Managing during recession.
Coursework report (1,500 Words – headings/subheadings format including graphs to explain economic theories applied) analyzing requirements below from an Economic perspective using theories covered within the course (attached slides covered during this module):
Analysis needs to revolve around a selected product aimed to be sold with a domestic market (selected country) and another global market in which it is exported (another selected country), the analysis needs to be done with respect to the current economy as it stands describing their current economic state.
Ensure to specify a certain brand of product that is being marketed.
Example: a brand of TV not the television market as a whole.
Imagine that you are part of a marketing team of the product (VARIABLE) at company (VARIABLE), which aims at selling this product in the domestic as well as global markets. You are preparing a strategy for this product in the first half of 2018.
Define the properties of this product and the target markets by using MICRO AND MACROECONOMIC CONCEPTS discussed in lectures (Please see attached)
Please address the following issues:
A) What type of good is product (VARIABLE)? What is the price elasticity and income elasticity of your product? What is the cross-price elasticity with respect to complementary and substitute products?
B) What are the alternative scenarios with regards to the costs of production (marginal costs like labour costs, raw materials, energy)? Consider the macroeconomic expectations for the first half of 2018 and difference scenarios about the macroeconomic developments and the course of the recession.
C) What is the market structure? What are the possible strategies of your competitors? What will be your strategy with respect to your competitors?
D) Which market segments and different pricing strategies can you imagine?
E) Think of the developments in demand in different markets domestically and globally. How will demand develop in these markets? What is the effect of the recession on the demand for your product? How could government policies in different markets affect the demand for your product?
F) Prepare different scenarios about the developments in the currency markets and their effect on the price competitiveness of your company.
Focus:
Please conduct analysis bearing in mind below economic theories:
– Demand/Supply
– Elasticity
– Cost of Production
– Revenue and profit
– Market structures and profit under them
– Macroeconomic environment of business
