This document outlines an assignment for a risk management report. Students are asked to identify a business crisis scenario and analyze the strengths, weaknesses, opportunities, threats, and trends faced by its leaders. As a crisis leader, students are to recommend ways to ensure a clear view of risks across the organization, identify a risk management process to mitigate risks, and describe managing uncertainties in complex corporate environments. Students are to support their arguments using leadership theories and cite at least three scholarly sources in their report.

1. ECO-550 Assignment 2
the assignment is due at the end of week 6.
Please use the following information for Assignment 2:
1. Assume that your inverse demand equation from Assignment
1 is written as: P = 24.52 - 0.024Q. Then, the marginal revenue
(MR) equation for this demand equation will become: MR =
24.52 – 0.048Q.
Also assume that the price (P) found in Assignment 1 was =
$9.25.
2. Modify the cost functions given in the syllabus as follows:
TC = 160 + 10 Q + 0.0063Q2.
VC = 10Q + 0.0063Q2.
MC = 10 + 0.0126Q.
3. Continue with answering all questions as instructed below.
Make sure to use the MR = MC rule to find the firm’s profit-
maximizing price and output level. Compare the profit-
maximizing price which you find with the above-mentioned
$9.25 for answering the related question.
Assignment 2: Operations Decision
Due Week 6 and worth 300 points
Using the regression results and the other computations from
Assignment 1, determine the market structure in which the low-
calorie frozen, microwavable food company operates.
Use the Internet to research two (2) of the leading competitors
in the low-calorie frozen, microwavable food industry, and take
note of their pricing strategies, profitability, and their
relationships within the industry (worldwide).
Write a six to eight (6-8) page paper in which you:
1. Outline a plan that will assess the effectiveness of the market
structure for the company’s operations. Note: In Assignment 1,

2. the assumption was that the market structure [or selling
environment] was perfectly competitive and that the equilibrium
price was to be determined by setting QD equal to QS. You are
now aware of recent changes in the selling environment that
suggest an imperfectly competitive market where your firm now
has substantial market power in setting its own “optimal” price.
2. Given that business operations have changed from the market
structure specified in the original scenario in Assignment 1,
determine two (2) likely factors that might have caused the
change. Predict the primary manner in which this change would
likely impact business operations in the new market
environment.
3. Analyze the major short run and long cost functions for the
low-calorie, frozen microwaveable food company given the cost
functions below. Suggest substantive ways in which the low-
calorie food company may use this information in order to make
decisions in both the short-run and the long-run.
TC = 160+ 10Q + 0.0063Q2VC = 10Q + 0.0063Q2MC= 10+
0.0126Q
4. Determine the possible circumstances under which the
company should discontinue operations. Suggest key actions
that management should take in order to confront these
circumstances. Provide a rationale for your response. (Hint:
Your firm’s price must cover average variable costs in the short
run and average total costs in the long run to continue
operations.)
5. Suggest one (1) pricing policy that will enable your low-
calorie, frozen microwavable food company to maximize
profits. Provide a rationale for your suggestion.
(Hints:
· In Assignment 1, you determined your firm’s market demand
equation. Now you need to find the inverse demand equation.
Having found that, find the Total Revenue function for your
firm (TR is P x Q). From your firm’s Total Revenue function,
then find your Marginal Revenue (MR) function.
· Use the profit maximization rule MR = MC to determine your

3. optimal price and optimal output level now that you have
market power. Compare these values with the values you
generated in Assignment 1. Determine whether your price
higher is or lower.)
6. Outline a plan, based on the information provided in the
scenario, which the company could use in order to evaluate its
financial performance. Consider all the key drivers of
performance, such as company profit or loss for both the short
term and long term, and the fundamental manner in which each
factor influences managerial decisions.
(Hints:
· Calculate profit in the short run by using the price and output
levels you generated in part 5. Optional: You may want to
compare this to what profit would have been in Assignment 1
using the cost function provided here.
· Calculate profit in the long run by using the output level you
generated in part 5 and cost data in part 3 and assuming that the
selling environment will likely be very competitive. Determine
why this would be a valid assumption.)
7. Recommend two (2) actions that the company could take in
order to improve its profitability and deliver more value to its
stakeholders. Outline, in brief, a plan to implement your
recommendations.
8. Use at least five (5) 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

4. assignment are:
· Analyze short-run and long-run production and cost functions.
· Apply macroeconomic concepts to changes in global and
national economies and how they affect economic growth,
inflation, interest rates, and wage rates.
· Evaluate the profit-maximizing price and output level for
given operating costs for monopolies and firms in competitive
industries.
· 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.
RISK MANAGEMENT
Student’s Name
University Affiliation

