...performance in BTM game Market structure analysis Strategies of our firm 3) Analysis of our problems in the BTM game MC and MR Plant size Price elasticity Training and process improvement advertising, product development and E-commerce 4) How to improve our performance in the future Macroeconomic analysis Competitor analysis Payoff matrix Kinked demand 5) Conclusion 2 1. Introduction and Summary Our performance in BTM game Our firm is a very good example of how to learn beat the market game because at beginning, none of our team members had any experience with making business decisions hence, we had poor performance at the beginning. But with hard work and learning how to apply economic theories to the game, we did much better in the last 3 quarters and enhanced our rank. Our final rank in the game is 5th . We ranked 6th in quarter 1 and quarter 2 and then because the poor performance, our rank went down to 7th in quarter 3. However, in quarter 6, we did very well and enhanced the rank from 7th to 6th. Then we kept doing well in quarter 7, which made us achieve the 5th position. Based on Figure 1 we can see that, during 8 quarters, we performed poorest in quarter 3, in which quarter our net profit was 8.6% less than the market average profit, and our best performance was in quarter 6, in which quarter our profit was 18.2% more than the market average profit. 3 Figure 1: The comparison of our profit and market average profit (quarter...
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...QMS 442- Research Article The Starbucks effect on the Toronto Housing Market Chandini Algoo 500571436 March 31, 2015 Abstract: This study is looking at the relationship between the sales price in Downtown Toronto and the locations of Starbucks. The models being used in this study is first, second and third order models. The main findings of this study conclude that there is strong correlation between the two variables. However, sales price do depend on the independent variables of size, number of rooms and parking space. Introduction: The Starbucks effect is known as a phenomenon that has changed the face of coffee in the recent decade (Vishwanath & Harding, 2000). The idea is to rebrand the coffee by selling it at a premium level to not only promote a beverage, but also a lifestyle(Vishwanath & Harding, 2000). Starbucks has rebranded their company to model a high-class lifestyle. With the Toronto housing market on a rise, this analysis is to compute the relationship between Toronto condos in relation to the distance of a Starbucks location. The types of models being used are the hypothesized regression models that take the dependent variable and comparing them to our four independent variables. Data Collection: The data collected was used from the REMAX.CA website, this is because it was resourceful in finding precise sizes, locations and market prices of the condominiums in 2015. The limitations of collecting this information was the amount...
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...ESTIMATING DEMAND IN EMERGING MARKETS FOR KODAK EXPRESS David M. Currie and Ilan Alon wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2011-07-08 Anna Johnson gazed at the information she had accumulated on various countries and wondered how she could use it to estimate the demand for Kodak Express (KE) outlets. She had learned from the Kodak market research department that demand for KE outlets depended on household income. To support one Kodak Express outlet, one of the following was needed: one million households with annual incomes equal to or exceeding the equivalent of US$15,000, two million households earning the equivalent of between US$10,000 and US$14,999, four million households...
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...A Dynamic Oligopoly Game of the US Airline Industry: Estimation and Policy Experiments Victor Aguirregabiria∗ University of Toronto Chun-Yu Ho∗ Boston University This version: November 19, 2007 PRELIMINARY AND INCOMPLETE VERSION Abstract This paper estimates the contribution of demand, cost and strategic factors to explain why most companies in the US airline industry operate using a hub-spoke network. We postulate and estimate a dynamic oligopoly model where airline companies decide, every quarter, which routes (directional city-pairs) to operate, the type of product (direct flight vs. stop-flight), and the fare of each route-product. The model incorporates three factors which may contribute to the profitability of hub-spoke networks. First, consumers may value the scale of operation of an airline in the origin and destination airports (e.g., more convenient checking-in and landing facilities). Second, operating costs and entry costs may depend on the airline’s network because economies of density and scale. And third, a hub-spoke network may be an strategy to deter the entry of non hub-spoke carriers in some routes. We estimate our dynamic oligopoly model using panel data from the Airline Origin and Destination Survey with information on quantities, prices, and entry and exit decisions for every airline company over more than two thousand city-pair markets and several years. Demand and variable cost parameters are estimated using demand equations and Nash-Bertrand equilibrium...
