Signature Assignment: Challenges of Expansion to a Foreign Location

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Identify the market structure your chosen firm operates in, analyze your chosen firm's current market share, and identify the firm's local/global competitors. Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm's future in the market. Hints: Be sure you review the barriers to entry discussed in the course text.  You might consider presenting the data graphically.

You mentioned that Pepsi’s profits are “extremely high.” However, looking at Pepsi’s Income Statement indicates that it’s net profit margin is in the range of 7-to-10%. That is not “extremely high.” Be sure to validate your comments before you make them. There is a lot of information online about Pepsi’s profitability such as https://www.stock-analysis-on.net/NASDAQ/Company/PepsiCo-Inc/Ratios/Profitability Be sure to check first before making a broad comment.

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Identified/ explained trends in current macroeconomic indicators for last three years including:

· Current stage of the business cycle.

· Real gross domestic product (GDP).

· Inflation as measured by the consumer price index (CPI).

· Unemployment rate.

· Federal funds rate.

· Current rate for borrowing funds such as the so-called “prime rate.”

The expansion phase of the business cycle did not start in 2014 as you stated; it started in 2009. Be sure to check the information before making statements.

You wrote, “, the economy is growing at a healthy rate of two to three prices indicated by the rise in the investment prices. The Gross Domestic Price (GDP) has only improved by 2.2% over the last three years.” We measure the growth of the economy by looking at GDP growth which is slow. However, you commented that is is growing at a healthy rate of “two or three prices.” I’m not sure what you mean by prices but it does not make sense to me.

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Evaluated trends in demand over last three years and explained their impact on the industry and the firm. Included quarterly (last two quarters) and annual sales (last three years) figures for the product student’s firm sells. Created business strategies by analyzing information and data related to the demand for and supply of firm’s product(s) to support student’s recommendation for the firm’s actions.  Included a graphical representation of the data used in your analysis.

You included a graphical representation of the data used in your analysis but you did not provide the quarterly and annual sales numbers that were required.

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Examined available, current information, such as pricing and the availability of substitutes, and explained the price elasticity of demand for firm’s product can be determined. Assessed how price elasticity of demand affects the firm’s pricing decisions and revenue growth.

You did not identify the company’s products as either elastic or inelastic. This is important since lowering the price has different results if the product is elastic than if it is inelastic. Lowering the price of an inelastic product will result in reduced revenue while lowering the price of an elastic product will result in increased revenue.

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Applied how the concepts of variable and fixed costs affect the firm's output decisions. Analyzed how different costs (labor, R&D, raw materials) affect the firm’s level of output.

You did not fully discuss how the concepts of variable and fixed costs affect the firm's output decisions.

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Based on the data gathered and analysis performed student’s conclusion included:

· Business strategies, including price and non-price strategies, based on market structure to ensure the market share and potential market expansions. Also included exploration of global opportunities for student’s business in a dynamic business environment and provided recommendations.

· A recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented.

· Proposal for how the firm’s position within the market and among its competitors will allow it to take your recommended action.

· Recommended strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government policies.

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Cited a minimum of three peer-reviewed references and a minimum of two government economic data sources/references.

The analysis is a minimum of 1,050 words in length.

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Available 7 points

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4 ./7

Writing Guidelines

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The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.

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Intellectual property is recognized with in-text citations and a reference page.

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Paragraph and sentence transitions are logical, and maintain the flow throughout the paper.

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Sentences are complete, clear, and concise.

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Rules of grammar and usage are followed including spelling and punctuation.

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Available 3 points

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3 ./3