Effect Of The Sugar Tax On Consumer 's Demand

1741 Words Mar 9th, 2016 7 Pages
Introduction
Story 1
Johnson controls is thinking of a tax inversion merger with Tyco international to reduce their tax burden. This will help Johnson controls complete their move towards a more focused company in building controls (Independent, 2016). I will analyze the benefits and risks of such a merger on the companies involved as well as their employees.
Story 2
The government is considering a levy on sugar as part of a national strategy to tackle childhood obesity. However, Paul Polman, Unilever’s boss argues that there is little evidence that proves a sugar tax would help tackle obesity (The guardian, 2016a). I will analyze the effect of the sugar tax on consumer’s demand. I will also analyze Unilever’s actions as a result of this deliberation.
Story 3
After suffering their worst dip in Christmas sales since 2006, Waitrose is launching a value-focused campaign against its budget rivals Lidl and Aldi. The “Pick Your Own Offers” deal is to be their competitive advantage that allows customers to pick their favourite 10 products, from a list of 1,000 that they will be able to get a 20% discount on every time they shop (The guardian, 2016c). I will analyze Waitrose’ market structure and how it works as well as the impact of the competitive strategy.

Main body
Story 1
It is a horizontal merger of two firms who are moving in the same direction with the aim to focus their companies towards a ‘faster-moving, higher margin market (Financial times, 2016). Since the start of…
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