Unit 16: Inclusive Practice Assignment Sample

• Type Assignment
• Downloads585
• Pages13
• Words3238

Introduction

This assignment sample demonstrates high-quality academic writing with proper structure, research, and formatting. It effectively addresses essential topics such as pricing strategies, performance challenges, and the impact of global events on the fuel market. If you’re working on Market Analysis 7MK521 or any similar module, maintaining this standard is crucial for securing top marks. Rapid Assignment Help UK provides fast, reliable, and fully customized assignment solutions tailored to your subject, helping you meet deadlines and improve grades effortlessly.

Market analysis is defined as a concept which includes a detailed evaluation of the target market of the company and the competitive working within the industry. For successful working it is very necessary that appropriate market evaluation is conducted so that the changes can be made and accordingly profits can be generated. The current study will outline the market description of the UK Road Transport fuel market. In addition to this, the analysis of price and quantity trends over time will be discussed. Moreover, the factors affecting the demand and supply of road transport fuel will also be evaluated in the current study. Further calculations relating to the price elasticity of demand will be outlined. Along with this discussion relating to performance issues within the production and retailing of road transport fuel will be examined. In the end, the summary relating to the major issues found within the fuel pricing strategy will be analysed and evaluated.

Section 1:Analysis of the UK Road Transport Fuel Market Trends

An overview of the UK Road Transport Fuel Market, highlighting product types, key suppliers, market trends, rising prices, and the growing shift towards electric vehicles impacting fuel demand and supply.

Market description

For the successful working of the company, an effective market analysis must be undertaken. The reason underlying the fact is that with the help of effective market research, the company can evaluate the latest trends and changes taking place. Thus, it will help the company in making effective decisions within the working and it will help in improving the efficiency of the company. There are different kinds of products which are used within the UK Road Transport fuel market including use of petrol, diesel, LPG, CNG and many other different kinds of Petroleum and biofuels products. All these different types of products are helpful to the road transportation. In addition to this, there are different producers and suppliers relating to the road transportation fuel service (Giudici, Milne and Vinogradov, 2020). These include different companies like BP plc, Vedanta Resources, EnQuest PLC, Centrica PLC and many other different kinds of companies dealing in similar products. There are different kinds of companies dealing in the oil and natural gas business and it helps the business and provides better fuel services to the companies. A market that must effectively comply with the producers and suppliers so that the balance between both of them can be met easily and there is enough supply can be used optimally. In addition to this, in the current environment-friendly working people are more focused on electric vehicles. Hence, the use of electric vehicles might result in a reduction in the demand for fuels.

Further, the current size of the market includes the increasing prices. This is particularly because of the reason that as transportation is increasing the prices of gasoline, E85 and CNG are also going up. This is particularly because of the reason that the use of this fuel is increasing and as a result of this the prices of also increasing. Thus, it increases the demand for petrol and diesel and ultimately as a result of this, the prices also go up. Hence, it is very necessary for companies to effectively analyse the regulatory environment of the UK. This is necessary because when the effect of the environment is evaluated then the necessary changes can be implemented and as a result of this the overall work will be improved.

Section 2: UK Fuel Market Price and Consumption Trend Analysis

The analysis of price and quantity trends in the UK fuel market reveals increasing fuel prices and consumption over time. Despite price hikes, demand continues to rise due to vehicle usage, with diesel and petrol consumption remaining steady and predictable from 2007 to 2021.

Analysis of price quantity trend

For the successful working of any market, the price and quantity Trends must be studied over time. This is particularly because of the day it will help the company predict the future working effectively (Ngwakwe, 2020). The reason underlying the fact is that when the proper evaluation of the past data will be implemented then automatically it will result in effective future decisions. With the evaluation of the UK fuel market, it is evident that in the past years, the prices of fuel have increasing. Even though the prices are increasing the demand is also increasing. This is particularly because of the reason there is a trend of using the vehicles and as a result of this, the fuel consumption also increases. It is very essential for petroleum companies the effectively study past data so that they can predict future sales.

