In this assignment, you will write an essay analyzing one of the following scenarios. You will turn in a single PDF.
Congratulations! The investors decided to invest their money with you, and it is now one year later. For the past year, your company has developed well and your product has sold rather successfully. However, world events impact small businesses like yours everyday. Understanding the best and most appropriate manner by which to respond to such challenges is key to ensuring a successful long-term business.
After the first year, your business must deal with one of the following events. Read through the scenarios and select one to respond to. Research your industry and how current entrepreneurs in that industry deal with such incidences, and respond in a well-developed essay by analyzing the proper decisions needed to respond to the situation. Remember, you want to minimize costs as much as possible in order to stay afloat. Additionally, the kind of market your company is in and the form of competition you are a part of will somewhat dictate the decisions you make.
Choose A Scenario
Scenario One
The government institutes a new price ceiling which forces you to sell your product below where the marginal revenue intersects the marginal cost. Remember that your fixed costs remain the same. In a report to investors, explain how the new price ceiling is impacting profits and costs. Make sure to explain what your fixed costs are and how the price ceiling has diminished revenue, but also what steps you will take to make sure that the average variable costs do not exceed revenue. Develop and explain three different strategies you will use to help your company stay afloat.
Scenario Two
A global pandemic forces your business to shut down due to safety concerns and regulations enacted by the government that require all businesses to shut down for a six-week period. Demand for your product has also shifted to the left and your marginal costs now exceed the marginal revenue. Remember that your fixed costs remain the same. In a report to investors, explain how the shutdown impacted production and distribution, as well as profits and costs. Make sure to explain what your fixed costs are and how the shutdown has diminished revenue, as well as what steps you will take to make sure that the average variable costs do not exceed revenue. Develop and explain three different strategies you will use to help your company stay afloat.
Scenario Three
The government has imposed a new minimum wage law that has increased minimum wage by 3%. In a report to investors, explain how the new law is impacting the marginal cost, average variable cost, and total costs, as well as production, distribution, and profits. Make sure to explain what your fixed costs are and how the increase in minimum wage has increased your costs, as well as what steps you will take to make sure that the average variable costs do not exceed revenue. Develop and explain three different strategies you will use to help your company stay afloat.
This assignment should be at least 750 words and include an introduction that responds directly to the situation, explains the background, and provides context. Your response to the scenario should be at least three well-developed paragraphs and it needs to end with a strong conclusion that explains specifically how your ideas will help your company stay afloat. Be sure to include all appropriate graphs and charts.
Your paper should be MLA formatted and include your bibliography, which should also be in MLA format. You need to reference at least three to five additional credible sources to help support your reasoning.
Important:
- Do NOT put your name on the document. Your assignment will be anonymously graded.
- Label your paragraphs by placing the paragraph numbers in brackets at the beginning of the paragraph like this:
Date the paper is submitted (month day, year)
Composition Title
[1] This is the first line of the first paragraph. It should be indented. Subsequent lines are
not indented but the first line of any subsequent paragraph is indented.
[2] The beginning of paragraph two should be indented as the first sentence to the
paragraph. Subsequent lines are not indented.