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.
Now is the time to make a decision about relocating the manufacturing operation to the United States is fast-approaching. AutoEdge, like most companies, uses a strengths, weaknesses, opportunities, and threat (SWOT) analysis to facilitate its decision making.
You have just completed your first monthly activity report for the board when Lester calls.
“Hi,” you say. “I just finished my monthly report for the board. I’ll e-mail it to you when we get done talking.”
“Sounds good,” he says. “I’m calling because we need your expertise again for another facet of our investigation into the manufacturing operation. This time, I want you to conduct a detailed SWOT analysis for AutoEdge, and provide a brief summary of your analysis.”
“I was expecting this,” you say. “Some of the research I’ve done over the past 4 weeks will be useful as I put this analysis together for you.”
“Yes, I thought you were in a good position to do this work,” he says. “Your analysis may be different from other people who have been at the company longer, but your fresh perspective on the components will be helpful in moving the debate forward.”
“That’s a good point,” you say. “I’ll keep that in mind as I go through the information.”
Demonstrate how metrics such as valuation, economic profit, and related terms are measured and evaluated.
Explain the significance and implications of various economic theories pertaining to profit, consumer choice, demand and supply, forecasting and optimization.
Apply risk methodologies to economic situations using a variety of approaches ranging from basic statistics to certain equivalency. Use two cited references