Week 5 Assignment
BUS 640 Managerial Economics
Ashford University
January 2014
Week 5 Assignment
Problem 1:
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Alba and Gavigan set up their site so families can choose what kinds of non-toxic, all-natural products they would like to use and get them in a bundle. Families can choose all kinds of products from food to hygiene necessities and cleaning supplies. They are thinking of expanding their business into five domestic markets: Phoenix, Dallas, Chicago, New York, and Atlanta. Their primary goal of business is to maximize economic profits, although they want to do business honestly.
a.) The
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You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies.
Issue
Rival A
Rival B
Rival C
Capacity Utilization
At full capacity
Moderate
Very low
Goodwill considerations
Very concerned
Moderately concerned
Not concerned
Production facilities
Small & inefficient plant
Medium & efficient plant
Large & very efficient plant
Previous bidding history
Incremental cost plus 35-50%
Full cost plus 8-12 %
Full cost plus 10-15%
Cost structure
Incremental cost exceeds yours by about 10 %
Similar cost structure as yours
Incremental cost 20% lower but full costs are similar to yours
Aesthetic factors
Does not like winter jobs or dirty jobs
Does not like messy or inconvenient jobs
Likes projects where it can shows its creativity
Political factors
Decision maker is a relative of the buyer
Decision maker is seeking a new job
Decision maker is looking for a promotion
a). “The incremental costs of the contract are all those costs, expressed in present value terms, that are incurred as a result of winning and completing the contract.” (Douglas, 2012). The price that I would bid if I must have the project is 428,800.
Incremental cost 268,000.00 * (1+.60) = 428,800.00
b). “If the firm's objective is to maximize its net present worth, the optimal bid price will be the price that maximizes the expected present value of contribution
In conclusion, the returns of the all ordinaries index are not very good during the study period. Furthermore, it seems unlikely that the variations of the time index will have any impact on the change of the all ordinaries index. Nevertheless, the prediction of the all ordinaries index are almost not influencing by the variation of the time
a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid up on input prices for the companies in the industry of remodeling. “When a market is characterized by a large number of small producers, the demand curve facing the manager of each individual firm is horizontal at the price determined by the
1. A fast-food restaurant asks customers to evaluate the drive-thru service as good, average, or poor. What level of data measurement is this classification?
You work in marketing for a company that produces work boots. Quality control has sent you a memo detailing the length of time before the boots wear out under heavy use. They find that the boots wear out in an average of 208 days, but the exact amount of time varies, following a normal distribution with a standard
For the first time since the Industrial Revolution, less than _____ percent of the American workforce was employed by manufacturing.
Job descriptions are a vital part of recruiting and managing employees. These written summaries of jobs ensure that applicants and current employees have clear understanding of their roles and what is expected of them in order to be held accountable. Despite the various job descriptions and posts for new hire, it is imperative that job descriptions be thoroughly written because it will help employees understand the major areas of their job or position and also help attract the right candidates for the job. In this essay, I will be writing on the components of job description with emphasis on the role of Operations Manager with careful analysis of the important facts about the job with respect to the tasks, tools and technology, knowledge,
Select an existing production organization. Analyze the organization’s current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting method, statistical technique, facility location, work design, project life cycle, and project management. Note: You will need this information in order to complete this and subsequent assignments.
The company that I will be writing about is called Aleve. Aleve is an OTC drug that is made from the company known as Bayer. This medication is known for being a pain reliever that provides relief for a variety of condition. Just like any other company, Aleve has to be able to create a marketing plan. This plan has to be very strategic in order to gain customers and investors. The company must choose a market that they want to target. By doing this they must find out information about their competitors. This information will help them to come up with a marketing strategy that will tell customers why they should
Once we get the contract back from the retailers we need to sit down with Nancy, our Human Resources, and get started with the hiring. For hiring the new employees that we will need for the addition work, the steps of advertising for the positions, scheduling interviews, and meeting to choose the correct candidates must be taken. Let us start off by writing the job descriptions down so we have clear definitions of what each job will entail.
Advantages of Doing Business in China: As mentioned previously, there are many organizations around the whole world that perform their business in China. They do business in China due to the fact that China has a reliable market. It is also expected that the organizations doing business in China will continue to grow. Some advantages of doing business in China are that it is a major emerging market around the world. Also there are a lot of opportunities for organizations to invest in China for a longer period of time due to expanding of technology and
The improvement activities that you were doing before worked, as you began to reach 97% OTD. You’re efforts to refocus on those tasks now is very much appreciated. Below I have commented on each of your bullet points and remember my comments refer to all employees that enter orders not just CSR’s.
3. Why did the New Mexico Department of Transportation start offering passengers free public 4G WiMAX Internet to make public transportation more attractive to commuters?
Note Exhibit 3, Year 2 cash flows, the “add total change in cash” is an incorrect number. It should be $1,371,350.
Write a three to six (3-6) page paper in which you provide the following information below.
Tinker & Tailor’s Home Security Service: “The limited partnership form of business organization was primarily created to address one of the worst shortcomings of the traditional partnership form: unlimited personal liability for financial obligations incurred by the partnership” (Seaquist, 2012). Those involved in a limited partnership are in a unique situation in that they are only legally responsible for their investment in the partnership