5. Risk Assessment
It is almost immpossible to completely eliminate uncertainity in
the business environment, but as many business scholars have
pointed out, uncertainities can be managed by being
transformed into planned uncertainities (Conklin, 2002). Put in
other words, the aforementioned uncertanities are the risks that
are innevitably in existence in all business environments. When
venturng into a global business as planned by Allon
Investments, evaluating a country’s risks is imperative.
Determining the particular risk factors helps in denoting the
necessary measures that ought to be taken when venturing into a
business. This paper looks into a risk management situation by
Allon Investments. The entity had a slight crisis following its
decision to start up a branch of its business in a foreign
country-China. It therefore had to deal with issues in the
political, social, economic and capital platforms.
China is today seen as one of the most promising markets with
the potential to even surpass the currently ranked first economy
(Kramer & Porter, 2006). However, much care and caution
ought to be taken when partaking in businesses within the
country, or intending to do so. It is generally seen as having a
volatile business atmosphere, which impending dangers if the
necessary areas are not approached with due diligence. Entities-
such as Allon, seeking to set up base in the Chinese market will
have to take note of the underlying risk factors, their possible
solution and how best to address each one of them. Looking at
the case of Allon Investments, the potential risks that it most
likely face are in relation to the nation’s politics, its economy,
and cultural establishments.
The country’s political views have made transparency in the
business field a rather scarce attribute. Existing and newly
established businesses in China therefore have to rely on other
avenues through which they can be successfuly pursue their

6. endeavors. Guanxiwang is one such attribute, where business
relations are set up through networks of people who may know
one another. To a foreign enterpreneur such as Allon
Investment, this is an unknown concept and it will pose a great
risk of loss towards it before grasping the idea.
Issues such as trade policy and general economic instability
form another serious risk factor that Allon Investment needs to
take note of. It changes in monetary policies, fiscal, policies
and trade polices deeply affect its economic stability and in
turn, poses a potential risk to any investor seeking to set base in
the country. According to conducted studies, the Chinese people
have been confirmed to have very little-or no, distinction
between their cultural underpinnings and business undertakings.
This therefore means that Allon Investmeht will have to gain
sufficient insight on the people’s culture before setting up their
business in it. Failure to do so-as in the case of various other
businesses, would lead to down right failure of its venture.
One strength that the entity has in its venture is its adaptability
and ability to understand the local market. Allon has managed
to show its prowess in quickly adapting to foreign markets and
conforming to its particular demands. As much as this may be a
task that is largely demanding and tricky, Allon Investment has
managed to prove its competitors wrong over the years and take
the necessary steps in order to ensure that it fits into the market.
Looking at the given scenarion, this is nothing but another
chance for it to take firm measures, and penetrate the market.
Time factor is one that many businesses and individuals have
been unable to give due consideration over the years and as a
result, led to the ventures being futile. Allon’s idea to focus on
patience buidling and proper revenue expenditure come out as
its main opportunities. The organization still has a chance of
making it in the market if it manages to make proper use of the
opportunity that it has and invest in the most strategically
planned areas. There are numerous options from which the
entity could choose from; with the main problem being which
one is the best. It has sufficient capital to venture in the one it

7. deems fit, enabling it go over a number of hurdles.
The team with which one venture into business in the Chinese
market is another crucial factor. This comes out as Allon’s main
threat, as it has to start seeking the most loyal persons to deploy
in the foreign countries. Essentially, the businesses in the
Chinese market are conducted among networks of persons,
following the detrimental political influences. Newly
established organizations in the market-such as Allon
Investments, will have to quickly adjust to such systems of
operation and create their own networks. More often than not,
this is usually a tedious process that many organizzations fail
in, opting to exit the market or other more expensive
alternative. This is therefore the organization’s main risk
according to the conducted assessment of the intended market.
Organizations have to create such networks in the given time, or
transfer their own team members into the new markets. This is
also has its downside, as such individuals are never able to
properly bond with the local market.
In having a clear view on the risk factors, an effective approach
would be to have proper underlying strategies for the
identification of expected outcomes. This would therefore
require the entity to tabulate all possible risks and threats,
before having a seperate classification of these risks as either:
frequent, likely, occasional, seldom or improbable. These
categories would help the business entity in determining
whether the particular risk is a force to reckon with or a minor
issue that could be easily mitigated.
In managing the risk, I would have resorted to marketing tactics
that help in bringing more clients to the entity, so that they
proceed as a unit. Advertisments would therefore be the chosen
tactic.
The main purpose of advertisement is to promote a given
service or product offered by a company in the market. There
are a number of concep in marketing mix and this inlude the 7ps

