Question

In: Economics

Apply to real-world business situations. Complete the following questions from the required Economics for Managers textbook:...

Apply to real-world business situations.

Complete the following questions from the required Economics for Managers textbook:

  • Chapter 4: Technical Question 1 (a, b, and c) on page 112 (40 points)

describe how the information given about consumer demand helped managers develop the appropriate strategies to increase profitability and how this information was obtained:

  1. Auto industry executives have begun to focus attention on their 20-, 30-, and 40-year-old customers, known as Generations X and Y, and away from the baby boomer generation. Recognizing that baby boomers are at least 60 years old, managers realize that their future depends on adapting to the tastes of younger generations. The auto industry is now offering more smartphone-driven multimedia systems and is considering increased use of autonomous driving capability. Luxury car producers are developing less-expensive models, and companies such as Toyota are redesigning their cars to be more compact, efficient, and sporty.38

    38 Joseph B. White, “Auto Makers Look Past Baby Boomers,” Wall Street Journal (Online), January 16, 2013.

  2. Companies such as Procter & Gamble Co., Unilever PLC, and Kimberly Clark Corp. are now using retina-tracking cameras to test consumer responses to new products. Kimberly Clark wanted to know which designs on its Viva paper towels were noticed in the first 10 seconds a customer looked at a shelf. This is the period when shoppers typically place items in their carts. Research has shown that what people want to do and what they say they want to do are often quite different. Companies are making increased use of this technology and three-dimensional computer simulations of product designs due to the lower costs of this technology.39

    39 Emily Glazer, “The Eyes Have It: Marketers Now Track Shoppers’ Retinas,” Wall Street Journal (Online), July 12, 2012.

  3. Anheuser-Busch InBev NV and other beer producers are trying to win back customers who have switched to smaller brewers or to liquor. Anheuser launched Bud Light Platinum with a 6 percent alcohol content compared with 4.2 percent in Bud Light. Platinum is sweeter and sold in a cobalt blue bottle designed to be more popular in bars where much of this beer is sold. The company experiments with three new beers each day in its research brewery. Anheuser is also developing new products such as Bud Light Lime-a-Rita, which tastes like a margarita, and a tea-and-lemonade drink and a cider, each containing 4 percent alcohol. The company is using its Clydesdale horses to bring more free beer samples to festivals and fairs.40

  • Chapter 5: Application Questions 3 on page 141 (30 points)

The following discussion describes a new inventory system used by J. C. Penney39:

39 Gabriel Kahn, “Made to Measure: Invisible Supplier Has Penney’s Shirts All Buttoned Up,” Wall Street Journal, September 11, 2003.

In an industry where the goal is rapid turnaround of merchandise, J.C. Penney stores now hold almost no extra inventory of house-brand shirts. Less than a decade ago, Penney would have stored thousands of them in warehouses across the U.S., tying up capital and slowly going out of style.

The entire program is designed and operated by TAL Apparel Ltd., a closely held Hong Kong shirt maker. TAL collects point-of-sale data for Penney’s shirts directly from its stores in North America for analysis through a computer model it designed. The Hong Kong company then decides how many shirts to make, and in what styles, colors, and sizes. The manufacturer sends the shirts directly to each Penney store, bypassing the retailer’s warehouses and corporate decision makers.

  1. Discuss how this case illustrates the concept of the opportunity cost of capital.

  2. How does this innovation also help in demand management?

  • Chapter 5: Exercise Question 3 on page 138 (30 points)

Jim is considering quitting his job and using his savings to start a small business. He expects that his costs will consist of a lease on the building, inventory, wages for two workers, electricity, and insurance.

  1. Identify which costs are explicit and which are opportunity (implicit) costs.

  2. Identify which costs are fixed and which are variable.

Please provide sufficient details to your responses and show all your work for numerical problems.

