Managerial Economics Chapter 10: Strategy The Quest To Keep

Managerial Economicschapter 10 Strategy The Quest To Keep Profit Fro

Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding. Also, provide a graduate-level response to each of the following questions: What strategy is your company following (try to classify it into one of the three strategies in the text)? How is your strategy working—how long will it allow you to maintain a competitive advantage? [Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text.] Other sources are not required but feel free to use them if they aid in your discussion. [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review].

TextBook: Title: Managerial Economics ISBN: Authors: Froeb Publisher: Cengage Edition: 5TH 18

Managerial Economics Chapter 10: Strategy: The Quest to Keep Profit from Eroding. Problem Set – 7 To increase a company’s performance, a manager suggests that the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect (Hint: Think about what else might or might not change that affects profit.) The assignment is to answer the question provided above in essay form. This is to be in narrative form. Bullet points should not to be used. The paper should be at least 1.5 - 2 pages in length, Times New Roman 12-pt font, double-spaced, 1-inch margins and utilizing at least one outside scholarly or professional source related to organizational behavior. This source should provide substance and not just be mentioned briefly to fulfill this criteria. The textbook should also be utilized. Do not use quotes. Do not insert excess line spacing. APA formatting and citation should be used.

TextBook: Title: Managerial Economics ISBN: Authors: Froeb Publisher: Cengage Edition: 5TH 18

Org. Leadership & Decision Making Chapter 5 : Ethics in Leadership After completing the reading this week, we reflect on a few key concepts this week: · Discuss what ethical leadership is and how it impacts the organizational culture. · What are the various dimensions of ethical leadership? · Note some failures in ethical leadership, please find an example, explain the failure and note possible solutions to fix the issue with leadership. Please be sure to answer all the questions above in the initial post. At least one scholarly (peer-reviewed) resource should be used in the initial discussion thread. Please ensure to use information from your readings and other sources from the UC Library.

Use APA references and in-text citations. Please be sure to engage by Wednesday at 11:59pm ET and then engage on two more days throughout the week (for a total of three days of engagement, before Sunday at 11:59pm, ET.

TextBook: Title: Organizational Leadership ISBN: Authors: John Bratton Publisher: SAGE Publication Date: Edition: 1st ED. Journal Article 5.1: Bormann, K.C. and Rowold, J. (2016) ‘Ethical leadership’s potential and boundaries in organizational change: a moderated mediation model of employee silence,’ German Journal of Human Resource Management, 30(3–4): 225–245. Journal Article 5.2: DOI: 10.1177/

Paper For Above instruction

In contemporary managerial economics, strategies aimed at sustaining profitability are central to ensuring long-term organizational success. One key concept from the assigned readings emphasizes the importance of maintaining a competitive edge through strategic adaptation. Understanding the classification of business strategies—whether cost leadership, differentiation, or focus—is essential to analyzing an organization's approach to market positioning. For instance, a firm engaged in cost leadership strives to minimize expenses to offer lower prices, thus competing primarily on price. Conversely, differentiation involves providing unique products or services that command premium prices. Focus strategies target niche markets where the firm may either compete on cost or differentiation within a specific segment.

In assessing my company's strategy, it appears aligned with a differentiation approach. The organization emphasizes innovative product features and superior customer service, which are intended to make our offerings stand out from competitors. This strategy allows us to command higher prices and foster brand loyalty, which are crucial for sustaining profitability amidst changing market dynamics. However, the effectiveness of this strategy hinges on continuous innovation and maintaining a perception of unique value. Currently, our differentiation strategy has yielded positive results, with increased market share and customer satisfaction scores over the past few years.

The longevity of our competitive advantage is contingent upon several factors. Innovations that reinforce our unique value proposition must be ongoing, as competitors are rapidly adopting similar features or services. Additionally, market trends shift, and consumer preferences evolve, necessitating adaptive strategic planning. While differentiation can provide a sustainable advantage if properly managed, it remains vulnerable to imitation and commoditization over time. Consequently, our company’s strategic positioning is sustainable in the medium term but requires ongoing innovation and marketing efforts to prolong its advantages further.

From the perspective of managerial economics, increasing a company’s performance by boosting the value of its products is a common recommendation. However, this advice may be flawed if it neglects other critical factors influencing profitability. First, enhancing product value without considering cost implications can erode margins, especially if the incremental costs outweigh the benefits. Second, focusing solely on value creation may overlook external factors such as competitive responses or market saturation that diminish profitability. Third, an exclusive emphasis on customer-perceived value might lead to overinvestment in features that do not significantly impact buyer decision-making, thus wasting resources.

Strategic miscalculations can occur if managers misjudge the elasticity of demand or consumer preferences, leading to ineffective investments in product improvement. For example, if a company invests heavily in adding features that customers do not value or are unwilling to pay for, the additional costs may not be justified, resulting in reduced profits. Moreover, increased value perception can trigger price wars or commoditization, which diminishes overall profit margins. Lastly, neglecting the broader economic environment, such as input costs or regulatory changes, can negate the benefits of value enhancement initiatives.

In conclusion, while increasing product value is a valuable strategy for sustaining competitive advantage, it is imperative to consider the broader context. Managers must evaluate costs, consumer preferences, competitive responses, and macroeconomic factors before pursuing such initiatives. Failure to do so could result in strategies that temporarily boost perceptions without delivering long-term profitability or sustainability.

References

  • Froeb, L. (2018). Managerial Economics (5th ed.). Cengage.
  • Porter, M. E. (1985). Competitive Advantage. Free Press.
  • Schindler, R. M. (2012). Pricing Strategies: A Marketing Approach. Journal of Business Strategy, 33(4), 3–11.
  • Hill, C. W. L., & Jones, G. R. (2012). Strategic Management: Theory: An Integrated Approach. Cengage Learning.
  • Jones, G. R., & George, J. M. (2011). Contemporary Management. McGraw-Hill/Irwin.
  • Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, 70(1), 71–79.
  • Kim, W. C., & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review, 82(10), 76–84.
  • Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Wiley.
  • Ghemawat, P. (2001). Distance Still Matters: The Hard Reality of Global Expansion. Harvard Business Review, 79(8), 137–147.
  • Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.

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