An Investigation into the factors affecting the supply of Clarkes shoes among the Stores within the Linstead Town

Name: Abigail TaffeSchool: Charlemont High SchoolSubject: EconomicsCentre#: Territory: Jamaica Date: January 25, 2013Candidate#:

IntroductionThis S.B.A will explain the most important things about the supply of Clarke shoes by using charts. This project will state vividly the factors that have been affecting the supply of Clarke shoes within the Linstead Town along with explanation. Last but not least, it will provide recommendation as well as suggestion on how the Stores can increase in sales. Also it will provide you with information that was found during the research.

I. AcknowledgementI would like to thank several people who have helped me in making this School Bass Assessment a success. Firstly I would like to thank God for providing me with the strength as well as the knowledge that was needed to complete this S.B.A. Secondly I would like to show my gratitude to all the respondents for taking time out to complete the questionnaires that was given. Also I would like to show gratitude to my parents who supported my financially wise. Finally I would like to thank my teacher Mr. Eric Dunn for providing me with the necessary resources and guidance in completing this S.B.A.

II. Purpose of Investigation

The purposes of the study are: To vividly state the the quantity of clarkes shoes that suppliers are willing to supply over a given period of time

To identify the substitute brands of Clarkes and compare the price and the quantity that suppliers are willing to.

To determine how inflation can affect the supply of Clarks shoes.

To examine the effects that the entrance of a new brand would have on Clarkes shoes.

To give suggestions on how shoe stores can excel tremendously in supplying Clarkes shoes.

3. Statement of Problem

An Investigation into the factors affecting the supply of Clarkes shoes among the Stores and Wholesales within the Linstead Town

1. Limitations faced

The following are limitations that were faced:

Some respondents were dishonest and so give absurd answers.

Some respondents did not understand some of the questions that were given, and so they did not respond but instead leave the space blank.

There was no set deadline on when the questionnaires were to be handed in and so there was a delay in there return.

Most website was not clear on the information that was given so it was time consuming, and I had to try a lot more website.

5. Research question

1. How much Clarks do the business supply per three months?

2. Can you put in place actions that will improve the supply of Clarkes?

3. How many times have you tried to improve the sales of Clarkes?

4. Is the supply of Clarkes increasing or decreasing in your business?

5. How do you benefit from the entrance of the new style of Clarkes?

2. Interview questions

1. What do you understand by the term supply?

2. How much Clarkes do the business supply per three months?

3. How does inflation affect the supply of Clarkes in your business?

4. Do you supply the substitute brands of Clarkes?

5. How does the supply of the substitute brands affect the supply of Clarkes?

22.

Jericho District,Linstead P.O.,St. Catherine,December 16, 2013,The manager,Linstead P.O.St. Catherine.Dear Sir/ Madam, I am a fifth former currently attending the Charlemont High School. I received your business name from an advertisement within the Linstead Town and I would appreciate it if you could meet with me. This Store has been recognized as one of the best business within the Linstead town to supply both male and female clothes. I am doing a research on the supply of Clarkes for my Economics School Based Assessment and so I would like to interview you in person to get a better concept of the supply of Clarkes, I hope that you can take the time out and meet with me. I have at least five questions to ask you I promise that I wont take up much of your time. I appreciate your consideration of my request. You may contact me using my information below. Thank you so much and I am looking forward in meeting you.Yours truly,Abigail TaffePhone: (876)-535-7180Email:pinkysweethart41@yahoo.com23.

MethodologyThe data was collected by using the following sources:Questionnaires were used to collect information on the regular supply of Clarkesfrom the employees, supervisors and the sole trader managers of both the Sinclear and Bashco stores. Questionnaires were used as it can be completed at a time convenient to the managers and the employees, questionnaires are also very confidential.

The Economics Textbook was used to verify the relevant theory on economics and supply, also to get a better understanding on supply.

An Interview was held with the managers of both the Bashco and Sinclear stores that are popular known for selling Clarkes. This was so as to get information on the supply of Clarkes within their business.

