Operation Decision Essay

2081 Words Jun 15th, 2014 9 Pages
Assignment 2: Operations Decision

04/23/14
Joel Chagadama
Dr. Bernadette West
Eco 550

The purpose of this paper is to present the low-calorie microwaveable foods’ in support of the company’s long run operations decision plans. In the paper, I will examining the results of the new supply curve as it reflects to the current market structure and then take into account the expected changes to the selling environment and factors that may have caused the change. I will also examine chief short-run and long-run production and cost functions as applied to this new cost data to determine if there are conditions under which operations could be discontinued. Given the change in the market structure they we be a need to review the
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According to Routledge, a good strategy is crucial in defining the effectiveness of the market structure in which the firm functions (2008). Bragg also reiterated by stating that a good market strategy will mostly emphasis on the products available for sale, the total number of companies participating, trends in pricing and important techniques of product promotion (2012).
2. Changes to market structure and reasons that have caused changes from the market structure specified in Assignment 1.
Recent market surveys confirmed changes to the market structure from a perfectly competitive market to an imperfectly market structure. Imperfectly competitive market structures are markets where firms have the power to influence or determine price. A physical count of competing firms in the market revealed that they are now only fifteen companies directly compete for the market share of the low-calorie microwavable foods, of the fifteen on three companies control seventy five percent of the market share. Based on sells, our company is ranked as number two with a twenty-seven percent of sales of low-calorie microwavable dinners. The percentage market share represent the market concentration ratio. Beck, Demirguc-Kunt, and Levine (2003) defined concentration ratio as a measures of the collective market share the top number firms possesses in an industry.
Given the above