...Some of the companies that manufacture low-calorie microwaveable foods are Lean Cuisine and Healthy Choice. “Lean Cuisine first started in 1981. The popularity of this famous line of frozen foods increased a lot throughout the years as Lean Cuisine meals are very convenient, simple to prepare and always delicious.” (Lean Cuisine, 2015) “In 1988, CEO Mike Harper suffers a mild heart attack while traveling on business to California. He realized he needed to change his diet. So Harper began his search for foods that satisfy his taste and his health needs. His search leads to the development of Healthy Choice.” (ConAgra Foods, 2015) Those two companies are our competitors. We will look at their different strategies such as product marketing and pricing as comparable to our strategies. 1.Outline a plan that will assess the effectiveness of the market structure for the company’s operations. In order for a company’s operations to assess the effectiveness of their market structures, it must see how it differentiates from its competitors such as Lean Cuisine and Healthy Choice. Profile variables such as a socio-economic group or geographic locations are very essential in deciding the target audience. In determining the market structure for the food industry, one must keep in mind their target audience. A study of the economic growth of the entire food industry is very much needed and important. There also need to be an intention and objective for growth among the company itself. The...
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...perfect competition; monopoly, monopolistic competition, and oligopoly—and the implications of the market structures for competitive strategies and profit maximization. You will participate in discussions that compare various market structures and their characteristics, evaluate the effectiveness of competitive strategies in market structures, and determine profit-maximizing strategies based on a market structure analysis. The topics incorporate Week One material related to market outcomes and prices & Week Two concepts, which focused on productivity and costs. This week includes activities that lead you to identify the market structure firms compete in and the factors that lead to these determinations. They also allow you to evaluate the effect of market structure on profit maximization in the short and long run. You will learn how to use graphs and charts of profit maximization in each structure. You learn how the market structure positively and negatively affects a firm and how the effectiveness of the competitive strategies in the structure affects the organization’s long-term profitability. Critical to this understanding is the fundamental concept that a firm maximizes profits where marginal revenues equal marginal costs. The ability to focus on the marketplace, an organization’s cost structure, and market structure on competitive strategies and profit maximization will emphasize the importance of economics in decision-making. Market Structure OBJECTIVE: Compare various...
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...to college success and opportunity. Founded in 1900, the College Board was created to expand access to higher education. Today, the membership association is made up of more than 5,900 of the world’s leading educational institutions and is dedicated to promoting excellence and equity in education. Each year, the College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success — including the SAT® and the Advanced Placement Program®. The organization also serves the education community through research and advocacy on behalf of students, educators, and schools. For further information, visit www.collegeboard.org. AP Equity and Access Policy The College Board strongly encourages educators to make equitable access a guiding principle for their AP programs by giving all willing and academically prepared students the opportunity to participate in AP. We encourage the elimination of barriers that restrict access to AP for students from ethnic, racial, and socioeconomic groups that have been traditionally underserved. Schools should make every effort to ensure their AP classes reflect the diversity of their student population. The College Board also believes that all students should have access to academically challenging course work before they enroll in AP classes, which can prepare them for AP success. It is only through a commitment to equitable preparation and access that true...
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...Operations Decision Managerial Economics and Globalization ECON550 May 24, 2015 This paper will provide insight into the low-calorie microwavable foods in support of the company’s long run and short run operations. When it comes to low-calorie frozen meals there are many options; this paper will delve into two companies and look at their competitors. First is to outline a plan that assesses the effectiveness of the market structure for company operations. Next is to determine two factors which could cause a change in the market structure. Third is analysis of the short and long run cost functions given certain costing information. Then the paper will suggest a pricing policy to enable the food company to maximize profits. Finally, a recommendation of two actions the company should institute in order to improve profitability and deliver more value to their stakeholders. Market Share U.S. consumers have switched gears into a more sustainable path toward healthy eating, which is now influencing the relative growth rates of different food categories (Black Book, 2007). Healthier versions of packaged-foods products have grown rapidly in recent years. These include food products that are either organic, fortified with vitamins or minerals, have reduced sugar, fat, or salt content, are high fiber, soy-based or gluten/lactose-free. In the first assignment the frozen low-calorie food market was in perfect competition. As the popularity of the low-calorie frozen meals...
