Long Term Investment Decisions
Long-term investment decisions
By Gregory Pearson
Introduction
In this paper I will outline long-term investment decisions, including the price elasticity of demand, how to make prices as inelastic as possible by using strategic plans, the difference between demand and elasticity, the economic impact of production and unemployment on our company, the reasons why the government will get involved in economic decisions, the capital project expansions and their complexities, some actions to prevent these complexities, the convergence between stockholder interests and those of management, and the impact on profitability, along with examples. These factors, their consequences, and remedial actions will be discussed, hopefully to prevent the negative factors from occurring. Positive factors will also be discussed, along with actions to keep these factors occurring on an ongoing basis.
Inelastic Pricing Strategies Plan
A price elasticity of less than 1 means that it is inelastic. This is the choice as when price elasticity increases, the price of an item must be decreased, in order to compete in the marketplace. The price elasticity formula states that Price Elasticity of Demand = (% Change in Quantity Demanded)/(% Change in Price). (Guo, 2012) This is a very simple formula that we can use when determining how elastic a price is in the marketplace.
Food, like the low-calorie microwavable meals, are elastic by its very nature. Thus, making this price inelastic can be a bit tricky. However, it can be done and extremely well, with just a little bit of preparation.
The types of food being offered are considered luxury items, as when the going gets tough, other cheaper food products can be purchased. This is why food items are elastic, because alternatives are available at more affordable prices. The substitute market should be researched here.
All prices grow more elastic over time, for as time goes on, substitutes can always be found. This is why it is so crucial to get
By Gregory Pearson
Introduction
In this paper I will outline long-term investment decisions, including the price elasticity of demand, how to make prices as inelastic as possible by using strategic plans, the difference between demand and elasticity, the economic impact of production and unemployment on our company, the reasons why the government will get involved in economic decisions, the capital project expansions and their complexities, some actions to prevent these complexities, the convergence between stockholder interests and those of management, and the impact on profitability, along with examples. These factors, their consequences, and remedial actions will be discussed, hopefully to prevent the negative factors from occurring. Positive factors will also be discussed, along with actions to keep these factors occurring on an ongoing basis.
Inelastic Pricing Strategies Plan
A price elasticity of less than 1 means that it is inelastic. This is the choice as when price elasticity increases, the price of an item must be decreased, in order to compete in the marketplace. The price elasticity formula states that Price Elasticity of Demand = (% Change in Quantity Demanded)/(% Change in Price). (Guo, 2012) This is a very simple formula that we can use when determining how elastic a price is in the marketplace.
Food, like the low-calorie microwavable meals, are elastic by its very nature. Thus, making this price inelastic can be a bit tricky. However, it can be done and extremely well, with just a little bit of preparation.
The types of food being offered are considered luxury items, as when the going gets tough, other cheaper food products can be purchased. This is why food items are elastic, because alternatives are available at more affordable prices. The substitute market should be researched here.
All prices grow more elastic over time, for as time goes on, substitutes can always be found. This is why it is so crucial to get
References: Berronne, P. (n.d.). Does stakeholder management have a dark side?. Does stakeholder management have a dark side?. Retrieved March 10, 2014, from http://www.academia.edu/184848/Does_stakeholder_management_have_a_dark_side Bogue, Marcus C Pricing strategies. (2013, November 15). Home. Retrieved March 10, 2014, from http://www.business.qld.gov.au/business/running/marketing/pricing-products-services/pricing-strategies The Economy and the Role of the Government Wales, P. (n.d.). About the AManaging the Complexity of Large, Capital-Intensive Projects. Area Development. Retrieved March 10, 2014, from http://www.areadevelopment.com/AssetManagement/may10/managing-complexity-capital-intensive-projects2954.shtml