The Internet was used to provide basic information on supply as well as the shoe Clarks.The following website was visited: http://www.clarks.co.uk/helpandinfo/storesinstoreservices

http://en.wikipedia.org/wiki/Supply4. Table of ContentTitle PageAcknowledgement................................................................................................... I

Introduction............................................................................................................. II

Statement of Problem............................................................................................. 1

Research Question...................................................................................................2

Purpose of Investigation........................................................................................ 3

Methodology.......................................................................................................... 4

Limitations faced................................................................................................... 5

Presentation of data.......................................................................................... 6-11

Interpretation and Analysis of Data................................................................ 12-14

Findings............................................................................................................... 15

Recommendation................................................................................................ 16

Appendix........................................................................................................ 17-20

Glossary............................................................................................................. 21

Interview Question.......................................................................................... 22

Interview Letter.............................................................................................. 23

Bibliography....................................................................................................... 24

6. Figure1.Pie Chart showing the quantity of Clarks and the period it is being supplied

Quantity of Clarks supplied 70456090

The periodClarks is being suppliedJanuary to MarchApril toJuneJuly to SeptemberOctober to November

Both stores [sinclear and bashco] agreed that a maximum total of 70 Clarks is being supplied for the first three month. However the largest amount of sale is being done on the last three month of the year which amounted to 90 Clarks. Also has for the month of April through to June and July to September, wasthe period that the average amount of sales was done which amounted to 45 and 60 Clarks.7.

Figure2.Column showing the entrance of a new style of Clarks

The shoes stores stated that theysupplied from 45 to55 shoes in the month of April to June and 60 to 65 shoes in the month of July to September. This is due to the entrance of a new style of Clarks which increased the demand of customers as well as the supply of the Clarks.

MonthsQuantity of clarks

April - June45-55 clarks shoes

July to-September60-65 clarks shoes

8. Figure3.Bar chart showing the substitute brands of Clarks

As the price of one brand rises; consumers are expected to substitute other brands being that they are imperfect substitutes.This means that the quantity of Clarks will also change being that the price of most substitute goods are at a higher level. However most consumers preferred Clarks although the price is higher than the other brandsSubstitute BrandsPrice of shoesQuantity supplied

Nike Air$3000.0035

Timberland$4500.0040

Adidas$2500.0030

Clarks $3500.0050

9. Figure4.Line chart showing the effect of inflation on the supply of Clarkes

The continuously increased of the price of Clarks, causes the demand of Clarks to disinflation. This influenced suppliers to supply larger quantity of Clarks than usual as inflation causes the supply of Clarks to increase rapidly.They improved from supplying 60% of Clarks to 85% due to inflation.

Effect of Inflation Percentage change in the supply of clarks

Before 60%

After85%

10. Figure5.Bar chart showing the suggestions of employees on how to increase the supply of Clarks

Suggestion of employeesNo. of respondents

1. The stores could use sales promotion.15

2. The stores can use more advertisement.5

3. The stores can increase its capacity towards a change in price.20

4. No response.10

11. Interpretation and Analysis of Data

Figure1A total of 50 questionnaires were given out to the mangers and employees of both Bashco and Sinclear stores. Both stores (Sinclear and Bashco) agreed that a maximum total of 70 Clarkes is being supplied for the first three month as it was the entrance of the brand Clarkes. However the largest amount of sale was done on the last three month of the year which amounted to 90 Clarkes, this was so because it was the end of the year and also it was holiday. The managers stated that customers preferred to purchase Clarkes as it was comfortable and lasted for a relative long time. As for the month of April through to June and July to September, was the period that the average amount of sales was done which amounted to 45 and 60 Clarkes.

Figure2The entrance of the new style allows the shoe stores to increase in sales as well as the supply of Clarkes. The shoes stores stated that they supplied from 45 to55 Clarkes in the month of April to June and 60 to 65 Clarkes in the month of July to September. Also there was an increased in the demand of Clarks.

12.

Figure3The substitute brands of Clarkes are at a lower price rate than the price of Clarkes itself. This however pushed the quantity that the suppliers are willing to supply at an even higher rate than usual, as consumers still demand a high quantity of Clarkes. Adidas and Clarkes are imperfect substitutes, but although the price of Adidas is $2500.00 which is at a lower rate than Clarkes which is $3500.00. Consumers still prefer Clarkes as it has a wide variety of features that Adidas do not have one of which is that it have cheese bottom. Also Clarkes can withstand hardwearing and it even has better quality than Adidas. This also increased sales. Figure4

The continuously increase of the price of Clarkes, causes the supply of Clarkes to also increase. This influenced suppliers to supply larger quantity of Clarkes than usual as inflation causes the supply of Clarkes to increase rapidly. They improved from supplying 55% of Clarkes to 80% due to inflation. This satisfies the law of supply, and this help the stores to excel tremendously.

