of macroeconomic analysis. It is both a science and an art. The document outlines the scope of business economics, including demand analysis, production/cost analysis, inventory management, market structure/pricing, and more. It also discusses objectives, roles, related disciplines like micro/macroeconomics, economic systems, and applications of economics concepts.
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PRICING DECISIONS & FACTORS INFLUENCING PRICING DECISIONS
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Supply Side Policies
- 2. What Are they? • Supply Side Policies are policies which are designed to increase the ‘productive potential’ of an economy • They tend to be associated with the right of the political spectrum • However governments of any colour may use them!
- 3. What do they set out to do • They hope to achieve an increase in Long Run Aggregate Supply • As shown in the diagram
- 4. What is a supply side policy • Improvements to Education – Increases productivity and quality of the Labour force • Tax Cuts – Encourages an increase in supply of labour, incentive to work • Cuts to Corporation Tax – Attempts to stimulate investment from business
- 5. What is a supply side policy • Deregulation – Aims to increase efficiency as business spends more time doing business than red tape • Privatisation – Makes firms more efficient as they are ruled by Market Forces, inefficient firms go out of business • Cutting Benefits – Encouragement to work
- 6. What is a supply side policy • Curbing powers of Trade Unions – If power is reduced it lowers demands for wage rises and makes workers more flexible in working
- 7. Evaluation of Supply Side Policies • SSPs will alter the economy in the long term • Classical and Keynesian Economists disagree on the approach to them • Classical Economists want a free market approach • Keynesians look for a more interventionist approach