Summer Project _MBA_6212 Managerial Economics
Project Goals
* To select the methodologies that can lead to proper solutions and foster teamwork
* To determine and research different factors that can impact Managerial decision-making processes
* To apply different concepts form managerial Economics
* To provide a critical interpretation of the quantitative and qualitative data and assumption
* To apply proper techniques for evaluation of demand – Investment – pricing – production - NPV
* To research elements that help you support your decision making (this can be qualitative or quantitative reasoning)
* To demonstrate your ability to present and support a business case
Summary
This team project is a real case scenario used to apply your knowledge managerial economics elements and decision-making processes that will impact a company’s investment and profitability. Your team is asked to build the case, decide on the approach to collect data, perform data collection, and determine different internal and external factors that can influence the demand, investment, pricing and profitability
and articulate the different factors that lead to the best possible strategy decision. You are presenting your business analysis to a panel that will represent the CEO of the company and the board of directors and decide if your division will remain in the company or will be spined out of the company core business.
Background information
Your company Nanostick technologies. is dedicated to supply specialized surgical equipment to the medical industry in USA with a high reputation for quality, on time delivery, customer support. An opportunity has been presented to top management to enter a niche market very profitable for established competitors to diversify the portfolio and invest in a new technology to compete in the supply of new wound-closure devices and surgical sealants. You are the VP of finance and will lead a team ( to be identified) to do complete the analysis looking at least at , forces framework analysis (see below ref figure 1), demand, production, pricing strategy, marginal analysis for revenue and profit and how this would affect the value of the company if the business is sold in 5 years. You are required to complete the forces analysis and present based on the profit and grow expected explain the incremental value and dividends that this business will
ing to the company
Figure 1. (source :Managerial economics and business strategy)
Project deliverables:
1. Executive Summary (4-5 pages, double-spaced, professionally-written)
You are required to make a written executive summary. In this report, you will demonstrate your understanding of the concepts cover key findings and recommendations. Your deliverable should deliver the following:
· Introduction: outline the problem and its background
· Problem Statement: provide details and information about definitions and assumptions made in the analysis.
· Five forces framework analysis
· Demand analysis
· Cost and price elasticity analysis
· Production plan
· Pricing strategy
· Revenue, cost and margin incremental analysis and NPV
· Conclusions and Recommendations:
· References
· Appendix
2. PowerPoint presentation (6 minutes plus 2 minutes Q&A)
· Introduce your company’s name mission and goals as well as the role of each member of the team
· Provide clear background information
· Explain all financial and non-financial assumptions
· Present your critical data, models and analyses performed
· Present final strategy on how you made the decision and conclusions
3. Excel Sheet to show your quantitative analysis.
Project deliverables should be delivered on August 4th, 2021. Documents have to be submitted via Blackboard.
Evaluation Criteria
Conceptualization of the problem
5%
Literature Review and Research
10%
Economic Analysis
45%
Conclusion and Recommendations
10%
Presentation / Delivery
5%
Report Structure and writing
20%
Creativity (Out of the Box Thinking Skills) and Industry level analysis
5%
TOTAL
100%