Description
The final project provides you with an opportunity to use work from previous papers and discussion forums in formulating your paper, but it will also require additional research regarding a specific business. You are required to adhere to APA (American Psychological Association) style guidelines and to cite your sources. Do not copy tables or material and present it as your own. A feature of good academic writing is building on the work of others in presenting a new approach to a business issue.
A major firm in the United States is contemplating rolling out a new product to aid its ailing business and has come to you for help. The CEO isn’t sure if the investment is justified by sound economic principles or the degree to which she would support the introduction of the new product, its successful launch, and its subsequent growth. As part of her due diligence, she has come to you and asked you to prepare a report on the degree to which the new product is based on solid economic principles.
Please choose a company and a new product for the company to launch. The new product could be a car or truck, a household product such as shampoo or toothpaste, a brand of yogurt, and so forth. Use Websites such as www.yahoofinance.com, databases such as EBSCOhost and ProQuest (available through the myEdison portal in the My Resources block), and online journals from the New Jersey State Library to conduct your research. (In order to access resources from the New Jersey State Library, you must first sign up for a free library card.)
The CEO has provided you with the outline below for the report.
Introduction: Provide a brief focus statement about the company and the product you have chosen. Include family of products, if applicable, and any other data about the company that you think will be helpful in providing context for your report.
Interaction of resources between households, business, and government: Provide a brief synopsis of how the product will address perceived [household] needs, present business climate and performance, and government regulations, if any.
Scarcity, market mechanisms, price elasticity, gross domestic product (GDP), and foreign exchange: How do scarcity, market mechanisms, price elasticity, GDP, and foreign exchange affect the launch and subsequent growth of this product?
Trade and productivity: What is the effect of your new product or product line on productivity, trade, and economic growth?
Unemployment, inflation, and the business cycle: How does unemployment, inflation, and the business cycle influence the potential for success of your new product or product line?
Classical and Keynesian economics and aggregate supply and demand: How do classical and Keynesian economics, as well as aggregate supply, influence the introduction of your new product or product line?
Conclusions and outcomes: Summarize the main points of your paper and provide your conclusions to the CEO based on your research.
GUIDELINES
For this final project, thoroughly discuss the topics described above and, when possible, provide specific examples or recommendations.
Your paper should:
Be 14 to 20 double-spaced pages in length.
Include a cover sheet and a table of contents.
Follow academic research approaches and APA citation format, including in-text citations and a References list.
Have at least 10 references from academic books, journal articles, and/or credible online sources.
Be well-developed and convey your understanding of the readings and concepts.
Be organized, coherent, and unified.
Be free of spelling, structure, and grammatical errors.
WRITING RESOURCES
The following links provide online writing aids to help you with your paper assignments.
OWL (Online Writing Lab) at Purdue University
Writer's Handbook, the Writing Center at the University of Wisconsin–Madison
APA Guidelines
Thomas Edison State University’s Writing Style Guides
Explanation & Answer
Attached.
Economic Principles in Product Launch- Outline
Thesis Statement: The new product is based on solid economic principles and hence its launch
promises profitability for Ford Motors Company.
I. Introduction
II. Interaction of resources between households, business, and government
III. Scarcity, market mechanisms, price elasticity, gross domestic product (GDP), and foreign
exchange
IV. Trade and productivity
V. Unemployment, inflation, and the business cycle
VI. Classical and Keynesian economics and aggregate supply and demand
VII.
Conclusions and outcomes
Running head: ECONOMIC PRINCIPLES
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Economic Principles in Product Launch
Name
Institution
ECONOMIC PRINCIPLES
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Contents
Introduction ..................................................................................................................................... 3
Interaction of Resources between Households, Business, and Government .................................. 3
Scarcity, Market Mechanisms, Price Elasticity, Gross Domestic Product (GDP), and .................. 6
Scarcity ........................................................................................................................................ 6
Market Mechanisms .................................................................................................................... 7
Price Elasticity............................................................................................................................. 7
Gross Domestic Product (GDP) .................................................................................................. 8
Foreign Exchange ........................................................................................................................ 8
Trade and Productivity .................................................................................................................... 9
Productivity ................................................................................................................................. 9
Trade.......................................................................................................................................... 10
Economic Growth ..................................................................................................................... 11
Unemployment, Inflation, and the Business Cycle ....................................................................... 11
Unemployment .......................................................................................................................... 11
Inflation ..................................................................................................................................... 13
Business Cycle .......................................................................................................................... 13
Classical and Keynesian Economics and Aggregate Supply and Demand................................... 14
Classical and Keynesian Economics ......................................................................................... 14
Aggregate Demand and Aggregate Supply ............................................................................... 15
Conclusions and Outcomes ........................................................................................................... 16
References ..................................................................................................................................... 19
ECONOMIC PRINCIPLES
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Economic Principles in Product Launch
Introduction
In November 2019, Ford Motors Company introduced a new electric car and the first
ever all-electric sport-utility vehicle (SUV). The introduction of this product presents a new
direction in the use of technology for the American-based vehicle manufacturer and the new
Mustang Mach-E 2021 presents a new product not only for the company but for vehicle
manufacturers. This paper will focus on the product to analyze whether the introduction follows
solid economic principles. Therefore, a major assumption to be made here is that the vehicle has
not yet been introduced for commercial use and hence is still in its inception stage. The analysis
will aid in making decisions about the product’s viability in the market and decisions whether or
not to introduce it to the public.
Ford Motors Company is one of the leading vehicle manufacturers in United States. The
multinational company headquartered in Dearborn, Michigan, was founded by Henry Ford in
1903 and is the second-largest manufacturer in the US after General Motors (Rogers, 2016). The
company and its founder are mostly lauded for inventing and popularizing large-scale vehicle
manufacturing through assembly lines (Rogers, 2016). From an economics perspective, the
company’s legacy is thus in the use of economies of scale in motor-vehicle production in the
assembly lines. Ford’s background shows a long history of motor vehicle production and
competitive performance in the international motor-vehicle production scene.
Interaction of Resources between Households, Business, and Government
The launch of an electric SUV for Ford presents interactions between the product and
several household needs. First, the basic need for cars in the household is in the provision of safe
and affordable access to transportation for family members. The SUV has always been
ECONOMIC PRINCIPLES
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highlighted as a superior choice for family cars due to space for occupants and luggage.
Therefore, the new vehicle addresses this need by providing a spacious design of a vehicle able
to address the travel needs of a household. According to Wayland (2019), the new SUV comes
with plenty of leg-room, storage space behind the rear seats, and a luggage space in the bonnet.
This space thus addresses the traveling needs of families that integrate both comfort of the
occupants and luggage space as well. The first household need addressed by the vehicle is thus
the travel comfort and space needs of family members.
Secondly, the product capitalizes on government incentives for plug-in electric vehicles
and hence saves costs for the family on both car ownership and fuel costs. The government of the
U.S has provided tax credits for electric vehicles. In the Energy Improvement and Extension Act
of 2008 the government provided tax credits for new electric cars and later on reauthorized tax
credits for converted electric vehicles (Trutnevyte, 2016). These tax credits means that buyers of
electric vehicles can get tax reliefs and spend less than the actual cost of the cars in their
purchase. The household needs of the ownership of a car are thus taken care by introducing an
electric SUV by Ford. Fuel costs are also significantly lowered and hence the household needs
for fuel are clearly addressed in the presentation of a high-performance SUV.
Additionally, the SUV presents competitive advantage in the present car industry
business climate. The industry is highly competitive with many companies presenting innovative
designs. One of the major points of competition for the car industry is the efficiency of vehicles
in fuel ...
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