Beat the Market Game Report Essay
ECONOMIC FOR MANAGERS
BTM Game Analysis Report
Firm 1 Binal Patel Kun Liao Ling Xiao Lei Wella Mohibi Yi xin Huang
1) Table of Contents
2) Introduction and Summary Our performance in BTM game Market structure analysis Strategies of our firm 3) Analysis of our problems in the BTM game MC and MR Plant size Price elasticity Training and process improvement advertising, product development and E-commerce 4) How to improve our performance in the future Macroeconomic analysis Competitor analysis Payoff matrix Kinked demand
1. Introduction and Summary
Our performance in BTM game Our …show more content…
So our strategy was to focus more on equalizing the MR and MC to maximize the profits rather than following the trend of price change in the market. Also, we tried to make our price close to the estimated market price and then adjust the expenditures of advertising, product development and E-commerce to help to get our target demand. In the last 4 quarters, we increased our budget for advertising, product development and E-commerce to promote our sales, to compensate for our high price. How to make a decision in the BTM game.
Playing Beat the market game made our concepts more clear regarding the
economic theories related to the Oligopoly market structure. The game required us to predict the price and corresponding demand by studying the market condition and the strategies used by other firms specially the top three firms. The important parts of the decision making involved the a deliberation with the team mates to decide the budgets related to increasing or not increasing the plant size, Advertisement, Product development, E-commerce enhancements, process improvements and training. All these parameters are also an important predictor of the demand.
The strategy used by our firm was to predict the demand based on the Marginal cost curve, the point on the curve (for a particular plant size), where