Unit 16: Inclusive Practice Assignment Sample

Liked This Sample? Hire Me Now

Vicky Scott 6 Years | PhD

With the evaluation of the charts prepared relating to the usage of road transport energy consumption for the year 2007-2021 the consumption of the fuel has increased. The reason underlying the fact is that with the passage of time the use of fuel has increased to a great extent. With the evaluation of the data it is clearly evident that consumption of the fuel is necessary. The different types of the fuel included is diesel and petrol and with the chary it is evident that England is the place where the consumption of petrol and diesel is the maximum. It is also evident that over the years the consumption is very stable and it is not much fluctuating.

Section 3: Key Factors Impacting Demand and Supply of Road Fuels

Several factors, beyond price, influence the demand for road transport fuels. These include the COVID-19 pandemic, the Russia-Ukraine war, changes in fuel efficiency, household income, and tax rates. The interplay of these factors leads to fluctuating fuel demand, affecting pricing and supply dynamics.

Factors affecting the demand-supply of road transport fuels

There are many different types of factors other than price which impact the demand of any product. These different factors impact the demand for the product to a great extent. Other than price there are many different kinds of factors which are essential to be followed so that proper evaluation can be undertaken. These different factors include the following-

COVID-19- The first and foremost factor is the covid-19 that is pandemic which hit the economy. This is the major factor which has impacted the price and the demand of the fuel market (Baek, Mohanty and Glambosky, 2020). This is particularly because of the reason that due to the economic shutdown, people were going to their native places. Thus, as a result of this, the overall demand for fuel increased. Also, public transport usage increased and as a result of this overall demand within the fuel market increased to a great extent.

With the evaluation of the diagram, it is evident that due to the covid-19, the demand for fuel increased and as a result of this the prices were also high. The reason underlying the fact is that when the demand is high then automatically the prices of the product also increase because the supply is less. Thus, with the diagram, it is evident that due to COVID-19 the demand for fuel increased from D1 to D2 but the supply was the same.

Russia- Ukraine war In addition to this another major factor which impacts the demand of the fuel market includes the current Russia and Ukraine war (Brigljevi?, Byun and Lim, 2020). Due to the war, many people have reduced travelling to other places and as a result of this, the demand for fuel has reduced in addition to this the prices in also been impacted and as a result of this it affects the demand as well.

By the evaluation of the demand - supply diagram, it is evident that due to Russia and Ukraine, the demand for fuel was reduced but the supply was increased. Thus, due to this increasing supply and reduction in demand, the equilibrium was not met.

Changes in fuel efficiency - In addition to this, the changes within the fuel efficiency also impact the demand and price of the product. This is particularly because of the reason that when the efficiency of the product is reduced then automatically the demand of the product is also reduced. Thus, changes in the efficiency level of fuel also impact the demand for the product. In case the efficiency is reduced then people will not be using the fuel and as a result, the demand will reduce.

Household income - In addition to this another factor impacting the demand for road transport fuel is household income. In case the household income of the person is reduced then they will not be travelling to other places and as a result of this, the demand for fuel will reduce. Thus, the person must manage their household income so that fuel demand is not impacted at all.

Tax - Along with this another factor affecting the demand for road transport fuel is the tax rate. In case the tax rate is higher the demand for the fuel will reduce. On the other hand when the text rate is low then people will be using more fuel as they will have to pay fewer taxes.

Hence, it can be stated that other than price also there are many different kinds of factors which affect the demand for road transport fuel to a great extent (Tanklevska and et.al, 2020). Thus, the person must evaluate all the different factors and then decide on the appropriate prices so that it is accessible to every person.

With the help of the above diagram, it is evident that when the tax rate is reduced then automatically there is an increase in the quantity demanded. This is particularly because of the reason that earlier the person was buying the product in 500 quantities but as the tax rate was reduced the number of quantities increased. Ultimately implies that the demand is impacted by factors other than prices as well.

