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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:
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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:
o Current stage of the business cycle.
o Real gross domestic product (GDP).
o Inflation as measured by the consumer price index (CPI).
o Unemployment rate.
o Federal funds rate.
o 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
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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:
o 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.
o Develop a recommendation for how the firm can manage its future production by
synthesizing the macroeconomic and microeconomic data presented.
o Propose how the firm’s position within the market and among its competitors will
allow it to take your recommended action.
o 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.
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