Reference no: EM131744498

Assignment: Long-Term Investment Decisions

Assume that the low-calorie frozen, microwavable food company wants to expand, and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.

Use the Internet and Strayer databases to research government policies and regulation.

Write a six to eight page paper in which you:

1. Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products' response to a change in price less elastic. Provide a rationale for your response.

2. Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.

3. Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy. Provide two examples of government involvement in a similar market economy to support your response.

4. Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.

5. Suggest the substantive manner in which the company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide two examples of instances that support your response.

6. Use at least five quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

•Propose how differences in demand and elasticity lead managers to develop various pricing strategies.
•Analyze the economic impact of contracting, governance and organizational form within organizations.
•Use technology and information resources to research issues in managerial economics and globalization.
•Write clearly and concisely about managerial economics and globalization using proper writing mechanics

FIVE QUESTIONS IN ASSIGNMENT

Looking back on the two previous economic analyses and findings about the firm and the frozendinner industry answer each of the following questions.HERE IS WHERE I WANT EVERY ONE TO BEGIN. THE FIRM IS ABOVE THE SHUT-DOWN POINT BUT IS NOT BREAKING EVEN. THE ANALYSIS OF ASSIGNMENT 2, SHOW THAT DOING THE VERY BEST THE FIRM CAN IT IS LOSING MONEY. IT NEEDS TO RAISE PRICE AND IT NEEDS TO GET TO A MORE PROFITABLE POSITION.

1. Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow that will allow the firm to raise its prices. Second, identify any strategic opportunities in addition to a price increase that could increase company revenue. Discuss both in the context of a value-added marketing strategy.

2. Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on the company. Cite the major reasons for government involvement in a market economy.

3. Determine whether or not government regulation to ensure fairness in the lowcalorie, frozen microwavable food industry is needed. Cite the major reasons for government regulation of products and firms selling goods and services in the US. Provide two examples of government involvement in a similar market economy to support your response.

4. Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.

5. Suggest the substantive manner in which the company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide two examples of instances that support your response.