Section 4: Understanding Price Elasticity in Fuel Demand

Price elasticity of demand measures how demand changes with price adjustments. In the UK road transport fuel market, a 60% price increase reduces demand by 30%, indicating inelastic demand. Understanding elasticity helps companies set prices effectively, predict consumer behavior, and optimize sales strategies.

Calculation of price elasticity of demand

The price elasticity of demand is defined as of measure which outlines the change within the demand of the product to change in the price. It simply means that it is an analysis which outlines a percentage change within the quantity demanded due to a change in the price of the product. With regards to the UK Road Transport fuel, the effective price elasticity must be calculated so that the appropriate decisions can be taken relating to the demand and the setting up of the price of the product.

For example, the price of fuel increased by 60 % that is earlier it was $5 and now it is $8 and consequently the demand reduced from 100 to 70 units. Then the elasticity of the fuel will be 30/ 60 which is 0.5. This simply means the elasticity of the demand is inelastic and this is good for the working of fuel. The reason underlying the fact is that when the price change is reflected within the quantity demanded then it implies that the goods and their demand are quite inelastic (Kutsyk and et.al, 2020). Thus, it is beneficial for the effective working of the company because whatever be price of the fuel consumers will use it. Thus it will be beneficial for the company because the sales of fuel will increase even when the prices are high.

The implication of the price elasticity over the demand for the product is that it will help the company in setting the prices effectively. This simply means that in case the product is elastic then it implies the atomic change within the price will have a greater impact on the demand for the product. Thus, it will help the company to effectively set the prices so that they can attract the majority of the customers (Floro, 2019). In addition to this another implication of the price elasticity of demand is that it helps in influencing the behaviour of the consumer and the business as well. This is about the fact that price elasticity assists the company in analysing the behaviour of the consumer and tries to influence it. Thus, it also assists in providing information relating to the changes in the buying behaviour of the consumer at different levels of prices. It helps the company in finalizing the appropriate price by analysing the behaviour of the consumer at different price levels of the product.

Section 5 :Performance Challenges in Road Fuel Production and Retail

Performance issues in the UK road transport fuel industry stem from difficulties in measuring company performance and competition. The 5-firm concentration ratio is 55%, showing growth, but competition, especially with supermarkets selling fuel, drives the need for improved efficiency and regulatory oversight to enhance industry performance.

Performance issues in production or retailing of road transport fuels

Within the road transport fuel industry, there are many different performance-related issues within the production and retailing of the fuel. This is particularly because of the reason that this industry is very wide and evaluating the performance of the companies is difficult. Thus, as a result of this, measurement of the performance of the company is difficult and the competitive position cannot be analysed. In addition to this, the UK 5 concentration ratio for the petrol industry is 55%. This simply means that the average performance of the top 5 largest companies within the industry is 55%. This simply means that the UK retail petrol industry is working well and it can be stated that there is growth within the selling of petrol and other fuels. Along with this, the three-firm concentration ratio is 40%. This simply means that is very necessary for the petroleum companies to effectively improve the working efficiency so that this ratio can be improved well.

This increase in the concentration ratio is because the supermarkets are also selling petrol and this has made the market more competitive. This is particularly because of the reason that supermarkets are selling petrol at competitive prices and as a result of this the competition is increasing for improving performance petrol stations must increase sales (Cahill, 2020). This concentration ratio is necessary to be calculated because it assists in analysing the degree of competition being present within the industry. Along with this it also indicates the monopolistic power which the companies possess while working within the industry. Furthermore, another reason for analysing the concentration ratios is the regulatory oversight (Su and Liu, 2021). This is necessary because the 5-firm concentration ratio helps in evaluating and regulating the performance of the top 5 companies. When the performance of the top 5 companies is effective then automatically it will regulate the whole industry and will assist in improving the position of the company.

