Organization Behaviour

Group GG

Commentary

Slide 1

Minimum pricing set on alcohol can help reduce binge drinking but can affect other areas that are complementary or inferior. This can have a great effect on criminal activity and also employment in the areas. Complementary areas include pubs, clubs, off licences and many more events that involve alcohol. By setting a price ceiling this will make going to these places more costly making the demand for these to decrease. This may resort in the closure of smaller run organisation such as the local pub that serves its local community, thus having a knock on affect.

Inferior goods include consumption of illegal drugs or criminal activity to get the alcohol for a less costly amount. Both ways will increase criminal activity so also have a knock on affect.

Depending on the areas that are involved in the price ceiling will depend upon how much they are actually affected. Poverty area such as Handsworth or Nechells may be affected a lot worse than places with more wealth such as Sutton Coldfield or Solihull as a whole. And if the minimum pricing was to be put into place the government would have to be sensitive about this.

The amount in which the price ceiling is set will also indicate the decrease in the demand for alcohol. The higher the increase in price the lower the demand for the product will become.

Different groups will be affected in different ways overall. Not many people consume alcohol alone and depend on their social circle to drink with. Everyone has a different income or cash available to be spent on drinking. So even if one or two people are seriously affected by the price ceiling the other are less likely to drink without them.

Slide 2

UK government admitted that binge drinking is serious problem in the country. That is why 'minimum price' has already been discussed by MPs. 'The Home Office’s research is focusing on determining what effects, if any, minimum pricing would have on alcohol related crime and...