Business Finance
ECO 550- Operation Decision

Question Description

INSTRUCTIONAL MATERIALS

Required Resources

McGuigan, J. R., Moyer, R. C., & Harris, F. H. deB. (2014). Managerial economics: applications, strategies and tactics (13th ed.). Stamford, CT: Cengage Learning.

Supplemental Resources

Board of Governors of the Federal Reserve System. (2013). General format. Retrieved from http://www.federalreserve.gov

excelcentral.com. Learn Excel 2010 Essential Skills with the Smart Method. (2013). Retrieved from http://www.excelcentral.com/?gclid=CK3zisSC1rkCFcE7OgodLlEA_g

fundamentalfinanace.com. (2013). Excel. Retrieved from http://www.fundamentalfinance.com/excel/

Wall Street Journal (2013). General format. Retrieved from http://online.wsj.com


Assignment 2: Operations Decision
Due Week 6 and worth 300 points

Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.

Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).

Write an eight (8) page paper in which you:

  1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own “optimal” price.
  2. Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
  3. Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

TC = 160,000,000 + 100Q + 0.0063212Q2
VC = 100Q + 0.0063212Q2
MC= 100 + 0.0126424Q

  1. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)
  2. Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.

(Hints:

  • In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm’s Total Revenue function, then find your Marginal Revenue (MR) function.
  • Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.)
  1. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

(Hints:

  • Calculate profit in the short run by using the price and output levels you generated in part 5. Optional: You may want to compare this to what profit would have been in Assignment 1 using the cost function provided here.
  • Calculate profit in the long run by using the output level you generated in part 5 and cost data in part 3 and assuming that the selling environment will likely be very competitive. Determine why this would be a valid assumption.)
  1. Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Outline, in brief, a plan to implement your recommendations.
  2. Use at least six (6) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Analyze short-run and long-run production and cost functions.
  • Apply macroeconomic concepts to changes in global and national economies and how they affect economic growth, inflation, interest rates, and wage rates.
  • Evaluate the profit-maximizing price and output level for given operating costs for monopolies and firms in competitive industries.
  • Use technology and information resources to research issues in managerial economics and globalization.
  • Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

Click here to view the grading rubric.

Points: 300

Assignment 2: Operations Decision

Criteria

Unacceptable
Below 70% F

Fair
70-79% C

Proficient
80-89% B

Exemplary
90-100% A

1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations.
Weight: 10%

Did not submit or incompletely outlined a plan that will assess the effectiveness of the market structure for the company’s operations.

Partially outlined a plan that will assess the effectiveness of the market structure for the company’s operations.

Satisfactorily outlined a plan that will assess the effectiveness of the market structure for the company’s operations.

Thoroughly outlined a plan that will assess the effectiveness of the market structure for the company’s operations.

2. Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
Weight: 10%

Did not submit or incompletely determined two (2) likely factors that might have caused the change, given that business operations have changed from the market structure specified in the original scenario in Assignment 1. Did not submit or incompletely predicted the primary manner in which this change would likely impact business operations in the new market environment.

Partially determined two (2) likely factors that might have caused the change, given that business operations have changed from the market structure specified in the original scenario in Assignment 1. Partially predicted the primary manner in which this change would likely impact business operations in the new market environment.

Satisfactorily determined two (2) likely factors that might have caused the change, given that business operations have changed from the market structure specified in the original scenario in Assignment 1. Satisfactorily predicted the primary manner in which this change would likely impact business operations in the new market environment.

Thoroughly determined two (2) likely factors that might have caused the change, given that business operations have changed from the market structure specified in the original scenario in Assignment 1. Thoroughly predicted the primary manner in which this change would likely impact business operations in the new market environment.

3. Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.
Weight: 10%

Did not submit or incompletely analyzed the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the provided cost functions. Did not submit or incompletely suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

Partially analyzed the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the provided cost functions. Partially suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

Satisfactorily analyzed the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the provided cost functions. Satisfactorily suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

Thoroughly analyzed the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the provided cost functions. Thoroughly suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response.
Weight: 15%

Did not submit or incompletely determined the possible circumstances under which the company should discontinue operations. Did not submit or incompletely suggested key actions that management should take in order to confront these circumstances. Did not submit or incompletely provided a rationale for your response.

Partially determined the possible circumstances under which the company should discontinue operations. Partially suggested key actions that management should take in order to confront these circumstances. Partially provided a rationale for your response.

Satisfactorily determined the possible circumstances under which the company should discontinue operations. Satisfactorily suggested key actions that management should take in order to confront these circumstances. Satisfactorily provided a rationale for your response.

Thoroughly determined the possible circumstances under which the company should discontinue operations. Thoroughly suggested key actions that management should take in order to confront these circumstances. Thoroughly provided a rationale for your response.

5. Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.
Weight: 10%

Did not submit or incompletely suggested one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Did not submit or incompletely provided a rationale for your suggestion.

Partially suggested one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Partially provided a rationale for your suggestion.

Satisfactorily suggested one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Satisfactorily provided a rationale for your suggestion.

Thoroughly suggested one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Thoroughly provided a rationale for your suggestion.

6. Outline a plan, based on the information provided in the scenario, that the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.
Weight: 10%

Did not submit or incompletely outlined a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Did not submit or incompletely considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Partially outlined a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Partially considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Satisfactorily outlined a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Satisfactorily considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Thoroughly outlined a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Thoroughly considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

7. Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Outline, in brief, a plan to implement your recommendations.
Weight: 10%

Did not submit or incompletely recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Did not submit or incompletely outlined, in brief, a plan to implement your recommendations.

Partially recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Partially outlined, in brief, a plan to implement your recommendations.

Satisfactorily recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Satisfactorily outlined, in brief, a plan to implement your recommendations.

