All of your hard work and relentless efforts have paid off! Your company is doing better than expected. In fact, you will be meeting next month with and presenting to a group of investors to secure an infusion of $100 million in new capital to significantly expand your operations. To prepare for your presentation, you need to conduct a thorough and honest evaluation of your company.
Write a 6-8 page paper in which you address the following:
- Describe your company and its major products or services from economic perspectives using terms and concepts learned in this course. Include such aspects as:
- Market sector and industry
- Market structure—pure competition, monopoly, monopsony, or oligopoly
- Major products and/or services
- Elasticity and the factors that affect their supply and demand
- Other economic characteristics, such as utility, type of good, etc.
- Noneconomic forces that impact sales and profitability, such as weather, business cycles, technology releases, or regulations.
- Discuss the current and potential economic drivers and risks that your company faces.
- Macroeconomic drivers and risks—Using GUIDES, what elements post the greatest external issues for your company and its industry?
- Microeconomic drivers and risks—What internal risks does your company face? (Examples include, but are not limited to: personnel or managerial issues, supply or distribution constraints, production constraints, creating/sustaining competitive advantages (patents, trademarks, formulations, proprietary processes, etc.), technology, etc.).
- What can your company do, if anything, to influence or better respond to these drivers and risks?
- Analyze your industry using Porter’s “Five Forces” framework.
- Classify each force as weak, strong, or neutral.
- Why did you choose that classification?
- How can your company best leverage this information?
- Present information on pricing practices—basic and discriminatory.
- What are the more common pricing practices utilized by your company and/or within its industry?
- What types of discrimination options are not being used, but could be implemented?
- Evaluate your company’s short-term and long-term economic outlooks.
a. Given the above investigation into your company and its industry, what type of outlook (favorable/unfavorable) can your investors expect over the short-term (5-7 years) horizon? b. What type of outlook (favorable/unfavorable) can investors expect over the long-term (8+ years) horizon?
Note: Refer to the course content and use online resources to gather both quantitative and qualitative information concerning your company.