This week, you will apply economic principles
presented in Weeks One through Three. Your assignment...

Question

This week, you will apply economic principles
 presented in Weeks One through Three. Your assignment will be reviewed by
 your peers (for the week five assignment) and by your facilitator.

Business
 Proposal
 
 Select a publically traded business with which you are familiar. Refer to
 the company’s annual and quarterly shareholder reports (10-k and 10-Q -- you
 should be able to find these on the company website.) You will also need to perform significant additional
 research on the company and the product to properly complete this assignment.
 
 Write a
 bullet point business analysis of no more than 1200 words to improve an
 existing good or service for your chosen company. Include elasticity of demand and the market
 structure for the company’s good or service. Analyze data to determine
 fixed and variable costs.
 
 Include
 economic analysis for the following questions:
 
 ·
 What are the company’s strategies to increase
 revenue?
 
 ·
 Define the economic theory and show how you
 can determine the profit-maximizing quantity?
 
 ·
 How could you use the concepts of marginal
 cost and marginal revenue to maximize profit? What information do you need to
 determine this? Without this information, how would you make a decision?
 
 ·
 What the company’s strategy for pricing and
 non-pricing strategies?

·
 What are the barriers to entry for your chosen
 product? Can you create or increase barriers to entry? If so, how?
 
 ·
 Are there other ways to minimize costs for the
 product?
 
 For each of
 the above assignment requirements, you must provide a section heading in your
 paper. 
 
 Format
 your business proposal consistent with APA guidelines.

Discuss this week’s objectives with your team.
 Your discussion should include the topics you feel comfortable with, any
 topics you struggled with, and how the weekly topics relate to application in
 your field.
 
 Prepare a 1- to 3-page paper detailing the
 findings of your discussion

David · Accepted Answer

Economics
Economics
Economics 
Company analysis and recommendations 
Business analysis to improve an existing good or service 
 Introduction 
Wal-Mart is a well known retail chain. It has proven to be a market leader in their own 
domains and so should be good opportunities for investments. 
 Business analysis 
Return on investment and financial analysis as well as economic analysis is a very 
important measure of rating companies based on their efficiency of operations and optimum 
utilization of capital. It is very essential to evaluate the Return on Investment of a company as 
well as the earnings per share in order to know how well it is operating as well as to know as to 
what are the prospects of a good return on our investments in that company.  
 Elasticity of demand and market structure 
Demand in this industry as well as for Wal-Mart which operates in a highly competitive 
market structure is elastic to a great extent since price has a direct influence on the volumes 
purchased. Moreover switching costs are low. Economic growth spurs and increases the output 
from the industry. 
 Data analysis for fixed and variable costs 
Based on the 10 K report of Wal-Mart and the analysis of the given costs, the main fixed 
costs include infrastructure and facilities and variable costs include procurement and operational 
costs as well as advertising and promotion.  
 Company‟s strategies for increasing revenue 
Economics 
Wal-Mart has used the strategy of providing higher value to consumer. The concept of 
change is relatively old but its importance in the present world of marketing is immensely 
growing as firms are expanding into the global markets. It becomes essential that there be higher 
levels of focus on the macro environmental changes so that it becomes possible to ensure better 
growth and levels of competitiveness for a firm. So Wal-Mart has a high level of focus on 
adapting to change and using e commerce and e marketing strategies for profit maximization. 
Along with this cost reduction is also used to a great extent (Bhagwati, J., A. Panagariya, and T. 
N. Srinivasan. 2004).  
 The economic theory and determination of profit-maximizing quantity 
The economic theory applicable in this case is of perfect competition where in profit 
maximization and maximization of volumes of sales is highly correlated to the levels of value 
provided to consumers and the same is being done by Wal-Mart. In case of international 
business, comparative advantage is an important factor that can help analyze the effectiveness 
with which a nation is operating. It is essential that there be consideration of the Ricardian model 
and evaluation of growth and development in context of comparison with other nations. 
 Using the concepts of marginal cost and marginal revenue to maximize profit – 
information requires and making a decision without this information  
The 10 K report clearly shows recent investments of Wal-Mart in other nations as well as 
expansion along with a relevant increase in revenue and profits. In this way the marginal returns 
on marginal costs is higher and it helps expand the business. In this way globalization has 
created an impact on the economy as well as the firm since it does have a competitive advantage.

This week, you will apply economic principles presented in Weeks One through Three. Your assignment will be reviewed by your peers (for the week five assignment) and by your facilitator. Business...

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