Assignment:
Length 2000 words
Please note that this question requires substantial research and use of real data (see the assessment criteria below).
Company: Coles supermarkets. Coles.com.au
a) Briefly describe your company (including the type of product, turnover, profit, employment). Explain a decision made by your company that involved opportunity costs that should have been considered. Why did your company made this decision? What should it have done? Compute the profit consequences of the change. Discuss whether you would recommend the change. Explain why.
b) Describe a pricing decision your company has made. Was it optimal? Explain, why or why not. How would you adjust the price? Compute the profit consequences of the change. Hint: use marginal analysis to increase profit and consider price elasticity of demand for your product.
c) Describe how a change in exchange rate affects your company whether directly or indirectly.
d) How globalisation affected the pricing strategy, market structure, investment and financial decisions of your company.
In answering these questions you need to
• Use real data from your company to answer the questions.
• Use diagrams where appropriate.
Additional marks
Appropriate use of referencing.
Assessment criteria
• You must refer to the textbook in the first instance to understand the theory behind the questions. Besides the textbook, you should also refer to a few other academic books, journal articles and relevant websites in answering these questions.
• Real data from your company is required.
• Use in-text referencing and provide a list of references.
• All submissions for this course must use the American Psychological Association (APA) referencing style (details can be obtained here).
• Concepts must be defined accurately and completely.
• The assumptions upon which the analysis is based must be stated at the onset.
• Diagrams must be drawn properly, correctly labelled and the relations they depict explained.
• Photocopied and scanned graphs from books, articles or websites are not acceptable. It is preferable to hand-draw a graph then scan it to insert in your file.
• Answers must be complete, addressing the specific tasks nominated in the questions.
• Remember an extension is not a gift, it is a burden.