General Assignment Instructions

An in-depth response for a question typically involves:

  • Analyzing the question
  • Introducing, defining, and correctly applying key relevant concepts
  • Connecting the question and concepts to other concepts in the course and/or the textbook and other outside sources
  • Illustrating the response with examples and/or graphs, tables, or charts

Solutions

Expert Solution


Related Solutions

Apply to real-world business situations. Complete the following questions from the required Economics for Managers textbook:...
Apply to real-world business situations. Complete the following questions from the required Economics for Managers textbook: Chapter 5: Exercise Question 3 on page 138 Jim is considering quitting his job and using his savings to start a small business. He expects that his costs will consist of a lease on the building, inventory, wages for two workers, electricity, and insurance. Identify which costs are explicit and which are opportunity (implicit) costs. Identify which costs are fixed and which are variable.
Complete the following questions from the required Economics for Managers textbook: In an industry where the...
Complete the following questions from the required Economics for Managers textbook: In an industry where the goal is rapid turnaround of merchandise, J.C. Penney stores now hold almost no extra inventory of house-brand shirts. Less than a decade ago, Penney would have stored thousands of them in warehouses across the U.S., tying up capital and slowly going out of style. The entire program is designed and operated by TAL Apparel Ltd., a closely held Hong Kong shirt maker. TAL collects...
Complete the following review questions from Chapter 10 of the textbook: Explain the benefits for organizations...
Complete the following review questions from Chapter 10 of the textbook: Explain the benefits for organizations of implementing a well-defined and structured change control management process. Plagiarism You are expected to write primarily in your own voice, using paraphrase, summary, and synthesis techniques when integrating information from class and outside sources. Use an author’s exact words only when the language is especially vivid, unique, or needed for technical accuracy. Failure to do so may result in charges of Academic Dishonesty....
For this activity, you will apply analysis to a real-world scenario by answering questions about the...
For this activity, you will apply analysis to a real-world scenario by answering questions about the Chapter 9 Closing Case Study: Do Yuan to Buy Some Renminbi? Link to where the case study is - http://www.chegg.com/homework-help/yuan-buy-renminbi-mid-2011-chinese-government-trying-decide-chapter-9-problem-4q-solution-9780132668668-exc Please read the case study carefully and respond to the following: 1. Research the Chinese Yuan and discuss its importance in the global economy. 2. Looking at China’s current economy, discuss their exchange rate and the impact it has had on the foreign direct...
home / study / business / economics / economics questions and answers / consider the following...
home / study / business / economics / economics questions and answers / consider the following two quotes: 1. in australia, the story has been quite different. investment ... Question: Consider the following two quotes: 1. In Australia, the story has been quite different. Investmen... Consider the following two quotes: 1. In Australia, the story has been quite different. Investment spending here has been at a historically high level over much of the past decade. This has been primarily due...
For Supply and Demand Analysis Due Week 2 Complete the following questions from your Textbook (page...
For Supply and Demand Analysis Due Week 2 Complete the following questions from your Textbook (page 75). For EACH question, please graph AND explain your graph in detail below. I encourage students to review the PPTX and review Chapter 3 in the text as well. Note: Students can use excel OR write on this page and either scan the document or take a picture and upload to the gradebook. Keep it simple! Section 1: Demand. Consider the market for cars....
Use supply and demand to explain and show the following real-world situations graphically and in a...
Use supply and demand to explain and show the following real-world situations graphically and in a short paragraph. Be sure to explain what happens to the market quantity and price with a supply and demand diagram as precisely as possible. a) The cost of producing sport utility vehicles (SUVs) decreases because tariffs are reduced on the steel and aluminum used to produce these vehicles. Explain what happens to the market quantity and price of SUVs. b) The fungus Fusarium destroys...
Provide an example of a firm or a small business from the real world that is...
Provide an example of a firm or a small business from the real world that is surviving the dynamic nature of monopolistic competition, and discuss some approaches they have used (or are currently using) to compete and survive in the market.
Provide an example of a firm or a small business from the real world that is...
Provide an example of a firm or a small business from the real world that is surviving the dynamic nature of monopolistic competition, and discuss some approaches they have used (or are currently using) to compete and survive in the market.
From Harvard Business School HBX CORe 2020 Economics for Managers Share a story or a link...
From Harvard Business School HBX CORe 2020 Economics for Managers Share a story or a link to a news article describing a government intervention in a market. Explain how the intervention changes the outcome of the market, and whether you think the intervention had a positive or negative effect.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT