Research Analysis for Business

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.