Executive Summary
This report will look for alternative ways in which the London
Underground can change their prices in order to reduce their loss in
terms of total revenue. The report will both identify and analyse
these alternative methods in an attempt to find the most suitable way
of increasing the revenue for the London Underground. The report will
also look at how elasticity plays a key role in determining any
decisions as well as the outcome of these decisions made.
The London Underground is at this very time running at a loss and is
in urgent need of things being turned around. The London Underground
may at one point in the future be privatised. What we need to
determine is how we can increase revenue before it floats so that
potential shareholders will be attracted. We must see how prices can
be adjusted in coincidence with the market segments so that revenue
can be increased. Elasticity is crucial in our thinking as it can
have a big impact.
1.1 DEFINITION OF ELASTICITY
Elasticity is the concept in economics that measures the
responsiveness of one variable in response to another variable. The
best measure of this responsiveness is the proportional or percent
change in the variables. This gives the most usable results for any
type or range of data. Thus elasticity is the proportional (or
percent) change in one variable relative to the proportional change in
another variable.
The general formula for elasticity is:
E = percent change in x / percent change in y
1.12 DIFFERENCE BETWEEN ELASTIC AND INELASTIC DEMAND
Elastic means something is highly responsive to changes in something
else. For example, elastic demand means that the quantity demanded
changes a lot when the price changes. Inelastic demand means that the
quantity demanded does not change much when the price changes.
2.0 WAYS IN WHICH FARES CAN BE ADJUSTED
2.01 OPTION 1
One way of adjusting prices can be to decrease the fares for students.
Students often use this service as a means of transport to get to
their respective universities. If fare prices are lower, even though
the income per ticket is less, it may overall increase sales revenue.
Other discounts may also be offered if a quarterly or seasonally train
pass was purchased, which would attract student to this service.
2.02 OPTION 2
Fare prices can be increased because many people see this service as
inelastic as they do not have any other means of transport. A lot of
business people use this service and may well be able to afford to pay
the extra cost. However this is a very risky method as it may
encourage people to use private transport which may take the business
Inelastic demand means that an increase or decrease in price will not significantly affect demand for the product. In spite of the rising prices for the Blue Jays tickets, fans were expected to turn out in large numbers. This inelastic demand for the tickets can be attributed in large part of the fact that their teams plays so well in 1998, and another factor is that the Blue Jays fan could never stay away from their team. Another inelastic demand for the Blue Jays tickets is that there is no other locally substitute team.
The key results of NAB’s performance over last 2 years are $5.3b net profit attributable to the owners of the Company 1.1% decrease from 2013. $5.18b cash earnings, 9.8% decrease from 2013. $1.98 dividend per share, 4.2% increase from 2013.11.8% cash return on equity, 2.3 percentage point decrease from 2013. $67.6m community investment, 1.7% increase from 2013.69% employee engagement , 1 percentage point increase from 2013.100,000+ microfinance loans to people on low incomes since 2005. NAB has provided project finance for around 65% of Australian utility scale renewable energy projects since 2000.
Over the past eight years, Andrews has performed fairly decent. Even though there are areas to improve on, the overall growth is outstanding. When the company first started out, our contribution margin was at 24.7% and at the end of the 8th year we are at 54.1%. When compared to rest of the industry it is almost 20% higher than the closest competitor. Every year, we have had a profit no matter what the sales were for the respective year. Currently our stock price is at $22.59/share; we started out at $16.01. Throughout the years, our stock
Implications for each of the computed elasticities for the business regarding short-term and long- term pricing strategies.
A unique experience that I had during my internship at Target was to aid in the development and strategy of workforce planning. According to a Society of Human Resource Management (SHRM) toolkit, written on December 21st, 2015, Practicing the Discipline of Workforce Planning, “workforce planning is the process an organization uses to analyze its workforce and determine the steps it must take to prepare for future staffing needs (SHRM, pg. 1).” Workforce planning was discussed in several courses I have taken at ISU, most prominently MQM 323 and MQM 221. There were three different ways in which I helped with workforce planning which was analyzing the open position report, scheduling team members, and recruiting and selecting potential team members.
In order to measure the impact of United's price increase, we would need the price elasticity of the demand. The main problem is that there is no agreement as to whether, generally speaking, air transportation is or is not relatively price elastic. There is ample evidence that the introduction of deeply discounted fares by the low cost carriers can be very price elastic, although, each type of traveler has its own price characteristics.
