Economics Graduate Level- Business Proposal 2

Important information

Included?

Comments

Identification of market structure

X|_| |_|

Yes No

Market structure was defined as Oligopoly. I agree with that assessment.

Assumptions regarding market structure and elasticity

X|_| |_|

Yes No

I was not sure whether I agreed with the assessment; however I must be incorrect as I saw the instructor supported your position. From my stand point, it would appear that, given the market share, the main strategy would need to be pricing-aware and therefor elasticity would be something to consider.

To what degree do you agree or disagree with the items below?

SD=Strongly Disagree

D=Disagree

N=Neutral

A=Agree

SA=Strongly Agree

Justification included?

Comments

Chosen method to increase revenue

|_| |_| |_| X|_| |_|

X|_| |_|

Yes No

I picked up on the approach noted in the paper, with the customer service and convenience being big parts.

Chosen methods to determine profit-maximizing quantity

|_| |_| X|_| |_| |_|

SD D N A SA

X|_| |_|

Yes No

More hypothetical data, perhaps in a table, would be useful to show at what point, or combination of variables, the business would be profitable.

Use of concepts of marginal cost and marginal revenue to maximize profit

|_| |_| |_| |_| X|_|

SD D N A SA

X|_| |_|

Yes No

You did a real good job showing your understanding of the concepts with all the equations. The above point could put this in a more understandable format.

Suggested mix of pricing and nonpricing strategies

|_| |_| |_| |_| X|_|

SD D N A SA

X|_| |_|

Yes No

You did a good job listing a couple of different approaches to take, from pricing (with membership) to quality of customer service and convenience.

Selected barrier to entry

|_| |_| X|_| |_| |_|

SD D N A SA

X|_| |_|

Yes No

You could take a strong position on a barrier. For me, it would be economy of scale/pricing. Otherwise, more details on branding and tea quality would be needed.

Chosen methods to increase product differentiation

|_| |_| |_| X|_| |_|

SD D N A SA

X|_| |_|

Yes No

As noted above, some kind of differentiation is needed. It seems like the approach is company branding, perhaps some more details about the brand.

Chosen methods to minimize costs for the product

|_| |_| |_| X|_| |_|

SD D N A SA

X|_| |_|

Yes No

I might give some details regarding production locations and economy of scale.