MIcro and Macro Economic Analysis Assignment Example | Topics and Well Written Essays - 1250 words

small and Macro Economic Analysis - Assignment ExampleSpeculations in the determines of oil causes the requirement to rise or fall in various times of the year. For example, oil products ar greatly demanded in countries experiencing winter because they are used for heating purposes. On the different hand, the supply of petroleum products is mainly dependent on the prices of cutting oil, technology and the availability of qualified personnel to extract the products. It is also highly dependent on the semipolitical instabilities prevailing in OPEC countries (Etro, 2009). These countries usually brook control on the supply and pricing of the product or so the globe thereby affecting the profitabilitys of many petroleum companies. b) Explain The Market twist In Which The Chosen Company campaigns With Regards To The Chosen Product The British Petroleum Company is found in the oligopoly structure of the marketplace. This is because there are fewer sellers of the products aroun d the globe. They are also highly sensitive to the other companies pricing along with their strategies of marketing. In this market structure it becomes actually difficult for new entrants to join the market. The sellers in this market structures are always aware of the strategies that their competitors are using. There are several competitors for the company who have branches all around the globe though there are many restrictions that have been placed to legal profession entrants into the industry. Dealing in petroleum products also requires real high capital and is also a very risky business due to the risks involved (Dunn & Mutti, 2004). c) Explain What The Company Can Do To Continue To Operate In This Profitable Market Structure Or Move Towards A More Profitable Or Sustainable Market Structure In order to continue operating profitably in this market structure, the British Petroleum Company needs to adopt more efficient technologies that aid in their geographic expedition ef forts for newer sources of oil. The company should further invest in the exploration of non-conventional raw materials since the current sources are in very high demand and are nearing depletion. For example, the company can invest in exploring more into the field of oil sans which could yield a lot of untapped resources. These measures will eventually assist the company in countering the uncertainties that use up the pricing of crude oil. For example, the recent civilian uprisings in the Middle East greatly unnatural the prices of oil around the globe leading some trading companies into encountering losses (Mankiw, 2011). d) Comment On The Different snatch Concepts That Can Influence The Pricing Strategy Or The Competitiveness Of The Chosen Product/Company. The product is affected by various duck soup factors of demand and supply. The elasticity of demand that usually affect the products are the price elasticity, income elasticity and cross elasticity between different companie s. The price elasticity usually refers to the changes in the quantities of the products demanded in relation to the changes in the prices of the products. The income elasticity mainly refers to the changes that the company experiences in its income in relation to changes in the demand of petroleum products. The British Petroleum Company is also greatly affected by the cross elasticity that exists between different firms (Gwartney, Stroup, Sobel & MacPhearson, 2008). This type of elasticity is responsible for measuring the