Analyze market environment using microeconomics to assess pr…

course name is Economic analysis for strategics
The Assignment Brief

Identify a market of your choosing and consider the characteristics of the market environment and how these may influence the profitability for a business using the framework we developed in class. Critically reflect on the use of microeconomics in analyzing business activity in the context of your application, in doing so identifying other factors that might be important in assessing profitability.

Word Limit

The word limit for the assignment is 2,000 words (strict, excluding bibliography).

Advice

• You should choose an environment you are familiar with so you can apply what we have learned in class to something that you know.
• You can look at this from the perspective of a business already operating in the market, or consider a business that is looking to enter the market.
• You need to use the framework and the tools that we developed, but you do not need to be completely exhaustive in terms of topics we covered. That said, you do need to cover enough ground to demonstrate substantive learning of the ideas and concepts.
• You must reflect on what you have learned and consider its use in assessing business activity in market environments, and look to identify other key aspects that may have an influence on business profitability.

Expectations

A good essay should demonstrate:

• understanding of a range of key microeconomics concepts that have been introduced throughout the class;
• an ability to select the appropriate microeconomic concepts to consider the impact of market environments on the operation and profitability of businesses;
• an ability to link the conceptual framework developed in the class to a real-world environment; and
• an ability to critically reflect on the application of the conceptual framework to a real-world environment

Feedback

You will receive your mark and feedback for your assignment three weeks after submission.

A Framework to Assess the Influencers of Profitability

Using the lens of microeconomic thinking, we have identified several key determinants of

business profitability

Important when assessing the operation of a business in an existing market, and when

considering entering a new market

We have taken an abstract model-based approach can be tailored to any specific

circumstance you want to consider

Individual assignment

Individual assignment worth 85% of the mark for the class (Max 2,000 words)

Identify a market of your choosing and consider the characteristics of the market environment and how these may

influence the profitability for a business using the framework we developed in class. Critically reflect on the use of

microeconomics in analyzing business activity in the context of your application, in doing so identifying other factors

that might be important in assessing profitability.

You need to use the framework and the tools that we developed, but you do not need to be completely exhaustive in

terms of topics we covered. That said, you do need to cover enough ground to demonstrate substantive learning of

the ideas and concepts.

You must reflect on what you have learned and consider its use in assessing business activity in market

environments, and look to identify other key aspects that may have an influence on business profitability.

Individual assignment

A good essay should demonstrate:

understanding of a range of key microeconomics concepts that have been introduced throughout the class.

an ability to select the appropriate microeconomic concepts to consider the impact of market environments on the

operation and profitability of businesses.

an ability to link the conceptual framework developed in the class to a real-world environment; and

an ability to critically reflect on the application of the conceptual framework to a real-world environment.

Example 1

Mass-market Fashion Segment in the GCC Region

Purpose: To analyze the market environment and its characteristics that influence the profitability of XX by using the concepts of microeconomics

Introduction

The fashion market

Segments

The mass-market segment is fragmented or no? monopolistic competition?

Entry Barriers level for new firms (advertising, brand loyalty, brand image, market knowledge, etc.)

Vertical/horizontal integration?

Example 1

Mass-market Fashion Segment in the GCC Region

Demand

Demand for clothing is elastic? Consumers are highly price-sensitive?

Cross-price elasticity of demand will be positive or negative?

The degree of product differentiation is low or high between these mass-market brands?

Low or High pricing strategy?

Clothing is a non-durable or durable good?

Costs

Rent, payroll costs etc.

UAE real estate sector price increase and the impact on fixed costs

Variable costs

Example 1

Mass-market Fashion Segment in the GCC Region

Competitors

market share?

companies revenue or profit figures?

economies of scale (impact on profitability or efficiency)?

Product differentiation

degree of product differentiation (designs, or styling between these brands is low (Zara, Bershka)

branding, packaging, marketing campaigns, visual merchandising, online sales, store location

product differentiation strategy ?

Price discrimination

Second-degree price discrimination strategies ?

Loyalty programs?

Critical reflection/Conclusion

Example 2

Shallow-water Offshore drilling market in the Kingdom of Saudi Arabia and UAE

Purpose: Examine the offshore drilling market from the perspective of a drilling contractor with respect to

demand, competition and barrier faced by a new entrant to the industry.