The article that I will be summarizing is “Half of Teens Think They’re Addicted to Their Smartphones” written by Kelly Wallace. This article is about how teens are addicted to their smartphones and how it is becoming a problem. The text is stating facts about how many teens and adults use their smartphones. Teens depend on their phone greatly which can make it hard to get off of it. This does worry people. Teens also say they check their phone hourly, so they also feel that they need to respond to texts and social networking messages immediately. Teens are not the only ones that are addicted though. Even parents have trouble getting off the phone to enjoy life. If you have this trouble and feel like you want to get on
One of the first ideas presented in the book that I felt was one of the main ideas is the idea of copying the works of the people that you admire the most. Through the creation of who you are as an artist or as a person in general, the act of copying the people you aspire to be like the most is an important concept in this book. The book stresses the idea of creativity and the idea of how in creativity there lies no originality but stealing the ideas of others. He emphasizes the benefit of stealing ideas in order to develop your own art work and in turn creating your own voice as a person. In addition to the idea of copying, creation is a large topic in the book. For example, in the chapter "Write the Book You Want to Read" he mentions making things that you like to make and create the things that you want to see created. Whether this creation be a piece of music or art, he mentions that you should imagine what your favorite artists would make if they worked together and to create that yourself.
Price Elasticity is the measure in responsiveness of consumers to changes in the price of a product or service. The evaluation and consideration of this measure is a useful tool in firms making decisions about pricing and production, and in governments making decisions about revenue and regulation. “Price Elasticity is impacted by measurable factors that allow managers to understand demand and pricing for their product or service; including the availability of substitutes, the consumer budgets for the product or service, and the time period for demand adjustments.” The proper consideration of Price Elasticity allows managers to set pricing such that the effect on Total Revenue is predictable and adjustments to production are timely. The concept of Price Elasticity is employed in the management of commercial firms and government.
A plural Executive is a system of government where a few, or all, of the administrative branch officers are chosen in their own particular right. This out comes in a considerably weaker CEO. This framework is principally found in American states, especially Texas. Texans choose six of the seven individuals who make up the plural official: the senator, the lieutenant governor, the attorney general, the land chief, the commissioner of agriculture, the officer, and the official of the General Land Office. The representative names the seventh individual, the secretary of state. Two noteworthy administrative offices, the Railroad Commission and the State Board of Education, are controlled by authorities who are likewise freely chosen. Decisions are fanatic, and every individual from the plural official may work freely of the
The “A&P” parable is somehow an indication of chauvinism and a quick look to society, in the 1960s’. Because of the rich phraseologies and syntax, this anthologized work is recognized to be an ideal introduction to new college students. Such readings, challenges students in the meanings of a political view and moral values at that current time. The idea of using a teenager as the main character, connects young readers, and consequently causes a turmoil discussion of wrong or right (Carino).
Raghavan, an editor for the Washington Post presents the thriving business of immigrant smuggling in the heart of Libya`s cities. The author uses images to portray the true picture of the dentations camps. He employs ethos and Paros to illustrate the emotional and ethical issues not accounted for. While he notes the efforts made by the E.U in eradicate the situation, the author clearly states his stand .He states that, much should be done .He also reflects on how hard and dangerous the journey through the desert is. This shades light on a journey that few are aware of thus showing how much damage the business is causing to the immigrants.
BP Executive Summary This report will present an explanation of four main costing systems; it will describe the advantages and the disadvantages of marginal costing, absorption costing, process costing and service costing. It will also reveal whether these costing systems are suited to the company BP. Marginal costing is suitable for BP to use internally to calculate the number of units needed to be sold to break even. Marginal costing is appropriate for BP because it has many variable costs such as the products sold in stations and the transportation of the petrol; these are all dependent on the level of activity. Absorption costing Comparison of marginal and absorption Process costing / Joint and by-product costing Service
Elasticity is one of the most important theories in economics and it is a measure of responsiveness (Baker, 2006)i. There are mainly two types of elasticity, the elasticity of demand which includes price elasticity of demand, income elasticity of demand, and cross elasticity of demand as well as elasticity of supply (McConnell, Brue, & Flynn, 2009)ii. The degree to which a demand or supply curve reacts to a change in price is the curve's elasticity (Lingham, 2009)iii. Elasticity varies among products because some products may be more essential to the consumer.
One method that Toyota can consider is using the price elasticity of demand to determine whether to increase or decrease the sale price of their automobiles. The responsiveness or sensitivity of consumers to a price change is measured by a product's price elasticity of demand (McConnell & Brue, 2004). Market goods can be described as elastic or inelastic goods as change in quantity demanded for that good. If demand is elastic, a decrease in price will increase total revenue. Even though a lower price would generate lower sales revenue per unit, more than enough additional units would be sold to offset lower price (McConnell & Brue, 2004). In a normal market condition, a price increase leads to a decreased demand, and a price decrease leads to increased demand. However, a change in income affecting demand is more complex.