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.
| Content | Met | Partially Met | Not Met | Comments: | Identified the market structure student’s chosen firm operates in, analyzed student’s chosen firm’s current market share, and identified the firm’s local/global competitors. Analyzed the barriers to entry in this market to illustrate the potential for new competition and its impact on firm’s future in the market. | | | | | Identified and explained 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.” | | | | | Evaluated trends in demand over last three years and explained their impact on the industry and the firm. Included quarterly (last two quarters) and annual sales (last three years) figures for the product student’s firm sells. Created business strategies by analyzing information and data related to the demand for and supply of firm’s product(s) to support student’s recommendation for the firm’s actions. Included a graphical representation of the data and information used in student’s analysis. | | | | | Examined available, current data and information, such as pricing and the availability of substitutes, and explained how student could determine the price elasticity of demand for firm’s product. Assessed how the price elasticity of demand impacts the firm’s pricing decisions and revenue growth. | | | | | Applied the concepts of variable and fixed costs to firm for informing its output decisions. Analyzed 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 student’s conclusion included: · Business strategies, including price and non-price strategies, based on market structure to ensure the market share and potential market expansions. Also included exploration of global opportunities for student’s business in a dynamic business environment and provided recommendations. · A recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented. · Proposal for how the firm’s position within the market and among its competitors will allow it to take your recommended action. · Recommended 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. | | | | | The analysis is a minimum of 1,050 words in length. | | | | | | | Total Available | Total Earned | | | | 85 | #/85 | | Writing Guidelines | Met | Partially Met | Not Met | Comments: | The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. | | | | | Intellectual property is recognized with in-text citations and a reference page. | | | | | Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. | | | | | Sentences are complete, clear, and concise. | | | | | Rules of grammar and usage are followed including spelling and punctuation. | | | | | | | Total Available | Total Earned | | | | 35 | #/35 | | Assignment Total | # | 120 | #/120 | | Additional comments:
Answered Same Day
Nov 02, 2021
Solution
Alomita answered on
Nov 05 2021
COCA- COLA BUSINESS MODEL
A publicly traded company is that type of a company whose ownership is completely organised by the shares of stock which are intended to be freely traded on the stock exchange or in over the counter markets. Formulated in the year 1886, being an American multinational corporation , the Coca-Cola company is involved in manufacturing, retail, and marketing of non alcoholic beverage concentrates and syrups. It is famously and best known for its flagship beverage , coca cola which was formulated by pharmacist , John Stith Pemberton in Atlanta, Georgia.
Among all the variations in the forms of market structure, the Coca-cola company falls in to oligopoly form of the market structure due to having dominance over a limited or very less number of beverage companies in the industry. History tells us that this company has proved itself being number one in the world in producing beverages and thus many small or less powerful beverage producer were acquired. Minute-maid, Thumsup, Honest tea , Monster drink and many more which have been acquired by the Coca-cola.
CURRENT MARKET SHARE , LOCAL AND GLOBAL COMPETITORS AND BARRIERS TO ENTRY :
An oligopoly market structure can be defined as small firms belonging to the same industry competing with each other to grab the market share by producing homogenous products or some what differentiated may be in the colour, size, packaging or other variations. A firm in order to entry an oligopolistic market faces certain ba
iers to entry namely very high entry costs in capital expenditures , legal privilege like license to produce a medicine or to use wireless spectrum , copyright and more importantly proper dominance strategies to maximize profits and to reach higher market shares than its opponents .
Coca cola is still the king in the world beverage industry. Its market share has risen from 17.3% to 17.8% while Pepsi’s , its nearest competitor globally , has dropped from 10.3%to 8.4% according to Beverage Digest, a trade publication .Pepsico, DR Pepper Snapple , Red Bull, Nestle, Parle are leading competitors of Coca-cola.
MACROECONOMIC INDICATORS:
a. Cu
ent stage of business cycle:
There are mainly four stages of the business cycle, expansion , peak , recession and trough. The coca-cola is a great example of
and that has had a very long product life cycle. From the beginning its time favoured in the maturity period. However, reports catering to recent times about its sales leads to a question whether it has entered into the decline stage or not. Many reports such as The Fortune.com story publicly denounce that the overall sales of ca
onated soft drinks fell for the 11th consecutive year in the USA, with 2015’s decline 1.2% with a greater fall than...
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