Microeconomics

• Thomas Cook shutdown

  • Collapse led to 600K travellers stranded overseas
  • Approximately 21000 worldwide workers left without job
  • Around 11% of businesses die each year from 2021 and 12% born
• Thomas cook executives' salaries and bonuses have been questioned. Directors receiving salaries of over £20 mil in 5 years before collapse
• CEO earned cash bonus of £500K in 2017
• Business Growth

  Constraints on business growth
• Business Growth

  • BT group finalised EE takeover in 2016
  • Bt now owns 35% of mobile customer market
  • Morrisons plunged to a £1 billion loss last year
  • Amazon Profits nearly tripled as company reported $14bn in rev in Q4 of 2023
  • Under Armour $2bn turnover each year and 20% consistent growth
  • Kraft bought Cadbury 2010 for £11.9Bn
  • The company Intel supplies Dell with intermediate goods—its processors—that are placed within Dell's hardware
  • Tata Steel inks pact with Ford to supply green steel from the Netherlands
  • Amazon buys activision blizzard for deal of $69mil
• Demergers

  • Tata Motors demerger: Shares surge more than 7% in intra-day trade; demerger decision reflects the company's confidence; Tata can now directly compete with Maruti in the passenger vehicles space
  • Reliance industries(Conglomerate) demerges financial lending arms now to be called JIO financial services
  • Shares of Reliance have surged 8% since the company announced the record date for the demerger on July 8
  • India's largest cig maker ITC announced demerger of hotel business
  • Alibaba split up into 6 different legal entities to increase capitalization and have increased competency in 6 firms
• Gone are the days of executive discussions simply about branding and PPC. These leaders now engage the C-suite with plans for driving revenue, optimising investments and ensuring sustainable growth over multiple time horizons.
• Due to budget retailers such as Aldi and Lidl


  Sainsbury changed their prices to compete
• Apple

  • Maximises revenue through product development, strong brand loyalty etc
  • Claimed a 24.7 percent share of the market in the fourth quarter of 2023, an increase from the previous quarter
• Blockbuster failed to adapt to streaming services like Netflix because firm always wanted to max price leading to decrease in sales
• Microsoft and google

  Focused on profit by expanding operations, investing in new tech etc
• Amazon, Facebook and Ocado

  Struggled with operating losses in their early years, as they focused on building up market size and market share, i.e. sales
• In 2014 there was a 5-month strike by platinum miners in South Africa, due to gross income inequalities between workers and managers. The mining companies had to dig in to survive after $2.25 billion of revenue losses.
• Revenue

  • Amazon revenue around $120 in Q1 of 2023
  • The private sector employs around 27 million people and had a combined turnover of over 4.48 trillion British pounds
  • Shell had, by some distance, the highest revenue at 261.76 billion US dollars
  • Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, continuing a decades long trend in top-line growth, saw its revenue jump 4.5% to a new firm
  • Yorkshire-based life sciences firm sees 'encouraging progress' despite revenue dip
  • Multiple firms in oil gas sector,such as Vilto with 2bd highest rev in market as of Aug 2023, have higher bands of revenue

  
• Costs

  • The National Living Wage will rise by 10%, moving from £10.42 to £11.44 per hour. This will be the largest annual increase so far and it will come on top of a significant increase in 2023.
  • Average monthly UK rent up 9% – the highest annual increase recorded
  • UK rent around £1300
  • average annual salary of employees in non-private enterprises and organisations in urban China in 2022, by region. In 2022, an employee in the urban regions of the Chinese Jiangsu province earned around 121,700 yuan per annum on average.
• Small shops face £1.7bn debt mountain
• He(FSB's chairman Martin McTague) said repayment levels for loans were "strong", and that defaults were "lower than previously estimated". But, Mr McTague warned that, "many small firms are being held back from growth and investment due to their higher debt levels."
• Oil rises more than $1 a barrel on tighter supply outlook
• (Dis)economies of scale

  • British American Tobacco agreed takeover with Reynolds in 2017.One of the reasons cited for the deal was increased benefit from EOS
  • Sentiment within the manufacturing sector stagnated in the three months to January, as output volumes fell unexpectedly, according to the CBI's latest quarterly Industrial Trends Survey. Output is expected to rise slightly in the three months ahead, but the share of firms citing weak orders or sales as a constraint on production rose to its highest in three years, with total new orders falling at their fastest pace since July 2020.Growth in average costs accelerated in the quarter to January, putting pressure on margins.
  • Scale Economies use Mass Transit to lower the congestion problems when travelling
  • CC allowed the railroad industry to operate as a cartel and did nothing to enhance competition and control prices.
• The Amazon Industrial Innovation Fund is a $1 billion venture investment program that supports emerging technology companies with direct investments. The Fund aims to help spur and support warehouse automation and supply chain innovation and, since launching in 2022