Explain how market structures determine the pricing and output decisions of businesses

3.1 Explain how market structures determine the pricing and output decisions of businesses
3.2 Illustrate the way in which market forces shape organizational responses using a range of examples.
3.3 Judge how the business and cultural environments shape the behaviour of a selected organization
3.4 Select and apply appropriate methods to different market types
3.5 Use critical reflection to evaluate own work and justify valid conclusions

Guidelines to achieve:
• 3.1: Describe different market structures (perfect competition, monopoly, monopolistic competition, etc.) and describe how they affect pricing, distribution, product and service offering (good example is where there is a substantial competition, many suppliers and range of products and services for customers to choose from, another example is where there are few providers, little competition but high demand)
• 3.2: Discuss the market forces like, demand and supply, pricing decisions, customer expectations, market conditions, competition etc. and explain how the organizations need to respond to or react to those market factors ( for examples: supermarkets offering many more old brands, or low cost products )
• 3.3: Select any national or international business organization and describe how it changes its behavior with changes in the external environment for example in conditions of recession, demographic change, etc. you can also consider if the organization changes over and see how it would respond to cultural differences
• 3.4: Analyse the market structures prevailing in the UAE in the Aviation Industry.
• 3.5: Realistic improvements should be proposed for effective government policies and allocation of resources against defined characteristics for the success of the UAE economy based on the analysis done in the Merit work.

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