Purpose of Assignment The purpose of this assignment is the
creation of a research analysis. Every day, consumers make millions
of decisions that impact the marketplace and influence firms'
decisions. Firms use economic concepts, models, and other "tools"
of economics to help determine pricing, output, and profit
maximization. As an MBA student of economics, you can apply the
"tools" of economics to microeconomic and macroeconomic data to
create recommendations for how firms can maximize revenue, profit
and market share. Assignment Steps Resources: Tutorial help on
Excel® and Word functions can be found on the Microsoft® Office
website. There are also additional tutorials via the web offering
support for Office products. Scenario: Imagine you are a business
consultant to a firm of your choice. You have been asked to
analyze, advise, and create recommendations on how the firm can
ensure its future success in its current market. Work with your
instructor to choose a firm that matches the following criteria: a
publicly-traded company operating in the U.S. market. Note: A
publicly-traded company is a private-sector firm owned by its
shareholders/stock holders. Prepare a minimum 1,050-word analysis
of economic data and business data to explain how the core economic
principles impact the sustainability of the firm and what actions
the firm can take to ensure success. Address the following:
Identify the market structure your chosen firm operates in, analyze
your chosen firm's current market share, and identify the firm's
local/global competitors. Analyze the barriers to entry in this
market to illustrate the potential for new competition and its
impact on your firm's future in the market. Hints: Be sure you
review the barriers to entry discussed in the course text. You
might consider presenting the data graphically. Identify and
explain trends in current macroeconomic indicators for last three
years including: Current stage of the business cycle. Real gross
domestic product (GDP). Inflation as measured by the consumer price
index (CPI). Unemployment rate. Federal funds rate. Current rate
for borrowing funds such as the so-called "prime rate." Note: A
requirement of the Week 1 Influence of Economics on Household
Decision Making report was to gather data on the CPI, GDP, and
interest rates, so you should consider reviewing the feedback you
received on the Week 1 report. Evaluate trends in demand over last
three years and explain their impact on the industry and the firm.
Include quarterly (last two quarters) and annual sales (last three
years) figures for the product your firm sells. Create business
strategies by analyzing information and data related to the demand
for and supply of your firm's product(s) to support your
recommendation for the firm's actions. Remember to include a
graphical representation of the data and information used in your
analysis. Examine available, current data and information, such as
pricing and the availability of substitutes, and explain how you
could determine the price elasticity of demand for your firm's
product. Assess how the price elasticity of demand impacts the
firm's pricing decisions and revenue growth. Apply the concepts of
variable and fixed costs to your firm for informing its output
decisions. For instance, analyze how different kinds of costs
(labor, research and development, raw materials) affect the firm's
level of output. Based on the data gathered and analysis performed
for this report write a conclusion in which you: Create business
strategies, including price and non-price strategies, based on your
market structure to ensure the market share and potential market
expansions and explore global opportunities for your business in a
dynamic business environment and provide recommendations. Develop a
recommendation for how the firm can manage its future production by
synthesizing the macroeconomic and microeconomic data presented.
Propose how the firm's position within the market and among its
competitors will allow it to take your recommended action.
Recommend strategies for the firm to sustain its success going
forward by evaluating the findings from demand trends, price
elasticity, current stage of the business cycle, and government
policies. Cite a minimum of three peer-reviewed references and a
minimum of two government economic data sources/references. Format
your assignment consistent with APA guidelines. Click the
Assignment Files tab to submit your assignment.
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