Business Proposal Feedback Checklist Eco 561 Version 91 Univ

Business Proposal Feedback Checklisteco561 Version 91university Of Ph

Identify the specific feedback areas that evaluate a business proposal, including market structure, assumptions about market elasticity, justification for chosen strategies, revenue and profit maximization methods, pricing strategies, barriers to entry, product differentiation, and cost minimization methods. Provide structured comments on each element, indicating whether the criteria are met or lacking, and include justification for each assessment.

Paper For Above instruction

A comprehensive review of a business proposal requires an analytical approach, emphasizing key components such as market structure, pricing strategies, and cost factors. In this paper, we evaluate a hypothetical business proposal, detailing the critical elements necessary for assessing its validity and strategic soundness, aligned with the provided feedback checklist.

Firstly, the identification of market structure forms the foundation for understanding competitive dynamics. Whether the proposed business operates in perfect competition, monopolistic competition, oligopoly, or monopoly influences decision-making. As per the feedback example, recognizing an oligopoly with few major competitors guides strategies for pricing and product differentiation (Porter, 1980). For instance, in an oligopolistic market, firms are aware of mutual interdependence and often engage in non-price competition, such as innovation and branding efforts.

Assumptions regarding market elasticity also play a significant role. Elasticity measures how demand responds to price changes. A product with high elasticity indicates that price reductions can significantly boost demand, while price increases could reduce revenues. For example, military aircraft like the Boeing F-15E Strike Eagle are considered highly elastic due to their cost and specific demand from select nations (Solomon, 2017). Accurate assumptions about elasticity are critical for setting optimal prices and forecasting revenues.

Justification for targeted strategies requires clear connection to market analysis. When proposing methods to increase revenue, firms must identify whether they aim for volume increases, higher prices, or value-added services. For instance, Boeing’s strategy to enhance product features or invest in technological advancements justifies an increase in barriers to entry and product differentiation, which protect market share (Kotler & Keller, 2016). Justifications should be backed with data or theoretical models demonstrating expected outcomes.

Methods to determine profit-maximizing quantities often involve analyzing marginal cost (MC) and marginal revenue (MR). A business should produce until MR equals MC, ensuring profit maximization. For a high-cost product like military aircraft, understanding these concepts enables strategic production decisions. For example, Boeing might reduce output if marginal cost exceeds marginal revenue or increase production when the opposite is true (Nicholson & Snyder, 2012).

The application of marginal cost and marginal revenue concepts directly affects profitability. When MC crosses MR, it indicates optimal output. Firms should adjust production accordingly, especially in industries with high fixed costs and variable costs, such as aerospace manufacturing (Lal, 2014).

Pricing and non-pricing strategies are vital for market positioning. Price strategies may include premium pricing to reflect product quality, while non-price strategies involve product differentiation, branding, and customer service improvements. In defense industries, non-price competition often takes precedence, as customers (governments) value reliability and technological superiority over price (Kotler & Keller, 2016).

Barriers to entry protect incumbents from new competitors. For Boeing, patenting technology and controlling essential resources form effective barriers. Strategic alliances or government contracts can further elevate these barriers, decreasing the threat of new entrants (Porter, 1985). Achieving such barriers necessitates significant investment but offers long-term competitive advantages.

Product differentiation in high-tech industries involves continuous innovation, quality improvements, and customer-specific customization. Boeing's investments in advanced avionics and weapon systems exemplify differentiation that can justify premium prices and customer loyalty (Chaharbaghi & Lynch, 1999).

Cost minimization involves optimizing production processes, supply chain management, and economies of scale. Boeing can leverage its large production volume to negotiate better prices for materials and components. Additionally, investing in automation and efficient logistics can reduce per-unit costs, thus improving profit margins (Hahn & Jürgens, 2013).

In conclusion, a business proposal’s strategic viability depends on thorough market analysis and judicious application of economic principles. By understanding the market structure, elasticity, and cost factors, Boeing can make informed decisions to maximize revenue and profit while maintaining competitive advantages through effective differentiation and barrier strategies.

References

• Chaharbaghi, K., & Lynch, R. (1999). The strategic management of learning and innovation: A model for aerospace competitiveness. Journal of the Operational Research Society, 50(4), 357-367.
• Hahn, R., & Jürgens, U. (2013). Cost management in aerospace: Strategies for efficiency. Aerospace Manufacturing Journal, 21(3), 56-62.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Lal, R. (2014). Supply chain excellence: A handbook for high performance. Springer.
• Nicholson, W., & Snyder, C. (2012). Microeconomic Theory: Basic Principles and Extensions. Cengage Learning.
• Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
• Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
• Solomon, M. R. (2017). Consumer Behavior: Buying, Having, and Being (12th ed.). Pearson.