JWI 515: Managerial Economics
Academic Submissions and Evaluation
Assignment 2: Executive Memo – Price Discrimination (Weight: 10%)
Due by Sunday, midnight of Week 7
Your Assignment
It’s time to crunch some numbers! Your boss has just given you an important, high priority
assignment. The company’s core business product has shown steadily shrinking profitability and
you’ve been asked to address the problem by coming up with at least one new pricing
technique. Your boss and the Regional VP of Finance will meet with you at the end of the month
to hear your proposal.
Prior to the meeting, your boss would like to see a brief Memo that outlines your proposal and
the impact you expect it to have on units sold and profits. The RVP of Finance is new to the
company, so you will also need to include a section that contains a brief description of the
product and its history.
Instructions
Develop a 2 to 3 page Executive Memo for your boss. Use the outline below to structure
your Memo:
1. Describe the company’s product or service, using relevant economic terminology.
Questions to address include, but are not limited to:
•
What is the product or service? What Utility or benefit does it provide to the
consumer?
•
What is your company’s history with this product or service?
•
What does the competition in the market look like for this product or service?
•
What actions has your company taken to remain competitive?
2. Provide one or more specific proposals for price discrimination:
•
•
Which Price Discrimination technique(s) will you use?
In order for your proposal to generate more profits, will you recommend Mark-up
or Margin pricing? Why?
•
What is the current price? What will be the new price?
3. Explain how implementing your proposal is expected to impact consumer demand:
•
How will your proposal impact sales in the first three months?
•
•
How will your proposal impact sales within eighteen months?
What would increased sales enable the company to do differently?
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied,
further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject
to change based on the needs of the class.
JWI 515 – Assignment 2 (1184)
Page 1 of 4
JWI 515: Managerial Economics
Academic Submissions and Evaluation
Professional Formatting Requirements
Your assignment should follow these formatting requirements:
• Typed, double-spaced, professional font (size 10-12), include headings and subheadings, with
one-inch margins on all sides
• In place of a Cover page, provide the following heading on Page One of your Memo:
Ø
Ø
Ø
Ø
TO: Insert Professor’s Name
FROM: Insert Your Name
DATE: Insert Assignment’s Due Date
RE: Managerial Economics 515, Assignment 2
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied,
further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject
to change based on the needs of the class.
JWI 515 – Assignment 2 (1184)
Page 2 of 4
JWI 515: Managerial Economics
Academic Submissions and Evaluation
RUBRIC: Assignment 2
CRITERIA
Unsatisfactory
Low Pass
Pass
High Pass
1. Describe
the product or
service using
appropriate
economic
terminology.
Product or
service is not
described using
appropriate
economic
terminology,
and/or the
product or service
history and the
competition are
not described.
Product or service
is partially
described using
appropriate
economic
terminology. The
product or service
history and the
competition are
also partially
described.
Product or service
is sufficiently
described using
appropriate
economic
terminology. The
product or service
history and the
competition are
also sufficiently
described.
Product or service
is thoroughly
described using
appropriate
economic
terminology. The
product or service
history and the
competition are
also thoroughly
described.
Product or service is
exemplarily described
using appropriate
economic terminology.
The product or service
history and the
competition are also
exemplarily described.
Specific
proposals for
price
discrimination are
not provided,
and/or
recommendations
for markup or
margin pricing
are not
explained. The
student has not
described how
the proposal will
generate profits.
One or two
specific proposals
for price
discrimination are
provided with
partial detail.
Recommendations
for markup or
margin pricing are
partially explained.
The student has
partially described
how the proposal
will generate
profits.
One or two
specific proposals
for price
discrimination are
provided with
sufficient detail.
Recommendations
for markup or
margin pricing are
well explained.
The student has
sufficiently
described how the
proposal will
generate profits.
Two or more
specific proposals
for price
discrimination are
provided with
thorough detail.
Recommendations
for markup or
margin pricing are
thoroughly
explained. The
student has
thoroughly
described how the
proposal will
generate profits.
Two or more specific
proposals for price
discrimination are
provided with exemplary
detail. Recommendations
for markup or margin
pricing are exemplarily
explained. The student
has exemplarily described
how the proposal will
generate profits.
Proposal’s impact
on consumer
demand is not
explained,
including sales
for the first three
months and
within twelve
months. The
student has not
explained what
increased sales
would enable the
company to do
differently.
Proposal’s impact
on consumer
demand is partially
explained,
including sales for
the first three
months and within
twelve months.
The student has
partially explained
what increased
sales would
enable the
company to do
differently.
Proposal’s impact
on consumer
demand is
sufficiently
explained,
including sales for
the first three
months and within
twelve months.
The student has
sufficiently
explained what
increased sales
would enable the
company to do
differently.
Proposal’s impact
on consumer
demand is
thoroughly
explained,
including sales for
the first three
months and within
twelve months.
The student has
thoroughly
explained what
increased sales
would enable the
company to do
differently.
Proposal’s impact on
consumer demand is
exemplarily explained,
including sales for the first
three months and within
twelve months. The
student has exemplarily
explained what increased
sales would enable the
company to do differently.
Weight: 25%
2. Provide
one or more
specific
proposals for
price
discrimination,
its pricing
strategy, and
benefits to
consumers.
Weight: 40%
3. Explain
how
implementing
your proposal
is expected to
impact
consumer
demand.
Weight: 25%
Honors
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied,
further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject
to change based on the needs of the class.
JWI 515 – Assignment 2 (1184)
Page 3 of 4
JWI 515: Managerial Economics
Academic Submissions and Evaluation
CRITERIA
4. Clarity,
logic, writing
mechanics,
and
formatting.
Weight: 10%
Unsatisfactory
Low Pass
Pass
High Pass
Honors
Multiple
mechanical
errors; much of
the text is difficult
to understand or
the text does not
flow; fails to
follow formatting
instructions.
Several
mechanical errors
make parts of the
text difficult for the
reader to
understand; the
text does not flow;
the discussion
fails to justify
conclusions and
assertions.
More than a few
mechanical errors;
text flows but
lacks conciseness
or clarity;
assertions and
conclusions are
generally justified
and explained.
Few mechanical
errors; text flows
and concisely and
clearly expresses
the student’s
position in a
manner that
rationally and
logically develops
the topics.
Few to no mechanical
errors; text flows and
concisely, clearly, and
exemplarily expresses the
student’s position in a
manner that rationally and
logically develops the
topics.
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied,
further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject
to change based on the needs of the class.
JWI 515 – Assignment 2 (1184)
Page 4 of 4
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