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...The goal of much of business strategy is to achieve a sustainable competitive advantage. Michael Porter identified two basic types of competitive advantage: * cost advantage * differentiation advantage A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. Cost and differentiation advantages are known as positional advantages since they describe the firm's position in the industry as a leader in either cost or differentiation. A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. The following diagram combines the resource-based and positioning views to illustrate the concept of competitive advantage: A Model of Competitive Advantage Resources | | | | | | Distinctive Competencies | | | Cost Advantage or Differentiation Advantage | | | Value Creation | | Capabilities | | | | | | Resource : http://www.quickmba.com 2- Strategists Strategists are individuals who are most responsible for the success or failure of an organization. Strategists are individuals who form strategies. Strategists have various job...
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...analysis to support business strategy decisions that promote competitiveness in an environment of changing domestic and international market conditions, government regulations, trade policies, and resource availability. Systematically analyzes how global economic integration affects the production, input sourcing, and pricing decisions of firms operating in different market structures. INSTRUCTIONAL MATERIALS Required Resources McGuigan, J. R., Moyer, R. C., & Harris, F. H. D. (2008). Managerial economics: Applications, strategy, and tactics (12th ed.). Mason, OH: South-Western Cengage Learning. Microsoft Excel (2003 version or newer) [Computer software]. Redmond, Washington. Supplemental Resources Board of Governors of the Federal Reserve System. (2011). General format. Retrieved from http://www.federalreserve.gov Burgernomics to go (2012, June 9). The Economist, 43(8788), 83. Points of light (2012, July 14). The Economist, 404(8793), 21-24. The visible hand (2012, January 21). The Economist, 401(8768), 3-5. Wall Street Journal. (2011). General format. Retrieved from http://online.wsj.com COURSE LEARNING OUTCOMES 1. Assess how managerial economics is used in business decision making. 2. Analyze how production and cost functions in the short run and long run affect the strategy of individual firms. 3. Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on...
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...between, 1979 and 1985, Saudi Arabia pursued an aggressive and active policy with the intention to shape the world oil market. In the beginning, the company experienced an increase in the oil prices, but this effect was mostly felt by Saudi Arabia because of the market position it occupies. Some of these factors include a pricing policy that is moderate the size of the oil reserves and the company’s position in the world market. The Saudi Arabia government at that instant came up with laws to reduce the possibility of other entrants into the trade. It is not likely that Saudi will ever control the production of oil mainly because of two main factors; one being the role played by the country and impact of oil in the world economy are both experiencing a decline. The development of OPEC back in 1960, however, changed the scene of the oil industry to an oligopoly oil industry characterized by cartels. This is an institution characterized by few productive members who control the product price. When it comes to OPEC, the treaty between the groups controls how much oil each company is allowed to produce. Despite the increase in oil prices experienced back in 1970, the price of oil has not shifted much in later years (Yizraeli 4). The demand and the supply of oil in the long run and the short run due to this model would differ depending on some economic factors.  2. Hypothesize the basic short-run and long-run behaviors of the model in the...
