You will apply economic principles presented in Weeks One through Three in this week's assignment. Your assignment will be reviewed by your peers and by your facilitator in week five and should be revised as necessary based on feedback as the first part of the final assignment in week six.
Select a new, realistic good or service for an existing industry.
Write the economic analysis section of a business proposal. This will include statements about the market structure and the elasticity of demand for the good or service, based on text book principles. You need to create hypothetical data, based on similar real world products to estimate fixed and ...view middle of the document...
These factors will also be considered. FGI is involved in monopolistic competition. Given the rise in competition and decrease in market share, they face a number of important decisions. As a manufacturer of construction and forestry equipment, demand for their products is driven from several angles. Forecasting market fluctuations is the key to capitalizing on the ebb and flow of the market. Unless a successful market strategy is defined, remaining competitive may be a constant struggle.
FGI Business Proposal (Abbreviated)
FGI is an established manufacturer of construction and forestry equipment. The company’s reputation is one of strength and longevity. In spite of the economy’s recent dismal track record, FGI intends to “weather the storm” just as it has been able to survive through these last few years. Although there are many other companies within the industry, it is somewhat a niche’ market as there is a specific need for the product line. Our competition, monopolistic in nature, is found not only in the United States but spans the globe as well. Becoming a stronger player in the global market is not our primary focus at this time. Instead, partnering with loyal domestic clients has seen a modest, yet consistent increase for the last two quarters.
As such, our market strategy focuses on setting FGI apart...
Thomas Money Service Inc.
Since the 1940’s TMS has been providing small loans to consumers. During that time TMS augmented its business to include the servicing of business loans, business acquisition financing, and commercial real estate loans. In 1946 TMS decided to finance forestry and construction equipment. The decision proved to be very profitable and resulted in TMS’s establishment of Future Growth Inc. (FGI). Consequently FGI also experienced an immense demand for equipment allowing FGI the capability to purchase its own equipment manufacturing company. This allowed FGI to sell, build, and finance its own equipment. For 67 years FGI’s business venture went well (UOP, 2010).
Currently FGI is faced with making various decisions due to the failing economy and several natural disasters that have occurred in various states. The sale of homes has also decreased. Much of the equipment is being repossessed by FGI, in turn FGI has decided to bundle it together and selling it at a discounted price. The purpose of this proposal is to provide business recommendations to Thomas Money Service Inc (TMS). In light of everything that is occurring in the economy TMS has requested recommendations addressing how TMS can increase revenue, its ideal production levels, maximizing profit through fixed and variable costs in addition to reducing costs.
Increasing revenue is the goal and continuous effort of any organization regardless of how the economy is doing but it is most important in a declining economy. Thinking and planning strategically will assist any business in increasing revenue....