Friday, June 20, 2014
Wednesday, June 18, 2014
Economic Integrated Assignment
Integrated assignment for economics
1) Five factors of demand
There are many factors that affect demand. Examples of factors of demand is price, level of income, price of related goods, consumers “taste”, and the tendency of consumers predict the price.
When price of a good increases, then the quantity demanded for that good will decrease assuming ceteris paribus condition. For example, if the price of Tesco products increase, the quantity demanded of it will decrease. This is because consumer is more into cheaper product. They can go for other hypermarket for a cheaper product.
(Factors below are assuming that price is ceteris paribus.)
Level of income affects demand. If level of income increases, the quantity demanded of the good will increase. For example, if a person’s income increases, the amount of shopping they do will also change because they have more money to buy the same price of goods. Such as , at income level of RM3000, the person able to buy 100 t-shirts with RM30 each. When the person's income increase to RM3300, the person able to buy 110 t-shirts with RM30 each.
Price of related good can affect demand. For example, butter is a substitute of margarine. When price of the margarine increases, the quantity demanded of butter will increase.
Consumers “taste” can affect demand. Consumers will purchase goods that they prefer rather than ordinary goods. For example, youths would prefer to shop at Tesco rather than Carrefour.
There is a tendency for consumers to predict the price of a good in the future. This also affects demand. For example, if consumers know that the average price of Tesco products will increase tomorrow, consumers will stock up on the products today.
2) Three factors of demand in sustaining green environment
One factor of demand that can help in sustaining a green environment is price. Tesco Hypermarket’s can reduce the price of environmentally friendly products or they can even conduct promotions for these environmentally friendly products. This will encourage customers to buy environmentally friendly items as they are cheaper and also help the environment even more. This will result in the product becoming a substitute for the products that the customers usually buy. This is because this environmentally friendly product has become an opportunity cost to the consumer. For example, Tesco Hypermarket’s sell recycle bags that are durable for only RM 5. This is to encourage customers to buy their recycle bags to reduce the amount of plastic bag usage.
Here is an video of Tesco UK promote how to reduce the usage of plastic bag.
Besides that, a factor of demand that can help in sustaining a green environment is level of income. Tesco Hypermarket’s sell environmentally friendly products that are cheap and are durable for the long run. They do this because the level of income of each households varies. Families who have average level of incomes will buy the environmentally products because it is not too costly and is good in quality. This in turn also cater for families that have high level of income. Families that have high level of income will also turn to buy these products because they are opportunity cost of the goods that perform the same function. For example, Tesco sells premium environmentally friendly toilet paper that are cheaper than regular toilet paper. This toilet paper also comes in a larger quantity.
Lastly, “taste” of a consumer is also a factor of demand that can help in sustaining a green environment. Tesco Hypermarket can conduct campaigns or social awareness plans to try and convince their consumers to buy environmentally friendly products. Although consumers might have different “taste” in buying their favourite products but with Tesco Hypermarket’s action to try and convince their consumer to buy environmentally friendly. The consumers “taste” might change and soon spread to their friends and families. This will also lead them to buy environmentally friendly products. For example, Tesco Hypermarkets launch a project on the 19 March which is called “Green Bag Green Point”. This campaign is to encourage customers to use their own shopping bag. Besides, encouraging their customers to use their own shopping bag, this also reduces carbon emission and reduces the usage of plastic bag. Thus, promoting and encouraging the consumers to change their “taste” to buy environmentally friendly products.
Analysed of changes in price, level of income and price of related goods. All survey questions is conducted with 10 customers
Questions asked in survey for customers
1) If the average price of products for Tesco Hypermarkets has increased will you still shop here?
2) If your level of income were to increase will you shop more frequently at Tesco Hypermarkets?
3) If the price of other Hypermarkets such as Giant or Carrefour were to decrease, would you still shop at Tesco Hypermarkets?
If the average price of products for Tesco Hypermarkets has increased will you still shop here?
Answers for question 1)
If the average price of products for Tesco Hypermarkets has increased will you still shop here?
| |
Yes
|
No
|
1) Because although it was expensive, it is still nearby my house
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Because there is a Carrefour nearby my house
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2) Because the customer service and quality of products there are still better.
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Because it is not worth it compared to other Hypermarkets
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3) Because I do not go there often. I only go about once every two weeks
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Because it does fit into my budget scheme anymore
|
4)
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Because there is a row of shops nearby my house
|
5)
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Because I am very sensitive when it comes to the price of the products I buy
|
6)
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Because I am sure other hypermarkets sell the products that I want at a cheaper price
|
7)
|
Because the average price of product for other hypermarkets are cheaper
|
If your level of income were to increase will you shop more frequently at Tesco Hypermarkets?