Introduction

Offshore oil and gas drilling industry

Offshore drilling sectors

Major drilling operators/contractors

Market share of the middle east oil production

Example 2

Shallow-water Offshore drilling market in the Kingdom of Saudi Arabia and UAE

Market structure

Monopolistic competition?

Size of the market and fleet capabilities

Market Elasticity

Elasticity of the market

Product Differentiation

new generation technologies etc

Entry barriers

Investment, availability of assets to enter the market, In country value, Branding and Loyalty, etc

Economies of scale

Critical reflection/Conclusion

Example 3

Faraday Future Intelligent Electric Inc.: Struggling entrant into a struggling market

FFIE business in a nutshell

Why are the EVs struggling?

Scope of the study: Luxury electric vehicles market (US market) – Battery Electric Vehicles market

FFIE product differentiation

Market structure

Barriers to entry

Tesla Power

Profitability

FFIE situation

Tesla As benchmark

Battery cost impact

Critical reflection/Conclusio

The assignment calls for students of EAS to:

Identify a market of your choosing and consider the characteristics of the market environment and how these may influence the profitability for a business using the framework we developed in class. Critically reflect on the use of microeconomics in analysing business activity in the context of your application, in doing so identifying other factors that might be important in assessing profitability.

A good essay should demonstrate:

understanding of a range of key microeconomics concepts that have been

introduced throughout the class;

an ability to select the appropriate microeconomic concepts to consider the

impact of market environments on the operation and profitability of

businesses;

an ability to link the conceptual framework developed in the class to a realworld environment; and

an ability to critically reflect on the application of the conceptual framework to

a real-world environment.

Distinction (72, 75, 78, 84, 92, 100)

A clear description of the context of the market environment and the focal

firm operating in that market (if appropriate).

Selection of appropriate microeconomic concepts to use in the context to

explore the ability of firms to make profit.

Clear explanation of the microeconomics concepts that are used that

demonstrates excellent understanding of them.

Accomplished application of the range of concepts considered with a clear

link between the concept and ability to make profit identified.

A substantive critical reflection that considers the suitability of the approach

and the concepts for the purpose of understanding business activity in market

environments.

The essay is well-structured, the language used appropriate, and the narrative

clear.

For grades exceeding 80 the essay needs to be excellent in all its components

and present unique insight.

Merit (62, 65, 68)

The essay meets most of the criteria for the Distinction category, but it

displays some weaknesses. It should nevertheless demonstrate achievement

of the learning outcomes.

The key microeconomics concepts relevant to the context should be included

and explained.

Links should be made between the concepts and the ability of firms to make

profit.

A critical reflection should be included but this may be relatively short.

Pass (52, 55, 58)

The essay has some significant weaknesses but demonstrates coherent

understanding of the application of microeconomics concepts to understand

the operation of businesses in markets.

The context nevertheless needs to be clearly laid out, and appropriate

microeconomic concepts chosen to be considered.

Explanation of these concepts should be attempted, but these explanations

might have some weaknesses.

The student may have missed including a critical reflection.

Diploma (42, 45, 48)

The essay has substantial weaknesses and is below the standard for MBA

level work.

The context may be inappropriate.

Explanations of concepts may be weak and not demonstrate understanding.

Some key concepts relevant for the context have been missed.

The critical reflection may be weak or not included.

Fail (38, 35, 32, 20, 10)

The context may not be appropriate, and might not be well-explained.

Explanations of concepts are weak and demonstrates a lack of understanding.

Little in the way of critical reflection is included.

important instructions

*Assignment Guidelines from**Structure & Context*- Provide sufficient context so that a reader unfamiliar with the topic can understand it- Include a critical reflection section at the end (can be a standalone paragraph or integrated into the conclusion)*Key Content Requirements*- Demand analysis is essential, this must be included – Market share should be addressed- Select 47 key influencers of profitability, do not attempt to cover all of them*Formatting & Word Count*- Tables, graphs, and diagrams do not count toward the word limit- Avoid using appendices*References & Sources*- Quality of references matters more than quantity, use appropriate, relevant material- If using generative AI, verify all references manually

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