Microeconomics Principles and Policy Pratices

Question: Discuss about the Microeconomics for Principles and Policy Pratices. Answer: Introduction Amidst the several industries in the world, the retail industry evolved to be one of the most affecting and largely functioning sectors. According to Price (2015), not only did the companys focus on generating an increased level of profit and provide the people with their most needed goods, they also focus on sustainability concerns. In order to maintain stability and develop productive levels, the management also largely took to understand the several micro (internal) factors that affect business and aimed to mitigate its effect. Furthermore, an aspect of maximising competencies also emerged from the same (Curtis, Lundholm McVay, 2014). As compared to any other business sector, it is noticed that the retailing industry largely depends on its internal aspects in areas of decision making and in facilitating operational functions. In order to understand the topic in a much more organised manner, the project includes a wide discussion of the Australian retail industry, its micro elements and areas of reformation. In order to fulfil targets and achieve goals, managers concentrate on identifying pitfalls and filling up gaps in an effective manner. With a goal to understand the conduct of individual characteristics, supervisors tend to undertake various functions and foresee success. Discussion As opined by Smith Agrawal (2015), the concept of microeconomics in the retailing industry is comprised of all the necessary resources that act as the backbone of companies. It is often that managers tend to identify the main components and further undertake necessary benefiting implications. Among the several number of internal aspect, customers tend to be the most important and crucial concern for firms in Australia (Agarwal, Singhal Goel, 2014). With a direct impact and power to control future of the enterprise, the clients play a key role. It is noted that the management in addition to maintain a direct relationship with its visitors focus on building up a positive perception. Moreover, modern companies like Woolworths, department and home improvements have a tendency to influence the microeconomic elements and further increase revenue generation. Moreover, the food, beverage, apparel-wear and similar other supermarket organizations also develop high products and services in ac cordance to the prevailing market situation (Baumol Blinder, 2015). Demand and supply the most vital aspect of the market mechanism system has a large influence on retail business firms. Several factors like a change in price, fluctuation in income levels, public preferences, advertising, presence of substitutes and many other similar features have a direct impact on the demand and supply curve. According to Corstjens Lal (2012), it is noted that a rise in wealth generation leads to an increase in product requirements which further influences the supply pattern. Concerning high quality of goods, there is a rightward shift of the demand pattern in the Australian market. A production of desired goods not only proves to be a win-win situation not only for the retailer markets, but also for the people of the country. On the other hand, the demand and supply pattern tends to behave in a different manner in case of substitutes and complementary goods. An increase in substitute product prices not only leads to a rise of demand for its competing good but also causes a change in the supply curve. While an opposite situation occurs in case of complementary commodities. Retailers in the industry along with their management team opt to maximize revenue generation and also gain stability in cases of Giffen, Composite, Joint, Ostentatious and Derived demand goods. As stated by Tang et al., (2014), in order to develop capabilities and lead the business to success the retail firm owners and managers largely focus on grabbing demand opportunities and provide the people with a right amount of supply. Sourcing of goods is a very crucial function for the retail firms. Irrespective of the type of retail outlet and a differentiation in products and service dealings, supply affecting factors are of great importance to the companies. For example, retail companies like David Jones, IGA, Leading Edge and several others focus on reforming their supply pattern. Concerning Australia, characteristics like government policies, production cost changes, technological developments and related good prices play the most crucial roles (Fernie Sparks, 2014). Further, despite of a few reforms in this particular segment, a mitigation model is greatly needed in the retail industry. With an expansion of interdependency, experts undertake reconstruction and reorganization of the supply design as well. According to Corstjens Lal (2012), firms like Woolworths Limited, Myer and Westfield Group largely depend on the high expertise levels of its managers who guide business decisions. Furthermore, food retailers like Red Rooster focus on developing a completely separate team to learn about market changes and thereby help the firm to develop adaptation abilities. The Australian retail industry is considered to be among the most profitable industries across the world. A change in legislative polices, like fiscal regulations, industrial regulations and similar factors tend to have an impact on the supply. An increase in tax rates lowers supplies, whereas a decrease and absence of rigid rules leads to supply rises. Raw material costs, buying preferences and market price patterns influence the delivery of goods as well. As opined by Pozzi Schivardi (2015), in case of inferior and luxury goods the retail industry tends to act in a different manner. Despite a fall in prices of products like salt and transportation there is no extraordinary increase in demand. On the contrary, a lowering in gold, silver and other luxury good prices leads to a drastic increase in demands. Conclusion Analysing the Australian retail industry it can be inferred that there exists several microeconomic factors that directly impact performance and development of a business firm. It can also be seen that the managers often join hands with the highly skilled taskforce to undertake reformations. In order to establish dominancy or maintain position in the market, organizations often turn to their individual abilities and differentiated strategies as well. Being a widely spread segment, not only the above mentioned elements, but also there exists and may arise even more affecting features in the future. Reviewing the several concepts of the project it can be concluded that it is only with proper management, control and reorganizations that will enable a retail business to progress towards success. References Agarwal, A., Singhal, A., Goel, B. (2014). A Study of Emotional SATISFACTION, RELATIONSHIP Quality Customer LOYALTY in Retail INDUSTRY.International Journal of Retailing Rural Business Perspectives,3(1), 732. Baumol, W. J., Blinder, A. S. (2015).Microeconomics: Principles and policy. Cengage Learning. Corstjens, M., Lal, R. (2012). Retail Doesn't Cross Borders: Here's Why and What to do about it. Curtis, A. B., Lundholm, R. J., McVay, S. E. (2014). Forecasting sales: A model and some evidence from the retail industry.Contemporary Accounting Research,31(2), 581-608. Fernie, J., Sparks, L. (2014).Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers. Pozzi, A., Schivardi, F. (2015). Entry Regulation in Retail Markets. 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