Assignment 2: Market Structure Analysis

Assignment 2: Operations Decision

Sadrina Clayton

Dr. Camille Castorina

ECON 550 Managerial Economics & Globalization

February 7, 2018 Outline a plan that will assess the effectiveness of the market structure for the company’s operations. A comprehensive assessment is the review of a company’s market structure for the company’s operation and ways to determine its effectiveness. “A market structure analysis can illuminate the financial reports by identifying the company’s competitive position within the industry, brand strengths (and weaknesses), and highlight dimensions of value not captured by a balance sheet” (McMann & Randolph 2011). The completion of an assessment by the company of the customers’ wants and needs allow the company

The reasons that a company would choose would be not being able to compete in market or inadequate capital. If a company cannot keep up with competitor pricing or technological advancements, it is best that the company discontinue operations. Consumers are always looking for new innovations or trends to follow. In order to keep up with current trends, a company must have adequate capital in order to invest in upgrades. If a company does not have the revenue to invest in keeping the company current then they are bound to lose customers. Another reason that a company should discontinue operations is if a supplier is no longer in business and they are no longer able to get needed supplies. If a company is unable to get need supplies and material, then they are unable to produce or manufacture products and

In my opinion, the best pricing strategy for the microwavable meals would be the penetration pricing strategy. The penetration pricing strategy is defined as “setting a price low to enter a competitive market and raising it later” (Richards). Using this strategy allows the company to attract a customer base by raising awareness about product and getting people to try it. This helps to generate buzz about product by word of mouth.

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.

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