Answer for question 2)
If your level of income were to
increase will you shop more frequently at Tesco Hypermarkets?
|
|
Yes
|
No
|
Because
I would be able to buy more of my favourite products
|
Because
if I have the extra income. I would save it up for something more important
|
Because
the prices are just irresistible
|
Because
I think I can save my income for the future
|
Because
I do my grocery shopping at Tesco very often
|
Because
I could save up for more important things
|
Because
I wouldn’t need to be so thrifty with my grocery shopping anymore
|
Because
I have more important things to buy if I have the extra income
|
Because
the products there are cheap and good in quality.
|
|
Because
the it is has many variety of promotions
|
|
If the price of other Hypermarkets such as Giant or Carrefour were to decrease, would you still shop at Tesco Hypermarkets?
| |
Yes
|
No
|
1) Tesco has better quality and variety of products compared to the others
|
The prices over there are cheaper.
|
2) Tesco is more nearer to my house
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I want to save as much as possible
|
3) I have shopped at Tesco for a very long time and I am familiar with the place already
|
Because there are also more promotions at Giant and Carrefour
|
4)
|
I am very cost-conscious
|
5)
|
Giant is nearer to my house
|
6)
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Because the price at Carrefour is much more cheaper
|
7)
|
Because Carrefour is nearer to my house
|
Pie chart for question 3
Business Enterprise Integrated Assignment
Business Enterprise Integrated Assignment.
Tesco
Corporate Social Responsibility (CSR)
Tesco Malaysia have been carry out many Corporate Social
Responsibility (CSR) activities every
single year. Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a
company to operate in an economic, social and environmentally sustainable
manner. A Tesco CSR initiative is a type of activities that volunteer by the
worker in Tesco Malaysia. In every year, Tesco Malaysia had adopted more than 2
programs
to help the growth of community.
In year 2010, Yayasan Chow kit was
carried out.
The aim
for this plan was helping the impoverished
and troubled children in the Chow Kit area.
An 11-seater 2.5L Turbo Toyota Hiace window van was handed over to Chairman
of Yayasan Chow Kit from the Chief Executive Officer of Tesco Malaysia. Other than that, Yayasan Chowkit which also included Pusat
Aktiviti Kanak-Kanak, Chow kit. Its an ‘ safe house’ for the children, it’s a
24-hour activity centre and provides a safe, healthy and loving environment for
the children who are below 18years old. Food, shelter, educational, health and
recreational activities are provided to the children.
Different
kind of activities was carried out in the Pusat Aktiviti Kanak-Kanak.
The
classroom in the ‘safe house’.
Website
of Yayasan Chow Kit.
On the other hand, in year 2012 Tesco mortgage to plant 500,000 trees throughout the nation in between 3 years to help to reach the country’s target of planting 26million trees. The programme is part of a greener Earth initiative by Tesco Malaysia to reduce the carbon dioxide in the world. Tesco also carry out No Plastic Bags Day on every Saturday nationwide. In year 2012, Tesco and MTIB will plant 160,000 tress, 170,000 in 2013 and 2014 respectively.
Plan of tree planting.
Opening ceremony of tree planting. The first tree
planting initiative was carried out on December 17, 2011 where 450 volunteers
from Tesco. Number of 1000 trees was plant on Taman Wawasan, Putrajaya.
Paediatric Leukemia Patients are also under
the concern of Tesco Malaysia. Tesco was working on with the Kraft Foods, with
every RM10 purchase of Kraft snacks, RM0.10 will be donated to the Paediatric
Leukaemia patients at Universiti Malaya Medical Centre (UMCC). The purpose of
this donation was help reduce of cost of medication cost.
Brands
under Kraft Foods company.
The
fund was targeted to raise more than RM20,000 and the funds will be handed over
to the patients at the hospital with the volunteers from the Tesco management.
Other than fund raising from Karft Food products, Tesco Malaysia also organized
a charity run. The five kilometer run took place on Sunday, 17 November 2013 at
University of Malaya Kuala Lumpur.
Opening
ceremony of Walk of Life
Tesco
has raised over RM500, 000 for the University of Malaya Medical Centre. It was
also help to reducing the treatment cost of the young patient.
The
condition of Tesco when switched off
unnecessary lights.
Type of business that Tesco
currently involved in :
Tesco Stores (Malaysia) owns
and operates hypermarket in Malaysia. The type of business that Tesco currently
involve in is a large selection of fresh food, produce groceries, household
items, apparels, electronics, bedding, cookware and its own food and non-food
products. Tesco stores was founded in 2001 and is based in Kuala Lumpur,
Malaysia with stores in Malacca, Klang, Puchong, Ampang and many other place. Not
only that, Tesco stores in Malaysia relaunch all its stores to Tesco Extra. The
new Tesco extra brand features a shop in shop concept with an optic shop,
pharmacy, bistro, café , phone shop, and cinema. This are the type of business
that Tesco are involved in. Moreover, Tesco Malaysia also launched the Grocery
Home Shopping Service, where it delivers groceries ordered through the Internet
to consumers. There will be a RM 10 service charge for each delivery. This is how Tesco Malaysia earn their revenue through delivery.
Tesco Lorry delivery
Social factors
Current trends indicate that customers have
moved towards ‘one-stop’ shopping,
which is due to a variety of social changes. So, Tesco have moved to the one-stop service. They provide the
food item as well as non food item such as electrical product, clothing, baby
product etc and also the finance service. This brings more convenience to the
customers. Tesco has also launch the organic product because customers are
aware of health and the demand of food is changing day by day. Besides that,
most of the customers are mixed origin so Tesco try to meet all type of
customer demand.
Technological
factors
Technology
is a major macro-environmental variable which has influenced the development of
many of the Tesco products. The new technologies benefit both customers and the
company. Tesco stores utilise the following technologies:
•Wireless devices
•Intelligent scale
•Self check -out
machine
•Radio
Frequency Identification
The company setup the self checkout point make customers more
convenient. Besides that, customer satisfaction rises because goods are
readily available, services become more personalised by delivering the product
through online shopping.
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