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...portfolio of stocks, bonds and cash. Next, we determine the optimal weights of all asset classes in the optimal portfolio. This study adds to the literature by distinguishing ten different investment categories simultaneously in a mean-variance analysis as well as a market portfolio approach. We also demonstrate how to combine these two methods. Our results suggest that real estate, commodities and high yield add most value to the traditional asset mix. A study with such a broad coverage of asset classes has not been conducted before, not in the context of determining capital market expectations and performing a mean-variance analysis, neither in assessing the global market portfolio. JEL classification: G11, G12 Key words: strategic asset allocation, capital market expectations, mean-variance analysis, optimal portfolio, global market portfolio. This study has benefited from the support and practical comments provided by Jeroen Beimer, Léon Cornelissen, Lex Hoogduin, Menno Meekel, Léon Muller, Laurens Swinkels and Pim van Vliet. Special thanks go to Jeroen Blokland and Rolf Hermans for many extensive and valuable discussions. We thank Peter Hobbs for providing the detailed segmentation of the global real estate market that supplemented his research paper. Last, but not least, we thank Frank de Jong for his constructive comments and useful suggestions during this study. * Corresponding author, email: r.doeswijk@robeco.com, telephone: +31 10 2242855. Electronic copy available at:...
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...BURGER MACHINES – MARKET SIZING Introduction This is a case study based on a real case that OC&C worked on in 2005, trying to gain an idea of the global market for Burger machines. This is typical of an ‘analytical’ case study that you will get asked – requiring sound numerical skills (the ability to competently use a calculator), the ability to come up with some sensible estimates and some commercial awareness. Excellent candidates differentiate themselves by the quality of the answer, but also the time taken to respond – some of the later, more advanced questions will only get touched upon if a candidate has ‘aced’ the earlier questions. Case Background Our client is responsible for the sale and manufacture of burger machines that produce the meat patties that populate the ever-popular hamburgers, sold worldwide by the likes of McDonald’s and Burger King. OC&C have been approached to help them think about their international expansion strategy, and in particular the opportunity posed by developing markets, such as China, India etc. Your specific task on this case is to scale the opportunity – i.e. how many Burger Machines could this company expect to sell into China in the future. Market estimation methodology First question: how would you estimate the market for burger machines? The good candidate explains that the market for burger machines is clearly driven by the fast food market, so we need to consider the total number of burgers that are likely to be sold, the...
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...insulin in a ‘shared’ refrigerator at work. With portable universal recharger and longer lasting battery, the mini-fridge can be charged on travel and less frequently. 2. Target Market The target market for Swisse™ mini-fridge is primarily diabetics’ constantly on travel or away from home. This product would allow diabetics to travel with ease and administer insulin without having to worry about storage or safety. 3. Initial Approximate Price Currently, we believe there are no such products in the Indian market. However, these products are present in US and Europe, retailing anywhere from US$65 to $299. We will have two different offerings of the product, Swisee™ mini-fridge smart and Swisee™ mini-fridge light, differentiated by cartridge storage capacity and battery life. The price of Swisee™ mini-fridge light for price sensitive consumers will be 2500 INR. The price of Swisee™ mini-fridge deluxe for consumers that are looking for a high cartridge storage capacity mini fridge with longer last battery life will be 4000 INR. 4. Market Potential The market potential for Swisee™ was estimated in top-down chain ratio approach. The market Swisee™ is only confined to India. Since there is significant difference in purchasing power in urban and rural population in India, Swisee™’s market will be urban patients with diabetic I who are middle or upper class in...
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...intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. There are approximately 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). I. Current Scenario: India's pharmaceutical market grew at 15.7 per cent during December 2011. Globally, Indiaranks third in terms of manufacturing pharma products by volume. According to McKinsey, the Pharmaceutical Market is ranked 14th in the world. By 2015 it is expected to reach top 10 in the world beating Brazil, Mexico, South Korea and Turkey. More importantly, the incremental market growth of US$ 14billion over the next decade is likely to be the third largest among all markets. The US and China are expected to add US$ 200bn and US$ 23bn respectively. McKinsey & Company’s report, “India Pharma 2020: Propelling access and acceptance, realizing true potential,” predicted that the Indian pharmaceuticals market will grow to US$55 billion in 2020; and if aggressive growth strategies are implemented, it has further potential to reach US$70 billion by 2020. While, Market Research firm Cygnus’ report forecasts that the Indian bulk drug industry will expand at an annual growth rate of 21 percent...
