You are an economist for the Vanda-Laye Corporation, which produces and distribu
ID: 1109346 • Letter: Y
Question
You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.
Your supervisor, Jorge, has assigned you the task of evaluating a new product. The new product, oven mittens, has several competitors in the marketplace, but your company will be using a new patented material that provides protection from heat and maintains a great deal of flexibility.
Tasks:
Analyze the goals of the company. What is an operating structure and how can changes affect a company?
Evaluate what information is needed to assess the market factors that will make this product a success of failure.
Explain the basic supply and demand aspects that will make the product a success or failure.
Explanation / Answer
The goal of the company is to overcome the competition and sell as many oven mittens as possible. The operating structure is perfect competition and one innovation may help it to lead amongst others.
The market factors such as, when people prefers to cook outside, how often people prepare trips and picnic do as to use the product and how handy they prefer it to be.
The basic demand will rise it holiday season as it is an outdoor cookware and the demand would rise for handy, lightweighted and long lasting product.
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