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CP All Public Company Limited
Managerial Economics Report

By

Narumon Chaithanakawin Student ID 5649113
Warut Rungteeranont Student ID 5649114
Jirad Nirojthanarat Student ID 5649129
Kanyarat Wilaimethanun Student ID 5649130
Korrawit Pintong Student ID 5649172

Presented to Dr. Ing-Wei Huang

This report is part of BE 6401 Managerial Economics Subject.
Professional MBA Program, Semester 2, Year 2014

Table of Contents

1. Introduction
2. Company Overview (Root)
a. Company Profile
b. Business Model (where main profit come from)
c. Product Range
d. Market Share
e. Main Target Group (Demographic of customers)
f. Company Growth
3. Demand Analysis (Mong)
a. Variable Analysis and Identification
b. Regression Analysis
c. Elasticity Analysis
d. Conclusion of Regression Analysis Results
e. Recommended Business Strategies
4. Cost and Production Analysis (Ten)
a. Production Cost Analysis
i. Fixed Cost and Variable Cost Identification ii. Capital and labor Cost
b. How to achieve economies of Scales
c. How to achieve economies of Scope

5. Pricing Practices (Ten)
a. Cost-Plus Pricing
b. Bundling
6. Market Structure Analysis
a. Type of Market (Namm)
b. Market Share (Namm)
c. Competitors Analysis (Namm)
i. Direct and Indirect Competitors Identification
d. Profit Maximization Strategy(Namm)
e. SWOT Analysis (Namm)
f. Competitive Strategy
i. Product (Gift) ii. Price(Gift) iii. Location(Gift) iv. Promotion(Gift)
7. Macro Economics Factor Analysis (Ten)
a. Political
b. Inflation
c. Business Cycle

Introduction

Managerial economics is the foundation of business analysis and strategy. This subject explains how to make more profitable business decisions and why learning about economics theory is valuable in learning how to run a business. Managerial economics applies the most useful concepts and theories from two closely related areas of economics, microeconomics and industrial organization to create a systematic, logical way of analyzing business practices and tactic designed to get the most profit, as well as formulating strategies for sustaining or protecting these profits in the long run.
In this project report, we have chosen CP ALL Public Company Limited as a case study of how we can use the economics theories and knowledge to apply to the real world business. We began with data research on the company and raise examples of how the company uses economic theories and each of economic concepts to make its business become more profitable and how the company formulates real world business strategies for sustaining its profit while being competitive in the market for a long time. A part of this report also includes some recommended business strategies from our point of view that can improve the overall business of the company.

Cost and Production Analysis
Production Cost Analysis
1. Fixed Cost

2. Variable Cost Identification

How to achieve economies of Scales
1. Distribution
2. Purchasing economies of scale
3. Technology
4. Specialized and Division of Labor
How to achieve economies of Scope
1. Courter Service
2. Book Store/ Drug Store/ Bakery Shop
3. Advertising Media Provider
4. Shelf Display

Pricing Practices
Cost-Plus Pricing
Bundling

Macro Economics Factor Analysis
Political
Inflation
Business Cycle