Price$5500.00$4000.00$3500.00$2000.00$1500.00 $ 500.00

The stores induce there price from $3500.00 to $4000.00 and increases their quantity from 55 Clarkes to 85 Clarkes.

S------------------------------------------------------------------------------

S-----------------

13. 0 50 55 60 70 75 85 90 Quantity

Figure5.

Employees suggested that the best way to improve the supply of Clarkes is by increasing its capacity towards a change in the price. A manager who has unused capacity can quickly respond to price changes in his market assuming that variable factors are readily available, this means that as long as inputs are available a manager should be able to increase its supply of clarkes if there is an increase in the price. A total of 20 respondents agreed on this suggestion. However a total of 15 respondents agreed that the stores could use sales promotion, 10 had no response and 5 others agreed that the stores can use more advertisement.

14. Findings

The survey has revealed a number of things some of which are:

The increase of the price of Clarkes, allows the stores of Linstead Town to supply a lot more Clarkes due to the consumers demand of the shoes.

Most substitute brands of Clarkes was at a lower price rate than Clarkes itself, this led suppliers to supply more Clarkes than the substitute brands. The stores were getting much more sales on Clarkes than that of the substitute brands.

The entrance of the new style allows the shoe stores to increase in the sales of Clarks.

Inflation causes suppliers to supply a larger quantity of Clarkes, as the price of the shoes was continuously rising.

15.

RecommendationsThe following are suggestions on how the stores within Linstead Town can improve in supplying Clarkes:

The shoes stores should try and decrease the resource prices as to increase in supply, meaning they should try and decreased in the prices paid to use the factors of production.

The shoes stores should try at their best ability to increase in the price of their substitute brands and decrease in the price of their complimentary goods.

They should increase the use of technology in advertising the Clarkes shoes, as other shoes stores are supplying Clarkes.

Change the price of the Clarkes regularly towards the consumers demand as to avoid surplus of Clarkes and shortage of Clarkes.

Last but not least I suggest that both stores continue in doing what they are doing where the supply of Clarkes is concern as they have been improving and may reach at an even higher profit than where they are now if they continue in that path way.

16.

Questionnaire

1. How old are you?

25-33 34-39 40-47 48-50 over

2. What do you understand by the term supply?

3. Do you supply Clarkes? Yes No

4. If yes. How much Clarks do you supply per three months?

20-25 Clarkes

26-30 Clarkes

31-38 Clarkes

Above

4. How does inflation affect the supply of Clarkes?

18.

5. What do you understand by the term substitute?

6. Do you supply the substitute brandof Clarkes Yes No

7. If yes. How much substitute brand do you supply?

1 -2 Substitute brands

3-4 Substitute brands

5-6 Substitute brands

Above

8. What is your business name?

9. Is the supply of Clarkes increasing or decreasing in your business?

IncreasingDecreasing

19.

10. How do you benefit from the entrance of the new style of Clarkes?

Increase in supplyDecrease in supply Rise in priceFall in priceAny other please specify11. Can you put in place actions that will improve the supply of Clarkes? Yes No

12. If yes, how?

13. How many times have you tried to improve the sales of Clarkes?

Regularly Rarely Never

20. GlossarySupply- this can be defined as the quantity of a commodity that is offered for sale at a price over a period of time.

Complimentary good- a compliment is a good which is bought and used with another good.

Deflation- This is the persistent tendency for general level of price to fall over a period of time.

Demand- the quantity of something that buyers are willing and able to buy over a period of time.

Factors of production- This may refer specifically to the primary factors, which arestocksincluding land,labor(the ability to work), andcapital goodsapplied to production.

Substitute goods- are goods which, as a result of changed conditions, may replace each other in use (or consumption).

Inflation-is a rise in the generallevel of pricesof goods and services in an economy over a period of time.

Surplus- is when there is an excess supply of a product.21. Bibliography http://www.investopedia.com/university/economics/economics

Oxford Dictionary

Robert, G. Tarry C. Dave R. Karen, Greenwood Cook, Ramsingh Radcliffe Harvey Economics for CSEC, Cambridge University, 2007.

http://en.wikipedia.org/wiki/Supply_

24.