Thoroughly recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Thoroughly outlined, in brief, a plan to implement your recommendations.

8. 5 references
Weight: 5%

No references provided

Does not meet the required number of references; some or all references poor quality choices.

Meets number of required references; all references high quality choices.

Exceeds number of required references; all references high quality choices.

9. Writing Mechanics, Grammar, and Formatting
Weight: 5%

Serious and persistent errors in grammar, spelling, punctuation, or formatting.

Partially free of errors in grammar, spelling, punctuation, or formatting.

Mostly free of errors in grammar, spelling, punctuation, or formatting.

Error free or almost error free grammar, spelling, punctuation, or formatting.

10. Appropriate use of APA in-text citations and reference section
Weight: 5%

Lack of in-text citations and / or lack of reference section.

In-text citations and references are provided, but they are only partially formatted correctly in APA style.

In-text citations and references are error free or almost error free and consistently formatted correctly in APA style.

11. Information Literacy / Integration of Sources
Weight: 5%

Serious errors in the integration of sources, such as intentional or accidental plagiarism, or failure to use in-text citations.

Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing.

Sources are consistently integrated using effective techniques of quoting, paraphrasing, and summarizing.

12. Clarity and Coherence of Writing
Weight: 5%

Information is confusing to the reader and fails to include reasons and evidence that logically support ideas.

Information is partially clear with minimal reasons and evidence that logically support ideas.



Final Answer

Attached.

RUNNING HEAD: PROFESSIONAL DEVELOPMENT PROGRAM PROPOSAL

Assignment 2: Professional Development Program Proposal

1

PROFESSIONAL DEVELOPMENT PROGRAM PROPOSAL
EI and Motivation
Emotional building blocks are the basic emotional skills that a person holds which make
his or her EI capacity. These EI building blocks are very crucial to a manager in enhancing job
satisfaction and employee performance. The building blocks of EI that would impact the
management's ability to do so are self-awareness, self-management, relationship management,
and social awareness. Self-awareness is the ability to identify one's emotions and apprehend
limits as well as strengths. Therefore, becoming self-aware entails knowing oneself. It means
having the ability to recognize the emotions that one experiences, knowing the feelings linked
with emotions, and discerning what you imagine and do as an outcome.
Self-management is among the building blocks of EI. It is one's ability to use his or her
self-awareness to actively decide what they do and say. It is the capacity to experience emotions,
efficiently read them before responding to them. It is guaranteeing that one is not doing illogical
things to sabotage their success.
Social awareness is the ability to perceive and respond to the wants of other people.
Being aware of social concepts and situations implies that one thoughtfully takes into
consideration what other individuals want, and also plans to interact with them in a tone that is
designed to comply with that need.
Relationship management is the ability to influence and inspire other people and sort out
the conflicts that arise. It enables a person to connect with others in such a way that assist them
to feel supported and understood. Relationship management is a crucial building block of EI
which enables a manager to effectively handle own change or lead change.

2

PROFESSIONAL DEVELOPMENT PROGRAM PROPOSAL
Negative and positive reinforcement are common, usually complementary tools
employed by managers to motivate the workforce. A positive reinforcement is an incentive or a
reward that is given to an employee for accomplishing defined standards, (Bernier, Simpson, &
Chad, 2012). It includes written or verbal praising, formal or informal awards and pay structures
that offer promotional activities, raises, bonuses, and commissions. This tool can be used when
the employees perform their tasks excellently. This can also be used when tasks are delegated to
a group of employees and the management seeks to promote competition among them. For
instance, Benter is an employee at Jolly Inc. She has to finish the weekly report. Her latest report
exhibited a great insight and provided information that will assist her manager John to make
some essential changes. John would therefore first thank her for the report and then tell her that
her work is fantastic. He would tell her that he really appreciates the insight that she offered in
the report.
A negative reinforcement, on the other hand, is when something undesired is removed
due to remarkable behavior by the employees. This results in a more pleasant setting for the
employees. For example, Justin is a manager of a retail store that holds 15 employees. These
employees are expected to attend a meeting each Saturday. Justin usually lectures them on how
to effectively close a deal. However, Justin will use their negative attitude towards the Saturday
meeting as a negative reinforcement to boost sales. He will tell the employees that they can skip
the Saturday meeting if the sales increase by 5% the next month.
EI and Social Skills and Decision Making
The core concepts of emotional intelligence are self-awareness, self-regulation, selfmotivation, and empathy. Leaders who are self-aware know how they feel and how their actions

3

PROFESSIONAL DEVELOPMENT PROGRAM PROPOSAL
and emotions can affect the individuals around them, (Maloş, 2011). A self-aware management
team has a clear image of the organization's strengths and weaknesses. It also means that the
management team behaves with humility.
Self-regulation is another core concept of emotional intelligence. Managers who regulate
themselves effectively seldom verbally attack other individuals, make emotional or rushed
decisions, compromise people's values or stereotype them, (Ovans, 2015). A self-regulated
management team, therefore, stays in control when making decisions.
It is also crucial for the management team to have self-motivation which involves
working for reasons that go beyond status and money. It is the competence to pursue a goal with
persistence and energy. This also adds to the social skills in that the management team will have
a strong drive to gain optimism even when faced with failure. Yet, self-motivation allows for
organizational commitment.
For a management team, having empathy is crucial to successfully manage a team.
Managers with empathy, hence, have the ability to put themselves in other people's shoes. They
help develop the employees on their team and also...

ProfAlston (7951)
UC Berkeley

Anonymous
The tutor managed to follow the requirements for my assignment and helped me understand the concepts on it.

Anonymous
The tutor was knowledgeable, will be using the service again.

Anonymous
Awesome quality of the tutor. They were helpful and accommodating given my needs.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors