final project.

Specifically, the following critical elements must be addressed in your analysis:

1. Opportunity Background and Demand: In this section you will identify an appropriate investment opportunity specific to introducing a new product or service. You will analyze product demand and company revenues specific to this opportunity applying key economic principles to support your reasoning.

a. Background: Provide a brief background on the company, product line, and proposed product. This is where you would lay the foundation for the analysis that follows. What is the significance of this opportunity?

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b. Demand: Evaluate key non-price variables that are expected to support existing or potential demand specific to this opportunity and support your evaluation with sources. For example, this is where you want to include rationale for your selection, such as empirical data for this type of product/service.

2. Production and Resources: In this section you will evaluate variables specific to production and resource costs for the improvement of organizational costs.

a. Costs: Assess what key non-price variables could be expected to affect production costs of the new product. How can these aspects be leveraged to effect efficient methods of production and acquisition of resources to improve upon organizational costs?

b. Constraints: Assess constraints that could affect future production and costs. How can these aspects be leveraged to effect efficient methods of production and acquisition of resources to improve upon organizational costs?

c. Effects: Assess the effect of potential technology changes on production, costs, or competition. How can these aspects be leveraged to effect efficient methods of production and acquisition of resources to improve upon organizational costs?

3. Market Structure: In this section you will evaluate the market structure and influences on firm strategies and profitability.

a. Market Competition: What is the existing and potential market competition? How do these companies affect the firm's strategies and profitability? This is where you would discuss the type of competitors, number of competitors and barriers to entry.

b. Firm Strategies: What are potential price and non-price strategies that the firm might use and what is their relationship to the market structure? For example, discuss a strategy that would support the success of your product. Depending on how the industry is structured you might discuss how it is consistent with the market structure. Perhaps you would address how it is different. Once you address this, you would discuss how your choice provides an advantage in the market.

4. Effects of Regulation and Intervention: In this section you will evaluate the effects of government regulation and interventions that may impact your business. For example, you could discuss how well the market operates and include examples of aspects of market performance specific to your selection. Is it efficient? Does it produce good outcomes? Why or why not?

a. Policies: Identify policies or regulations at the local, state, or national level that could potentially affect your business. What are the potential effects on the firm's goals and performance?

b. Effects: How do these policies or regulations affect your ability to compete and profitably operate in your business? Include examples specific to aspects of market performance to support your conclusions. For example, some forms of regulation, such as patent protection, may afford more profit opportunities while others, such as environmental regulations, may add to your costs.

s. Outlook Recommendations: In this section you will evaluate the outlook for success for this investment opportunity? Is it likely to be profitable? Not profitable?

What factors support this outlook? Apply appropriate principles that support your statements. Remember, your conclusions should be logical and based on your analysis of A-D.

a. Risk: What level of risk is present? This is where you would discuss what uncertainties are present that would negatively impact the firm's outlook based on your analysis. For example, you might discuss the effects of rational and irrational consumer decision making on demand for this product and how it impacts this outlook.

b. Opportunities: What opportunities exist that would appeal to potential investors based on your analysis? What factors support these opportunities?

c. Strategies: What pricing strategies would you recommend to improve firm profitability? For example, should you match what your competitors do? Is the product or service specialized? Would you bundle the product or services? Would you use price discrimination? Explain why you chose this strategy.

d. Implementation: How can these strategies be effectively implemented based on market conditions? This is where you would describe examples of effective implementation specific to different market conditions.

e. Capitalizing on Government Policy: How can the new venture take advantage of government policies to maximize profitability?

Milestones

Milestone One:Topic and Background In/ormation