Assignment 2: Operations Decision
Due Week 6 and worth 300 points
Using the regression results and the other computations from
Assignment 1, determine the market structure in which the low-calorie food
Use the Internet to research two (2) of the leading
competitors in the low-calorie microwavable food industry, and take note of
their pricing strategies, profitability, and their relationships within the
Write a six to eight (6-8) page paper in which you:
1.Outline a plan that will assess the effectiveness of the
market structure for the company’s operations.
2.Suppose the business operations have now changed from the
market structure specified in the scenario. Determine two (2) likely factors
that might have caused the change. Predict the primary manner in which this
change would likely impact business operations in the new market environment.
3.Analyze the major short-run and long-run production and
cost functions for the low-calorie microwaveable food company. Suggest
substantive ways in which the low-calorie food company may use this information
in order to make decisions in both the short-run and the long-run.
4.Determine the possible circumstances under which the
company should discontinue operations. Suggest key actions that management
should take in order to confront these circumstances. Provide a rationale for
5.Suggest one (1) pricing policy that will enable your
low-calorie microwavable food company to maximize profits. Provide a rationale
for your suggestion.
6.Outline a plan, based on the information provided in the
scenario, that 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.
7.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 recommendations.
8.Use at least five (5) quality academic resources in this
assignment. Note: Wikipedia does not qualify as an academic resource.
Your assignment must follow these formatting requirements:
•Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references must follow
APA or school-specific format. Check with your professor for any additional
•Include a cover page containing the title of the
assignment, the student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in the required
assignment page length.
The specific course learning outcomes associated with this
•Analyze short-run and long-run production and cost
•Apply macroeconomic concepts to changes in global and national
economies and how they affect economic growth, inflation, interest rates, and
•Evaluate the profit-maximizing price and output level for
given operating costs for monopolies and firms in competitive industries.
•Use technology and information resources to research issues
in managerial economics and globalization.
•Write clearly and concisely about managerial economics and
globalization using proper writing mechanics.