Question

Highlight the aspects that are more relevant in terms of the modeling of the firm, production, input markets (capital labor), or drivers of growth for a grocery store.

Answer 1

Modeling a Firm-Factors affecting Growth
There are various aspects affecting the modeling of a firm. Estimating the consumers, scope of the product, finding resources, analyzing pre-similar models, developing value-proposition, demand generating strategies etc. are the primary and important factors which influence the aspects of modeling a firm. Depending upon the environment and the product which is expected to produce, models demand certain changes on the planning and establishment. The model should observe the productive ability of the inputs and suitable level of output etc. to help the firm functions well.
The level of production should be fixed according to the availability of resources and the level of demand for the good produced. Efficient methods of production should be attained to get maximum revenue from per unit production and supply. Cost effective analysis and clarity about the market helps the firms to produce at an optimum level to earn maximum profit from the market.
Determining the level of input used especially the labor and capital should be according the productivity of the factor inputs and the level of output the firm plans to produce. An inefficient and varying use of inputs could affect the productivity if the factors increasing per unit cost. The type of the good can also helps determining the factor inputs to be used. Effective utilization of factors can increase productivity helping the firm to earn better.
Growth of a grocery store is affected by various factors. The level of permanent customers, the scope in the region, competition, price etc can affect the growth and functioning of a grocery store. The customers of the store being common people, the prices and quality can affect changes in the demand for the goods sold. Analyzing the taste of the population, their ability to purchase can all affects the drivers of growth of a grocery store.

Better quality products with low prices attract more customers. The commodity with high demand, the scope of other stores, variety in the category of goods all act as driving factors to the growth of a grocery store.