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...* Who are the winners and losers of this? (who are the affected stakeholders?) Discuss the effects on different stakeholders in society of a particular policy or event (domestic producers, consumers, government, foreign producers, high-income people, and low-income people.) * What are the most important advantages and disadvantages of situations or issues identified in the articles? (Weigh the advantages and disadvantages of certain economic policies ) * What are the short-term and long-term implications of economic strategies suggested in the article or by you, in your examination of the situation? (Compare the short-run and long-run effects of an economic policy or a decision by a particular stakeholder in a market) * Have you questioned the validity of data presented in the article, in terms of whether it is appropriate, whether it is reliable, or whether it is still relevant? Are there any bias in the way the article was written? * Can you detect contradictions/limitations between economic theory and the real world problem at hand? * Which of the arguments that are presented are the most convincing and why? * Can you predict what will happen in the future based on what happened in this article Useful phrases to help with evaluation: * On the other hand...... * However, in the long/short term...... * The most important cost is..... because.... * ..is somewhat insignificant compared to ... * Other stakeholders such as.... ...
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...between, 1979 and 1985, Saudi Arabia pursued an aggressive and active policy with the intention to shape the world oil market. In the beginning, the company experienced an increase in the oil prices, but this effect was mostly felt by Saudi Arabia because of the market position it occupies. Some of these factors include a pricing policy that is moderate the size of the oil reserves and the company’s position in the world market. The Saudi Arabia government at that instant came up with laws to reduce the possibility of other entrants into the trade. It is not likely that Saudi will ever control the production of oil mainly because of two main factors; one being the role played by the country and impact of oil in the world economy are both experiencing a decline. The development of OPEC back in 1960, however, changed the scene of the oil industry to an oligopoly oil industry characterized by cartels. This is an institution characterized by few productive members who control the product price. When it comes to OPEC, the treaty between the groups controls how much oil each company is allowed to produce. Despite the increase in oil prices experienced back in 1970, the price of oil has not shifted much in later years (Yizraeli 4). The demand and the supply of oil in the long run and the short run due to this model would differ depending on some economic factors.  2. Hypothesize the basic short-run and long-run behaviors of the model in the...
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...management process is needed for a company. Strategic Management is a set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. Its purpose is to identify strategic factors those external and internal elements that will determine the future of the corporation. The simplest way to conduct environmental scanning is through SWOT analysis. Which, SWOT is an acronym used to describe the Strengths, Weaknesses, Opportunities, and Threats, that are strategic factors for a specific company. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management. These variables form the context within which the corporation exists. However, the internal environment of a corporation consists of variables that are within the organization itself and are not usually within the short-run control of top management. These variables form the context in which work is done. They include the corporation’s structure, culture...
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...investor borrows money in a relatively low interest rate currency (funding currency) and effectively invests in a high interest rate currency by converting funds into the high interest currency and lending the amount to yield a higher return. We can show how the European Central Bank (ECB) to permanently increase the money supply will have a direct affect on the domestic Australian economy. This form of carry trade behavior will cause instability in the domestic exchange rate to which the Reserve Bank of Australia (RBA) can respond with an appropriate policy. BODY: * European Central Bank action To understand the full extent of the carry trade, we must appreciate the operations of the ECB in managing the money supply and effectively stimulating necessary changes to proceed with a carry trade strategy. The ECB having direct control of the money supply enables them to increase the money supply through looser monetary policy, for example. This is seen graphically in Figure 1 of appendix A [krugman, Obstfeld & Melitz, 2012]. From the graph we can see the Australian money market is initially at equilibrium at point 1 and the foreign exchange market at 1’, equating to an exchange rate of E$/€1. Now with the ECB action we illustrate the increase in money supply by a shift to the left of the expected Euro interest rate. Foreign exchange market equilibrium is now at point 2’ with a new exchange rate at E$/€2. Hence the Euro depreciates against the Australian dollar. The expected...