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...-1- WHAT IS HIDDEN, IN THE HIDDEN ECONOMY OF PAKISTAN? SIZE, CAUSES, ISSUES AND IMPLICATIONS Ahmed Gulzar Novaira Junaid Adnan Haider Pakistan Institute of Development Economics, Islamabad, Pakistan National Transport Research Centre (NTRC), Ministry of Communications Beaconhouse National University (BNU), Lahore, Pakistan State Bank of Pakistan, Karachi, Pakistan Abstract There is a worldwide contemporary debate about the role of the hidden economy in achieving the goal of sustained and inclusive economic growth and development, especially in the context of its spillover effects on the formal economy. For this purpose, policy makers and academicians have made concerted efforts to estimate the size of the hidden economy and to analyze its causes, issues and implications on key macroeconomic variables. However, there is a consensus among the policy makers that a better macroeconomic policy formulation and its true implementation are subject to the proper management of the associated issues of the hidden economy with suitable policy measures. In Pakistan, it is generally assumed that the hidden economy contributes about 30% to 50% to the overall GDP. The purpose of this paper is to estimate more precisely the size of the hidden economy with the determination of its potential causes and implications. Five statistical and structural modeling approaches namely; simple monetary approach, modified monetary approach using dynamic ordinary least square (DOLS)...
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...productivity and exporting in German manufacturing. We find a causal link from high productivity to presence in foreign markets, as postulated by a recent literature on international trade with heterogeneous firms. We apply a matching technique in order to analyze whether the presence in international markets enables firms to achieve further productivity improvements, without finding significant evidence for this. We conclude that high-productivity firms self-select themselves into export markets, while exporting itself does not play a significant role for the productivity of German firms. Keywords: Exports; Export-led growth; Total Factor Productivity; Heterogeneous firms. JEL-Classification: F10, F13, F14, D21, L60 Addresses: *Bocconi University, Milan, Italy (Email: jens.arnold@uni-bocconi.it) ** Centre for European Economic Research (ZEW), P.O.Box 10 34 43 68304 Mannheim, Germany. Email: hussinger@zew.de (corresponding author) 1 Introduction Why do some firms in an industry export, while others in the same industry persistently serve the domestic market only? What are the determinants behind these different patterns within sectors? How are these differences in export behavior related to productivity differences among firms? Do the best performers go abroad, or do firms become more productive as they serve foreign markets? This paper analyzes these questions empirically for a sample of German manufacturing firms. In response to a growing...
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...Preliminary Market Strategy Market size – Geriatric Population (age 65 and over) * 17% of the current US population (23 million) year 2010 * 27 % of the projected population by 2020 (32 million) * 31% of the projected population by 2030 (37 million) Market size – Senior Population (age 50 to 64) * 18% of the current population (17 million) year 2010 * 22 % of the projected population (19 million) by 2020 * 24 % of the projected population (22 million) by 2030 Estimated Usage of Glasses for Reading/Corrective Vision * 62 % of US citizens over the age of 50 * 73% of US citizens over the age of 70 Number of New Prescription Glasses per Year per Age Cohort * 50 – 59. 3.2 million * 60 – 69. 4.9 million * 70 – 79. 5.5 million * 80 – 89. 8.1 million Actual Market Size Estimates (reading and corrective vision) * 2010 – 33.2 million * 2020 – 41.5 million * 2030 – 55.4 million Geriatric Population is the fastest growing cohort in the United States followed by the senior cohort. In other countries the use of eyewear for prescription purposes is far exceeded by the United States. However, the use of reading glasses is very popular with the geriatric population. Some estimates have the usage up to 12 % in European and Asian countries. Growth of Senior/Geriatric Market in the U.S. Combined Senior/Geriatric cohorts will combine to about 44% of US population by 2050. Preliminary Target Markets American Association...
