Sunday, November 10, 2019
Demand difference/ focus of a business Essay
Methods: cause, solution(s), ED ( Elasticity of Demand), challenges, effects. Cause The main cause would be origin, LUMOS is based in the UK, has an British founder and aims on the British public. However this does not mean that all the marketing they produce is reaching British people. Since the fund is all about helping children in poor European countries and not aimed to only help British people, they receive a high percentage contribution from other counties as well. Solution(s) More attention can be received by using J.K Rowling giving a message, I think LUMOS can use het in their advantage compared, especially to other non-profit organisation. The message will be received worldwide since her books are an universal best- seller and not just in England. Another solution to make the international public more appealed to contribution to LUMOS is by starting to focus on other languages as well, like a Dutch website with a euro system ( they use pounds ) this makes it more complicated for people who have a basic or lower level English. Money available should go to promotions in the Netherlands, LUMOS is very unheard of in the Netherlands. PED The demand in the Netherlands is less than in the UK because the advertisements and promotion is kept in the UK. The demand to donate to LUMOS is 70% less from Holland compared to the UK. Percentage change of price has been replace by percentage change in advertising. % advertising PEA= x 100 % in demand Advertising There is 100% in the U.K % A = 20% There is 80% in The Netherlands There are Ã £9.834.037,- donations made in the UK. There are Ã £3.947.394 donations made by Holland. The change 5.886.643 % =x100x 100 = 149% Original figure 3.947.394 % QD = 149 % 13.4 Challenges: Making LUMOS well known and accepted in the Netherlands by making promotion and other communication tools Dutch. Effects on the business: There will be more contributors both from Holland as well as other parts of the word (note world-wide message for J.K Rowling) Environment 1B Business: Mc Donalds Environment difference: Demand difference Counties: Netherlands Ã¢â¬â UK Methods: cause, solution(s), PED ( Price Elasticity of Demand), challenges, effects. Cause The cause of a demand fall in the U.K compared to the Netherlands is because of the *1 difference in target tastes in both counties and *2 because of the prices in pounds ( inflation) Solution(s) To cause *1 -Get to know the (target) audienc(es) better so they can adapt their products to the consumers tastes. Ã¢â¬â offer more options in the menu to choose from. To cause *2 Ã¢â¬â lower the prices by finding cheaper suppliers or lower them and make less profit calculating from the same amount of Demand, however this might be a very good idea. (See PED) PED ( Price Elasticity of Demand) The following formula can be used to measure exactly how responsive demand is to a given price change: ( ceterus paribus ) Ed = The price elasticity of demand Ãâ = Ã¢â¬Ëchange inÃ¢â¬â¢ Qd = Quantity demanded P = Price A Prices from mc DonaldÃ¢â¬â¢s fall 17.8% Demand rise with 23.4% B Prices from mc DonaldÃ¢â¬â¢s fall 10% Demand rise with 3% ( nobody really notice) This means that Price and Demand are inversely related ( Ceterus Paribus) Calculation: A -17.8:23.3= -.763 -10:3:3= -3.4 = elastic, or A is the best option. Challenges. Disequilibrium: since Mc DonaldÃ¢â¬â¢s sells consumables the products have to be sold quickly otherwise it would creating a surplus in stock. But if either the prices are lowered or the food adapted to a more university liked taste the position would be equilibrium which in turn would create a shortage or an equal position. So the challenge is to estimate the higher number of sales so they can calculate the right stock and amount to purchase at the supplier. Effects There will be more or an equal number of consumers at the Mc donaldÃ¢â¬â¢s in the UK compared to Holland. Some things are going to have to be changed, like I mentioned the purchases in stock.