Theoretical and quantitative analysis

Overview: In this third milestone assignment for the final project, you will conclude your analysis of the economic problem presented by the hypothetical CEO or board of directors in your selected company (Microsoft, Heinz, or American Airlines). Using the information gathered in your theoretical and quantitative analysis, you must now develop some substantiated and meaningful recommendations for the decision makers. What plan of action should they take? How are your ideas supported by the market structure? How does the data suggest relationships and trends that may point to a course of action? Does your suggested plan of action involve risk or uncertainty and, if so, what tools do you recommend decision makers use?


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Prompt: To complete the third step of this final project, you will submit a set of recommended solutions to the CEO or board of directors outlining the reasoning behind your ideas. Explain the quantitative relationship among the relevant economic factors, and defend how these relationships, trends, and impacts drive your proposed solution(s). Emphasize the logic behind your processes, identifying the implications of the different options. To do this, offer answers to the following questions:


1) What will likely happen if the stakeholders follow your recommendations?

2) What will likely happen if the recommendations are not followed?

3) What are the consequences of inaction?


Be sure to discuss how the market structure (pure competition, monopolistic competition, oligopoly, or pure monopoly) in which your company operates has impact on your recommendations.


To conclude, identify how your recommendations promote the goals of your organization. Reiterate these objectives as identified in your initial problem statement, and explain how your proposals will accomplish the objectives.


Again, remember that you must present and deliver your information in a way that will be understandable to a diverse audience and will convince them of the value and rationale behind your proposals.


As a managerial economics student and professional, you are encouraged to use your own experience, understanding, and knowledge of business and industry structure to drive your analysis. Specifically, the following critical elements must be addressed:



I. Recommendation:

In this section, you will recommend an economic solution to your research topic.

A. Develop a recommendation for a logical economic solution to the presented issue.

B. Predict trends and impacts related to your recommended solution, using the quantitative relationship between economic factors.

C. Defend your predicted trends and impacts, using quantitative data to explain your logic.

D. Describe the influence of the market structure on your recommendation.

E. Present your recommendation in a way that is consumable for a diverse audience.


II. Conclusion:

In this section, you will summarize your research and recommendations.

A. Explain how your recommendation promotes the goals of your organization.

B. Predict potential implications if your recommendation is not accepted. Why is this important to your organization?

C. Summarize your research in a way that is suitable, considering your intended audience



Guidelines for Submission:


This milestone assignment should be written in essay format and submitted as a Microsoft Word document. The submission should be 5 to 10 pages (including references, graphs, charts, etc.) with double spacing, 12-point Times New Roman font, and one-inch margins. Although conciseness is valued, your processes and justifications need thorough explanation. You should use current APA style guidelines for your citations and reference list. Note that at least five outside information sources are required overall for this project, although you might find that more are necessary to satisfy the requirements of the final presentation.

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