Economic Oil Case Analysis Report | Plummeting Oil Prices

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BECO001 Economics for Business

Semester 3, 2015

Assessment 3: Final case study report

Due date:Friday 4th December (Week 12)

Weight: 30%

Subject Learning Outcomes to be assessed:

  1. Describe and evaluate basic principles and concepts of economic theory as outlined in academic literature and their practical application to the business environment
  2. Analyse decision making processes and solve business problems relating to costs, output, prices and profit
  3. Analyse competition, business behaviour and the effects of changes in market conditions on industries and firms
  4. Demonstrate an understanding of markets and their limitations in allocating resources
  5. Demonstrate an understanding of the main mechanisms by which governments manage and/or intervene in the macro economy and how these impact on business
  1. Communicate economic and business information both orally and in writing through presentations and informal reports

Grading Criteria: 

Assessment Criterion %
 Identify Issues & Stakeholders 15%
 Analysis & Discussion of Relevant Economic Theory 45%
 Recommendation & Alternate Actions 20%
 Overall Structure of Report & Clarity of Writing 10%
 In- class reflection on learning 10%

 How do I structure my assessment?

You should structure your report in the style of a business report, which includes the following elements:

  • Table of contents
  • Executive summary
  • Introduction (this can be your description of the main issue)
  • Body (stakeholders and economic concepts)
  • Conclusion
  • Recommendations of alternate actions
  • References

When do I use diagrams?

Use economic diagrams that you have learned in this subject, if they are relevant to the concept you are discussing. Your diagram should be explained in your written answer. Diagrams should be clearly labeled.

Where do I find sources?

The readings for each case study can be found on UTS Online.

What should my Turnitin originality score be?

Aim to keep your originality under 25%. Scores higher than this may receive a penalty or be investigated for academic misconduct.

What are reflection questions?

You will be given 3 short questions to answer in your week 12 tutorial. The questions will ask you to describe and reflect on your learning experience while doing this assessment. For example, you might be asked about a challenge you faced while doing this task, and how you addressed that challenge. You will do a practice reflection in your week 11 tutorial.

 

 

Description

The world economy is driven by crude oil. The performance of the world economy is closely tied to rise and fall in world price and historical data shows that.   A slowdown in economic growth also aligns with fall in demand for oil and vice versa, a fact that shows close relationship with the world economy.The global oil prices rises and falls in cycles, which all align with changing economic performance and forces of demand and supply. In the recent past, the global oil prices have taken more than 60% dip because of the increase in the supply side and a slowdown in the global economy.   This means there is an imbalance between supply and demand. The way forward to balance the falling oil prices has also remained controversial as the actors, who are mainly the producers, fails to agree on the reducing production. The falling oil prices have an effect on the interest rate and consumer purchase power.  Normally, reduced oil prices will cause a fall in the interest rate and increased in consumer purchase power. This trend is yet to be observed. This study will therefore analyze the phenomenon fall in oil prices and the effect it has on the stakeholders.