Acc 561- Week 4

1573 Words7 Pages
Larson Inc. must consider the alternative economic futures for their industry. In any market, economic conditions will change over time. The company must be able to adapt and change with the economy to remain successful. The company needs to find solutions for the changing economy to keep increasing their revenue and decreasing their costs. The economy may go through a recession, expansion and peaks over their years in business. Larson, Inc. needs to analyze the difference scenarios and determine the best course of action for each type of economic future. Also, the company must consider the economy’s stage in the business cycle to make well-informed decisions. Economic projections The business cycle will have continual change…show more content…
should engage in perfect price discrimination, because the monopolist practicing perfect price discrimination will produce a larger output than the monopolist that doesn't (McConnell 2009). Larson can achieve this by charging a premium price for the batteries while circulating discount coupons directed at non-business consumers. This has the effect of selling the batteries at a higher price to buyers with inelastic demand, but also offering lower prices for the same product to more elastic buyers. This strategy will help ensure that Larson Inc. continues to build a strong brand image, and deriving the most sales from both inelastic and elastic consumer segments. If the economic situation should gain strength and move into expansion, Larson Inc. should poise to be much more aggressive in marketing. Again, the priority should be building Larson Inc.'s brand image and recognition. If the economy s expanding Larson should invest heavily in advertising, as well as packaging and store signage, to establish itself as the trusted name in electronics batteries. Another benefit to an expanding economy is the likelihood that slower markets such as recreational electronics will likely grow. Research and development teams should begin to incorporate technology aimed at personal gaming devices, personal readers, and digital video recording devices. This will allow Larson Inc. to offer a technologically advanced battery that meets the
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