Applied Managerial Economics

Applied Managerial Economics
Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

You’re meeting with Lester in his office to discuss the details of your presentation to the board next week.

“Given all of the research that you have completed over the past several weeks,” he says, “you should have most of the information you need to make a presentation to the board. The board doesn’t want you to do any more research on all of the topics; rather, we want you to summarize the research that you have already done. ”

“Yes,” you say. “I think I have what I need.”

“Of course we want your final conclusion and recommendation on what the company should do regarding the location issue, as well,” he says.

“What type of presentation do you have in mind, Lester?”

“A presentation would be appropriate for this group,” he says. “I want you to include notes, too, in case we have to go back and look at something at a later date. Let’s take a few minutes now to go over how the presentation should be organized. I’ve done similar presentations, so I can save you some time with a few pointers.”

When you get back to your office, you type out your notes about each element you discussed and the overall organization of the presentation. For this presentation, you are addressing the following elements:

Legal, social, and financial factor considerations
Economic factors: gross domestic product (GDP), inflation, interest rates, unemployment
Elasticity of demand
Economies of scale and efficiency
Strengths, weaknesses, opportunities, and threats (SWOT)
Market structure
Risk
Costs (marginal, fixed, variable, etc.)
International expansion

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