Objectives: The ultimate purpose behind the applied paper is to apply theoretical, conceptual, and analytical knowledge we cover in the course. In a way, each group will develop a case study to share with everyone. Though the paper will include almost everything we cover in the class, you shall put more emphasis on certain research questions you would like to address through your research. You might focus on pricing, market structure, cost efficiency, productivity, etc. Similarly, you shall highlight the key research questions and findings of your paper in the Poster preparation if you choose to join the poster competition.
Industry Analysis:
You shall cover the following issues for the industry analysis:
• Market structure and Competition
• Profitability and Performance Analysis
• Historical trend analysis
• The role of government
• National and international market comparison
Company Analysis:
You shall cover the followings for the company analysis:
• Brief company profile
• History
• Market share, profitability, and performance analysis
• Corporate governance, principle-agent problem, and incentive structure, and productivity
• Comparative analysis: Strengths and weaknesses compared to its competitors
Product Analysis:
You shall cover the followings for the company analysis:
• Explain past, present, and future price of the product through the use of demand and supply analysis
o Pricing policy and profit margin
o Factors affecting its pricing and profitability
o Demand analysis (use actual data along demand curves)
o Supply analysis (use actual along supply curves)
o Calculate Elasticity (calculate price elasticity of demand, cross price elasticity, and income elasticity) and link to the pricing policy
• Consumer theory and preferences for the product using indifference curve and income
• Cost analysis (ATC, AVC, AFC, MC, sunk cost and optimum uses of capital and labor)
• Revenue analysis (AR, P, MR, TR)
• Profit/loss analysis in the short-run and long-run
• Economic vs accounting cost/profit
• Efficiency analysis (for consumers, producers, and society)