Section 6: Key Issues Impacting Fuel Pricing Strategies in the UK

The UK road transport fuel industry faces several challenges in pricing strategies, including the impact of COVID-19, fuel shortages, and rising prices. These issues complicate setting effective prices, influencing sales and long-term market performance, as high prices may reduce consumer demand.

Summary of main issues

In the end, it is concluded that effectively setting up the prices is very necessary for any industry to work. It is particularly necessary because many different issues are being found that can affect the pricing strategy of the company in the future. In the current case of the UK Road Transport fuel industry, the pricing strategies are impacted by many different kinds of issues. The most common issue which will be faced by the companies in setting the prices of the fuel is the effect of COVID-19. The reason underlying the fact is that it has created many different issues over the working of the company (Spreen and et.al, 2020). Thus, as a result of this, it will create issues in setting up the prices effectively. Moreover, the fuel shortage crisis within the year 2021 will also impact the overall pricing strategy of the companies. This is particularly because of the reason that when there is be shortage of fuel then automatically prices of fuel will increase. Ultimately the sales of the fuel will reduce because at high prices the consumer will not buy it. Only in case of emergencies the consumer will use the fuel and it will impact the long-run effects. Thus, all these issues and factors will impact the working and the setting up of the fuel prices in the industry.

Conclusion

In the end, it is concluded that market analysis is very essential to be conducted. It is particularly because of this reason that with the help of the market analysis, the working of the company will be improved as they can evaluate the current trends and try to implement them within the working. The above study concluded that the market description is very necessary because it includes the evaluation of the size of the market types of the producer and supplier types of products and many other different details. It also evaluated that for the company to be successful it is necessary to evaluate the price and quantity try and so that effective decisions can be taken. Moreover, the study highlighted that there are different factors affecting the demand other than price which include environmental changes household income and many other different factors. It also evaluated atom price elasticity needs to be managed as it helps in setting up the pricing strategy effectively. In the end, it was evaluated that the concentration ratio needs to be evaluated so that the competitive position can be outlined within the industry.

References

Books and Journals

• Baek, S., Mohanty, S.K. and Glambosky, M., 2020. COVID-19 and stock market volatility: An industry-level analysis.Finance research letters,37, p.101748.
• Brigljevi?, B., Byun, M. and Lim, H., 2020. Design, economic evaluation, and market uncertainty analysis of LOHC-based, CO2-free, hydrogen delivery systems.Applied Energy,274, p.115314.
• Cahill, D., 2020. Market analysis beyond market fetishism.Environment and Planning A: Economy and Space,52(1), pp.27-45.
• Floro, S.L., 2019.Informal credit markets and the new institutional economics: The case of Philippine agriculture. Routledge.
• Giudici, G., Milne, A. and Vinogradov, D., 2020. Cryptocurrencies: market analysis and perspectives.Journal of Industrial and Business Economics,47, pp.1-18.
• Kutsyk, P., Lupak, R., Kutsyk, V. and Protsykevych, A., 2020. State policy of the investment processes development on the market of IT services: analytical and strategic aspects of implementation in Ukraine.Economic Annals-XXI,182.
• Ngwakwe, C.C., 2020. Effect of COVID-19 pandemic on global stock market values: a differential analysis.Acta Universitatis Danubius. Œconomica,16(2), pp.255-269.
• Spreen, T.H., Gao, Z., Fernandes Jr, W. and Zansler, M.L., 2020. Global economics and marketing of citrus products. InThe genus citrus(pp. 471-493). Woodhead Publishing.
• Su, X. and Liu, Z., 2021. Sector volatility spillover and economic policy uncertainty: Evidence from China’s stock market.Mathematics,9(12), p.1411.
• Tanklevska, N., Petrenko, V., Karnaushenko, A. and Melnykova, K., 2020. World corn market: analysis, trends and prospects of its deep processing.Agricultural and Resource Economics: International Scientific E-Journal,6(1868-2020-1688), pp.96-111.

Online

• Road Fuel Review. 2022. Online. Available through: < https://www.gov.uk/government/publications/road-fuel-review/road-fuel-review >