Chat with us, powered by LiveChat In this week's discussion you are going to be the CEO of a company.??In anticipation of the upcoming quarterly disc | WriteDen

In this week’s discussion you are going to be the CEO of a company.??In anticipation of the upcoming quarterly disc

In this week's discussion you are going to be the CEO of a company.  In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the pressure that cost-push inflation is having on profits. There will be some erosion of profits.  Please make yourself CEO of only one of these hypothetical companies.

Profile of the Companies 

All America Grocery Inc - We serve communities in the middle of the income market providing low prices for all basic grocery needs. Our modest income consumers expect goods deals on good quality foods.  The Covid-19 pandemic has put upward pressure on the price of everything we sell. We are also experience rising cost in every aspect of our operation as we have to put extra resources in to protecting both our employees and the public.  We are both fortunate and unfortunate that the price elasticity of demand for food is .20.  

Very Big US Auto - Very Big US Auto is one of the oldest and one of the largest manufacturers of autos in the US.  Very Big US Auto's supply chain is highly dependent components manufactured in China and assembled in the US, (think back to our week 1 problem with the seat manufacturer).  The Chinese economy has rebounded quickly, much of the production capacity is still going to rebuild inventories, so the supply of components still lag behind demand so there is upward pressure on all of our costs.  Additionally manufacturing facilities like ours must take extra precaution to keep workers safe.  Costs are rising on all aspects of production across the industry.  On the demand side, Very Big US Auto knows that demand is relatively elastic with a price elasticity of demand of 1.2. But we also know that pandemic has made some transportation substitutes less acceptable. 

Big Time Entertainment - Big Time Entertainment is a nationwide firm providing movies, arcades and other in person entertainment venues such as bowling and roller skating.  Our operations have been heavily impacted during the Covid-19 pandemic.  On reopening we have been faced with a host of regulations that have greatly increased our cost of operations. We also face uncertainty as to the potential for additional shutdowns. Customers are fearful plus the guidance on operating our facilities means we are operating far below our optimal number of patron to cover the higher cost for cleaning and other measure to protect the public and our employees.  Price elasticity of demand is 1.6 and we are also faced with more competitors, online entertainment and gaming, that are not experiencing these cost pressures. 

Now explain:

  • Is the demand curve for your product relatively elastic, inelastic or unitary elastic?  Demonstrate for your company's product, by how much the quantity demanded will change if you pass on a 10% increase in cost. In other words, show your calculation of the percentage change in the quantity demanded if your prices are raised by 10%. You must provide a calculations showing the percentage change in quantity demanded. 
  • Given your company's price elasticity of demand and the industry supply/competitive environment you face, prepare a statement for your board as to the potential impact on profits.   Who will pay the larger share of the cost increases, your firm or your customers? 

    HOW OUR WEBSITE WORKS

    Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of 
    HIGH QUALITY & PLAGIARISM FREE.

    Step 1

    To make an Order you only need to click ORDER NOW and we will direct you to our Order Page at WriteDen. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
     Deadline range from 6 hours to 30 days.

    Step 2

    Once done with writing your paper we will upload it to your account on our website and also forward a copy to your email.

    Step 3
    Upon receiving your paper, review it and if any changes are needed contact us immediately. We offer unlimited revisions at no extra cost.

    Is it Safe to use our services?
    We never resell papers on this site. Meaning after your purchase you will get an original copy of your assignment and you have all the rights to use the paper.

    Discounts

    Our price ranges from $8-$14 per page. If you are short of Budget, contact our Live Support for a Discount Code. All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

    Please note we do not have prewritten answers. We need some time to prepare a perfect essay for you.