Free Assignment 2 Operations Decision

About this course: In this course, you will learn about the role of operations and how they are connected to other business functions in manufacturing- and service-focused organizations. You will learn and practice the use of decision-making frameworks and techniques applicable at all levels, from management-level strategic decisions such as connecting process to the needs of various customer segments, to front-line tactical decisions such as choosing between ordering larger quantities vs. ordering more frequently. Upon successful completion of this course, you will be able to: • Understand the role of operations management • Relate underlying principles to operations management frameworks and techniques • Synthesize information to make strategic operations decisions • Evaluate processes on different dimensions • Apply analytical techniques for tactical operations decision This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see onlinemba.illinois.edu.

Unformatted text preview: Assignment 2 Operations Decision: Economics paper 2 Course name: Course no. Date: Instructor’s name: From the data provided, we can see that the demand function for low-calorie microwavable food is – QD = 20,000 - 10P + 1500A + 5PX + 10 I The most important result that follows from the regression is that advertisement plays an important role in determining the demand. Therefore, the market for low-calorie microwavable food is not perfectly competitive. This is because there is no role of advertisement in a perfectly competitive market. The market is also not a monopoly. This is because even monopoly doesn’t require advertisement expenditure. Moreover, the demand function estimated states that the demand depends on the price of its competitor. Therefore the market for low calorie microwavable food is surely not a monopoly. This implies that, the market for low calorie microwavable food must belong to either an oligopoly market or a monopolistically competitive market. We know that advertisement plays an important role in a monopolistically competitive market. Besides this, another salient feature of a monopolistically competitive market is product differentiation. Every firm under a monopolistically competitive market performs product differentiation. In our example, there are several firms producing low calorie microwavable foods. But each of the firms practices product differentiation. They slightly differentiate their product from their competitors to highlight their own product and thereby increase the market share. Therefore this firm is an example of a monopolistically competitive market . Pricing Strategies : In a monopolistic competitive market, there are a large number of sellers. Hence a price change will induce the consumers to shift to other firm. This makes the demand curve relatively elastic. But since the products sold under monopolistic competitive market are differentiated, the demand curve is not perfectly elastic like that of a perfectly competitive market. competitive market....
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