Managerial Economics
Purpose
The purpose of this assignment is to apply information learned about supply, demand and consumer behavior to your chosen company and determine how the company can use this information to increase revenue and profitability.
Consumer behavior can be affected by a change in tastes for goods or because of some ethical scandal that makes consumers not want to buy from a company.
There are many factors that impact supply and demand for a good or service and it’s important to understand how these factors impact a business and its goal of maximizing revenue and profit.
Instructions
Using the company you have chosen (YOU HAVE CHOSEN Apple Inc.) for analysis in this class, conduct research to determine the following:
Who is the consumer of this company’s good or service?
What factors, including ethical factors, determine consumer demand for this good or service?
Based on your research, is demand for this company’s good or service increasing, decreasing or staying the same?
What constraints are there in supply of this good or service that could impact revenue growth and profitability?
Based on your research, what strategies would work for your company to maximize revenue and profits?
This information should be formatted as a Memo to an executive who wants this information in order to develop plans for the upcoming quarter. Once you have identified the information, you should give your view on what strategies the company should take to improve performance.
Your memo should be 2 ½ to 3 pages typed (font size 12, double spaced, APA standard margins), adhering to proper grammar, writing structure topic organization, clarity of thought, and use of supplemental content. Here is a link to the format for a standard memo. You must adhere to APA citation guidelines.