Revise your Week Four business proposal using the feedback provided by your peers and facilitator as necessary. In addition to your week four paper, the second part of your paper will use the revised information to recommend appropriate pricing and nonpricing strategies for your new or existing good or service based on the projected economy’s stage in the business cycle and the prevailing projected economic conditions for one or more macroeconomic factors. Explain the evidence that supports these recommendations.
Required Elements:
•Describe the current global economic conditions and their effect on local macroeconomic indicators for your good or service.
•Describe the local economy’s stage in the business cycle.
•Describe how current credit market conditions affect your planning or operating decision for your good or service.
•No more than 2100 words (in addition to the 1400 word paper completed in week four, an additional three pages at most is needed)
WEEK 4 – WRITTEN ASSIGNMENT FEEDBACK
Student: Alisha Allen
Course ECO561
Date 10/27/15
Assignment: Week 4 Business Proposal Written Paper
Content/Development
Subject Matter:
The goal of this exercise is to use most the concepts in Week1 to date to analyze opportunity for developing a new good or service for a business. This involves using the economic concepts covered to address the following critical business decision factors:
• Market structure and Elasticity – Appropriately evaluated market structure and elasticity for the product and defends position on these key factors
• Pricing Strategy – Created a pricing strategy based on the assumed market structure and demand elasticity
• Non-price barrier to entry – Identify and justify non-pricing, barriers to entry based on market factor
• Increasing revenue – Chosen method to increase revenue based on pricing and non-pricing strategies
• Product differentiation- Demonstrated an understanding of the uses of product differentiation
• Economic concepts – Demonstrated an understanding of economic cost concepts including fixed, variable, marginal costs and cost minimization
• Profit maximization quantity – uses the concept of cost to determine profit maximization point
Others:
• Content is comprehensive, accurate and persuasive
• Displays an understanding of relevant theory
• Major points supported by specific details/examples
Comments: This paper could have been better. Your chosen product is excellent, however you could have applied the concepts more effectively
Appropriately evaluated market structure and elasticity for the product
Market structure: Good shot – The backbone of your analysis should be the assumed market structure of the industry your business belongs. The market structure determines your pricing and non-pricing strategies. For instance in your case one could assume the market structure of WB to be a monopolistic competition – given the nature of the industry. In this case you should justify the reason based on the number of participating companies in the industry. This market structure assumption should guide you in determining the optimum pricing strategies you could use.
Elasticity: Next you should determine the demand elasticity of WB products. One could assume that given the number of products providing similar general functions, the demand for this product relatively elastic. However, it is also important to consider that WB has a patent on his version of the product. This could make the demand for his product relative less elastic than the rest of the industry. Note that your assumed elasticity as well as the market structure do influence the type of pricing strategy you can use to gain competitive edge
Market structure Concept Graph – Incorporating appropriate market structure graph will help buttress your discussion on the market structure. You should use such graph to show your optimum price which in this case would be P on the graph. Note that the demand curve is your market segment demand and not the overall market demand. You could also leverage this graph for discussing your revenue and cost functions – in this case your pricing would be determined where MR=MC=D. This point also determines your profit maximizing quantity for WB products
Created a pricing strategy based on market factors
Next, you should use the underlying market structure and the demand elasticity assumption to determine pricing strategy for WB products. For instance as a business in monopolistic competitive market and given the relatively inelastic demand for the product, WB could have some freedom in pricing his unique product. He must however price by considering competition otherwise he could lose sales and market share. If he overprices, he will lose sales to the competition as some of target customers could opt for the less specialized products.
Created non-price barriers to entry based on market factors
Good non-pricing strategies. You could also emphasize need for WB to use advertising strategies that highlight the special features of his unique product. Given the barrier to entry due to his patent, WB could enjoy some non-price barrier to entry of his market at least until patent expiration
Demonstrated an understanding of the uses of product differentiation
WB could emphasize the special features of his unique product as product differentiation
Demonstrated an understanding of economic cost concepts
You should leverage monopolistic competition market structure graph to identify the key cost and revenue functions and how these functions interact to determine profit maximization point. In this case discuss profit maximization as the point where MR=MC or Q in the diagram above
Organization
The paper is organized in a logical and coherent manner. Transitions are used to improve flow.
• The introduction provides a sufficient background on the topic and previews major points
• Central theme/purpose is immediately clear
• Structure is clear, logical, and easy to follow
• Subsequent sections develop/support the central theme
• Conclusion/recommendations follow logically from the body of the paper • Though you could have focused on the requirement better, the paper was very well organized. You divided it into logical segments with clearly marked headings.
• You could however have focused on the rubric requirement better. That would enable you to stay focused on the key requirements of the paper
Mechanics
The author uses correct grammar and spelling. Format and citations are consistent with APA rules
• Rules of grammar, usage, punctuation are followed
• Spelling is correct
• Sentences are complete, clear, and concise
• Sentences are well-constructed with consistently strong, varied structure
• Transitions between sentences/paragraphs/sections help maintain the flow of thought
• Words used are precise and unambiguous
• The tone is appropriate to the audience, content, and assignment
Valid research is used to appropriately support the content. References to sources are used when required
• Research is adequate/timely
• Writer has gone beyond textbook for resources
• Format- including the title page, reference page, tables, and appendices —follows APA formatting guidelines –
• Properly cites ideas/info from other sources
• Paper is laid out effectively–uses, heading and other reader-friendly tools
• Paper is neat/shows attention to detail
Components of the assignment instructions are followed (Higher order thinking, number of examples, paper length, etc.)
• Compares/contrasts/integrates theory/subject matter with work environment/experience
• At an appropriate level, analyzes and synthesizes theory/practice to develop new ideas and ways of conceptualizing and performing
• No grammatical or spelling errors – good job.
• Good sentence structure
• Transition between paragraphs/segments was excellent
_________________________________________________________
• ECO 561 papers require relevant reference materials. You should use reference materials that enhance your knowledge of the concepts and supports the focus of your analysis.
• Try to use the class text as well as other outside reference materials to back up your papers
______________________________________________________________
• WB is a unique business scenario. You could have looked at the future market dynamics for the business as the company goes from market pricing control due to the patent to post patent period. Obviously, WB must adjust its pricing and non-pricing strategies to reflect this dynamic shift.
OVERALL COMMENT
• Please read my feedback very carefully and get back to me if you have any questions
• Use the Rubric in guiding you in focusing on the key requirement of all written assignment and support your paper with more reference materials
. .
The post Describe the local economy’s stage in the business cycle. appeared first on Unified Papers.