Business environment case study - Business Advice for Hugo's Hats

Assumptions: Hugo's Hats produces fashion hats for both male and female customers, price per hat £100. Trades as a Private Limited Company and started trading as an e-business in 1995. Market Structure is the degree of competition the business faces. There are four market structures as illustrated in figure 1. Figure 1 Perfect competition is a theoretical model, it does not exist. It is assumed that there are many buyers and sellers, the goods being sold …

…going to cost Hugo to invest in the cost of advertising and diversifying, however, in the long run, the investment will pay off. Bibliography: Sloman, J. and Sutcliffe M. (2004) Economics for Business, 3rd Edition Harlow: Pearson Education Limited. Office of National Statistics: E-commerce survey of business, 2003 (Online) <http://www.statistics.gov.uk/economy (Accessed on 18/2/2005) BBC News: The US Economy (Online) <http://news.bbc.co.uk/2/hi/business/4230607/stm (Accessed on 18/2/2005)