8. of marketing, where promotion plays a very crucial role in
promoting a particular service or product , It focuses on the
communication between the customer and the business.
Promotional strategy is often refered to as a ‘pull’ tactic that
is employed in most marketing startegies and is considered key
contributing factor to business success. Having said this , the
marketing managers have the responsibility of choosing the
most appropriate business marketing communication to be
implimented inthe business advertising .Good business
advertisement startegy need to concentrate on the customer and
how to best contact the customer in addition to putting into
consideration the message to be relayedd to the customer.
Complex corporate environments are continuously seen as
difficult to operate in, hence the need to sufficiently shed light
on how best to manage them during uncertainties. Essentially,
these are business-oriented environments that revolve around
various transactions of the business nature. The key to
managing uncertainties in such markets is usually steadiness.
Entities are advised to ensure they remain steadfast during
periods of uncertainties while operating in complex corporate
environments. By doing this, such entities will be able to
surpass the first few hurdles related to such uncertainties before
having to adjust in order to address more complex issues.
Secondly, business entities are advised to make use of
professionals in dealing with such uncertainties. Complex
business environments may have uncertainties that are terribly
hard to handle, hence the need to bring in experts to help.
Having a set team of experts within the particular entity would
make the process much easier and possibly faster. However,
proper prior preparation is the best and ultimate way of dealing
with such uncertainties. It has been said time and again, that
serious entities ought to lay down measures for appropriate
handling of any emergent issues while in the course of business.
In a nutshell, it can be noted that any business venture is started
with the main intentions of prospering and outshining in its area
of operation. These achievements do not come easily and

9. therefore organizations have to put in lots of efforts in order to
achieve the competitive advantage. Risk is an inevitable aspect
of any business operations, hence the need to appropriately
conduct risk assessments. It is through such evaluations that the
organizations get to learn what they will most likely face in
regards to their particular venture, giving them ample time to
sufficiently comprehend the situation and develop the most
suitable alternatives.
The businesses’’ strategic plans are some of the critical
measures that have been put on the spotlight, these are some of
the major processes that give the business its main direction in
terms of its resources allocation as well as decision making in
an attempt to achieve the corporate business strategy. Business
at all-time should bear in mind and consider the most
appropriate action to be taken in order to implement its strategic
plan effectively. It is common that the strategic plan of any
business deals with three obligatory questions that sought what
need to be done, for who, and on how to surpass. Subsequently,
the threats, Opportunities, weaknesses, and strength of the
organizations are defined by assessing the businesses’ strategic
plan.
Reference
Cavanaugh, J. M., & Prasad, A. (1996). Critical theory and
management education: Some strategies for the critical
business. Rethinking management education, 76-93.
Conklin. D. (2002). Analyzing and Managing Country Risks.

10. The Organization Journal. 23(7).
Fogel. G. (2010). Business Environment in China: Economic,
Political and Cultural Factos. Journal Of Emerging Knowledge
On Emerging Markets. 34(76). 23-89
Kramer. M & Porter. M. (2006). Strategy and Society: The Link
Between Competitive Advantage and Corporate Social
Responsibility. Wall Street Journals. 71:3,
Yannoupoous. P. (2011). Defensive and Offensive Market
Strategies for Market Success. Wall street Journal of Business.
2:13
RISK MANAGEMENT
Running Head: RISK MANAGEMENT
Crisis Leadership or Risk Management Report
Organizations are susceptible to an array of crises. There are
different types of threats with no “one way” to manage them.
This reality presents multiple business challenges to those in
leadership positions. Each manager is responsible for managing
risks within their own sphere of operations and area of
responsibility. To this end, one must understand that crisis
leadership is a process. For this assignment, you are required to
identify a business crisis issue that interests you and develop a
report.
Directions:
Address the following in your report:
· Identify and describe a business crisis situation and the main
leaders involved. It could be one that you have experienced or
have read about. Be sure to include a discussion of ethical
implications.

11. · Assess the strengths, weaknesses, opportunities, threats, and
industry trends (SWOTT) the company faced while its leaders
were managing the crisis.
· Assume you are a leader; recommend ways you could ensure
that you have a clear view of risks across the organization in
regard to the given scenario.
· Identify a risk management process you would employ to
mitigate risks in regard to the given scenario along with a
rationale (utilize contemporary and classical leadership theories
in support).
· Recommend what you would do to ensure the risk management
process is working the way you expect in regard to the scenario.
· Describe ways to identify and manage uncertainties in a
complex corporate environment (utilize contemporary and
classical leadership theories to support your argument).
Utilize at least three scholarly sources (in addition to your
textbook) to complete your research, referencing the sources
within the text and at the end in a reference list.
Write a 6–8-page report in Word format. Apply APA standards
to citation of sources. Use the following file naming
convention: LastnameFirstInitial_M3_A2.doc.
Make sure you write in a clear, concise, and organized manner;
demonstrate ethical scholarship through accurate representation
and attribution of sources; and display accurate spelling,
grammar, and punctuation.