Please read the descriiption entirely and ensure you understand deliverable before starting. Please use spreadsheet attached to complete project and use at least 3 sources to support your argument.
Please write a 3-page memo to CEO with graphs and tables on how you plan to turn things around, LCF can take one of three approaches: (1) increase revenue, (2) maintain revenue at the current level, or (3) choose a different strategy based on a limited production quantity that may be below the current level. Your memo should address the questions below.
Market Structure
1. Explain why an understanding the market structure in a which company operates is important to being an effective manager.
2. Explain the market structure that is most likely operating in the market for the Deluxe boxes.
3. Explain the market structure that is most likely operating in the market for the Standard boxes.
Price Elasticity
1. Discuss what actions the company should take in setting the price of the Standard box given its price elasticity of demand.
2. Discuss what actions the company should take in setting the price of the Deluxe box given its price elasticity of demand.
3. Assuming the price elasticity of supply for the Standard box is inelastic, explain the key factors that the company must consider in expanding production.
Scenario
LCF is a firm who financial and operational performance you confirmed is on a downward trajectory. Please identify some of the root causes of the company’s financial stress so that you understand what can be done to turn things around. Reversing the trend is not going to be an easy task, but you are confident because your team has years of experience working with troubled companies.
You have seen many marketing-driven CEOs bankrupt their businesses by losing sight of their company’s bottom line. It is going to be a balancing act to find the right mix of decisions that will improve the efficiency of LCF as well as make it sustainable in the long run.
Your role will be an “economist”. You will study how supply and demand affect LCF. You know that calculating elasticity will help you figure out how to reverse LCF’s downward trend.
Also explore the structure of the industry from various angles and understand how consolidation or transformation impact LCF.
Lastly, memo should meet the competencies below.
• 3.1: Identify numerical or mathematical information that is relevant in a problem or situation.
• 3.2: Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.
• 3.3: Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.
• 4.1: Lead and/or participate in a diverse group to accomplish projects and assignments.
• 4.3: Contribute to team projects, assignments, or organizational goals as an engaged member of a team.
• 4.4: Demonstrate diversity and inclusiveness in a team setting.
• 5.1: Develop constructive resolutions for ethical dilemmas based on application of ethical theories, principles, and models.
• 10.1: Apply relevant microeconomics principles to support strategic decisions for the organization.