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...Cross-Elasticities 25 May 2012 Todd Litman Victoria Transport Policy Institute Abstract This paper summarizes price elasticities and cross elasticities for use in public transit planning. It describes how elasticities are used, and summarizes previous research on transit elasticities. Commonly used transit elasticity values are largely based on studies of short- and medium-run impacts performed decades ago when real incomes where lower and a larger portion of the population was transit dependent. As a result, they tend to be lower than appropriate to model long-run impacts. Analysis based on these elasticity values tends to understate the potential of transit fare reductions and service improvements to reduce problems such as traffic congestion and vehicle pollution, and understate the long-term negative impacts that fare increases and service cuts will have on transit ridership, transit revenue, traffic congestion and pollution emissions. Originally published as “Transit Price Elasticities and Cross-Elasticities,” Journal of Public Transportation, Vol. 7, No. 2, (www.nctr.usf.edu/jpt/pdf/JPT 7-2 Litman.pdf), 2004, pp. 37-58. Todd Litman 2004-2011 You are welcome and encouraged to copy, distribute, share and excerpt this document and its ideas, provided the author is given attribution. Please send your corrections, comments and suggestions for improvement. Transit Elasticities and Price Elasticities Victoria Transport Policy Institute Introduction Prices affect consumers’...
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...Assignment 1 show that the product is inelastic. The market structure is determined to be a monopolistic competition market. Lean Cuisine was first established in the early 80’s in response to the increasing desire of consumers for weight management products (Nestle, 2014). Lean Cuisine is owned by Nestle and offers variety of frozen foods and is a leading choice for low calorie food. Demographic market segmentation is a strategy where the company divides the larger market into groups based on several defined traits (Kokemuller, 2014). These traits include age, race, gender, marital status, occupation, education and income are included (Kokemuller, 2014). In analyzing these variables you can look at behavioral traits to determine buying patterns. In determining the market structure for food industry, you should first have a market strategy. The purpose of a marketing strategy is to help a company make as much profit as they can each year. The marketing strategy can always change and will never stay the same. In developing a market strategy a specific demographic will need to be targeted. Consumer behavior is a process that can help determine a purchase decision. Once marketers have enough data about our shopping habits and preferences, they...
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...Student's Name Instructor's Name Course Code Date 3.0 Inflation and Unemployment Inflation and Unemployment are both intertwined. Inflation is a continuous increase in the rate at which the market prices for goods, as well as, services of the market rise and hence, the buying or purchasing power of goods and services falls. When inflation rises most businesses start putting in place tighter monetary policies that end up sacrificing job creation and wage growth that slows down economy growth. Unemployment refers to an economic situation in which people search for jobs or work but are unable to get the jobs thought they are able to work and accept the market wage rates given by firms. This means that when there are exists no vacancies, then there are no jobs. Unemployment can be used as an effective indicator of future inflation. When there is inflation in the economy value of money, falls meaning that the average goods' price would increase to a high level. For instance, if the economy goes to recession the unemployment levels rise. Inflation and unemployment also known as stagflation was first reported in 1958 by A. W. Phillips he discovered that when unemployment falls, or there are vacancies available, workers were empowered to push for higher wages and, as a result company's passed these higher wage costs to consumers, which in turn results in higher prices of goods and services. These led to inflationary buildup in the economy. Both inflation and unemployment are related...
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...TASK 1 1.1 Identify the purpose of different types of organization The most basic objection of any business is to undertake endeavors for the profit of the owners/stakeholders. All business activities are undertaken for the benefit of its stake holders. Business undertakings are selected by organizations based on the nature, size and purpose of the organization. A brief over view of different types of organization are as follows: Sole Proprietorship: Sole proprietorship is one individual or married couple in business alone. Sole proprietorships are the most common form of business structure. This type of business is simple to form and operate, and may enjoy greater flexibility of management, fewer legal controls, and fewer taxes. However, the business owner is personally liable for all debts incurred by the business. Partnership: Partnership comprises of 2 or more persons who mutually agree to contribute money, labor, or skills to a business. Each partner shares the profits, losses, and management of the business and each partner is personally and equally liable for debts of the partnership. Formal terms of the partnership are usually documented in the Partnership Deed. Private Limited Company: Private Limited Company is whereby shares of the company are issued to a limited number (usually within a family of friends) of individuals. These share holders are owners of the business and their liability is limited to the extent of the investment in the business. Since the...
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