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...Market Potential Market Potential specializes in providing sustainability market support to help its clients reduce their environment impact and create significant market, appeal in the new green economy. In today’s market place, business and consumers are becoming savvy buyers. YouthSkin, will decided the price of the product and the geographic location of the market, that their customers will come from, who and where will the competitions. YouthSkin must calculate the portion of the market they can reasonably expect to capture. Market potential is an estimate of the amount of money YouthSkin can expect to make from the product they plan to market. YouthSkin estimate will only be as good as the information they use and the assumptions they make. There are seven steps to estimating market potential (YouthSkin) have already completed the first four steps. A. Define the market segment (Target) B. Define the geographic boundaries of the market (Japan and the United States). C. Define the Competition (Japan’s SYL, The Scrub shop by Velvet Scrubs, and IMOMOKO, In the United States Soap.com, Lalicious Sugar Soufflé Scrub, Ultra Beauty, Tree Shrew, Sugar Body and Alba Organic Hawaiian Body Scrub). D. Define the market size E. Estimate market shares F. Determine the average annual consumption G. Estimate an average selling price. In establishing the market shares or potential, this will allow YouthSkin to determine if their...
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...risk-taking in pre-crisis investment banks Nemanja Radić1, Franco Fiordelisi2, Claudia Girardone3 Abstract Investment banks’ core functions expose them to a wide array of risks. This paper analyses cost and profit efficiency for a sample of investment banks for the G7 countries (Canada, France, Germany, Italy, Japan, UK and US) and Switzerland prior to the recent financial crisis. We follow Coelli et al. (1999)’s methodology to adjust the estimated cost and profit efficiency scores for environmental influences including key banks’ risks, bank- and industry specific factors and macroeconomic conditions. Our evidence suggests that failing to account for environmental factors can considerably bias the efficiency scores for investment banks. Specifically, bank-risk taking factors (including liquidity and capital risk exposures) are found particularly important to accurately assess profit efficiency: i.e. profit efficiency estimates are consistently underestimated without accounting for bank risktaking. Interestingly, our evidence suggests that size matters for both cost and profit efficiency, however this does not imply that more concentrated markets are more efficient. JEL classification: D2, G24, G32, L25 Key words: Investment Banking;Stochastic Frontier Analysis; Efficiency; Environmental Conditions; Banking Risks. 1 Centre for EMEA Banking, Finance and Economics, London Metropolitan Business School, London Metropolitan University, 84 Moorgate, London EC2M 6SQ, UK;...
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...tremendously with the cosmetics market is growing at 15-20% annually, twice as fast as that of the United States and the European markets. According to the analysis the figures given by the Confederation of Indian Industries (CII), the total of Indian beauty and cosmetic markets size currently stands at US$950 million and it is showing growth between 15-20% per annum. The retail beauty and cosmetic market in India is currently estimated at USD 950 million which is pegged at USD 2.68 billion by the year 2020. The market consumption volume is increased by 5.6% in the period 2008-2012 to reach a total of 88.6 million units in 2012. The markets volume is expected to rise to 109.6 million units...
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...Keiretsu Membership, Firm Size, and Corporate Returns on Value and Cost∗ Xueping Wu† , Piet Sercu‡ and Charles Chen§ First draft: November 1998; this version: October 2000 ∗ Jun Yao and Shu-Chuen Chong provided helpful research assistance. The authors thank Kathryn Dewenter, Amar Gande, Larry Goldberg, Ser-Huang Poon, Kazunori Suzuki, and other participants at the 1999 WFA and 2000 EFA Conferences and workshops at HKUST, K.U.Leuven, and Strathclyde; and Yasushi Hamao, Nancy Huyghebaert, Shuhe Li, Xijia Su, Linda Van de Gucht, and Cynthia Van Hulle for useful discussions or comments that have substantially improved content as well as presentation. All remaining errors are the authors’. † City University of Hong Kong, Department of Economics and Finance, Tat Chee Avenue, Kowloon, Hong Kong. Tel: (852) 2788 7577; Fax: (852) 2788 8806; email: efxpwu@cityu.edu.hk. ‡ (Corresponding author) KU Leuven, Graduate School of Business Studies, Naamsestraat 69, B3000 Leuven; Tel: +32 16 32 6756; Fax: +32 16 32 6620; email: piet.sercu@econ.kuleuven.ac.be. § Department of Accountancy, City University of Hong Kong; Tel: (852) 2788 7909; Fax: (852) 2788 7002; email: accpj@cityu.edu.hk. Abstract We test how keiretsu membership affects the Fama and French (1999) required IRR on value (or cost of capital) and the IRR on cost (or return on investment), 1974-95, of all listed non-financials in Japan. Rather than computing point estimates from aggregate data, we employ...
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