Running head: Microeconomic Analysis on The Procter and Gamble Company 1
Microeconomic Analysis on The Procter and Gamble Company 7MILESTONE 1
Abstract
The Procter and Gamble Company is an American multi-national consumer goods corporation that was found in 1837. The company makes many different products and have been structured into ten different categories. The category that I will be doing my microeconomic analysis on is Family Care because of the product I chose to elaborate on. The analysis will be on Procter and Gamble’s paper products Bounty, Charmin and Puffs. It will show what key factors of supply and demand affect the production of the product of the company.
Keywords: Procter and Gamble, demand, supply, analysis, product
Milestone One Part One
Pulp is one of the main resources used to produce the paper towels and tissue. “Procter & Gamble today announced it's planning to raise prices on a lot of its products, including Bounty paper towels and Puffs tissues. One reason for those increases? P&G is having to pay a lot for wood pulp, which is basically what paper towels, diapers and toilet paper are made from.” (Kim,2018) The price of pulp is high in demand and the price of it increased. “If the price of the commodity rises, then it is less demanded by the people, because people finds less utility in the product, and at that much price they can buy the other products having more utility for them. In this way, demand decreases while the supply increases.” (Says, 2017) Due to a high demand in pulp, Procter and Gamble had to increase the price of their products. Even though Procter and Gamble had to increase the price of their products the demand for their products did not decrease as much. There products were still in competition with their competitors. “Price elasticity is a measure of how consumers react to the prices of products and services. Normally demand declines when prices rise, but depending on the product/service and the market, how consumers react to a price change can vary.” (What is price elasticity)“In 2014, the average consumer unit in the United States spent approximately 124 U.S. dollars on paper towels. A survey by Harris Interactive, which was conducted online in November 2014, revealed that 44 percent of Americans purchased name-brand paper products. Bounty Select-A-Size was the second leading paper towel brand in the United States (behind private label) in 2015 with a sales share of over 24 percent. Out of the top ten paper towel brands of 2015, Procter & Gamble (P&G) owned four of them; with the vendor generating sales of over 2.15 billion U.S. dollars.”(Sales)
Non-Price Factors: Demand
Procter and Gamble use advertising as one of the non-price factors that affect the demand. “Branding. Sellers can use advertising, product differentiation, product quality, customer service, and so forth to create such strong brand images that buyers have a strong preference for their goods.” (The non-price determinants of d.
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Running head Microeconomic Analysis on The Procter and Gamble Com.docx
1. Running head: Microeconomic Analysis on The Procter and
Gamble Company 1
Microeconomic Analysis on The Procter and Gamble Company
7MILESTONE 1
Abstract
The Procter and Gamble Company is an American multi-
national consumer goods corporation that was found in 1837.
The company makes many different products and have been
structured into ten different categories. The category that I will
be doing my microeconomic analysis on is Family Care because
of the product I chose to elaborate on. The analysis will be on
Procter and Gamble’s paper products Bounty, Charmin and
Puffs. It will show what key factors of supply and demand
affect the production of the product of the company.
Keywords: Procter and Gamble, demand, supply, analysis,
product
Milestone One Part One
Pulp is one of the main resources used to produce the paper
towels and tissue. “Procter & Gamble today announced it's
planning to raise prices on a lot of its products, including
Bounty paper towels and Puffs tissues. One reason for those
increases? P&G is having to pay a lot for wood pulp, which is
basically what paper towels, diapers and toilet paper are made
from.” (Kim,2018) The price of pulp is high in demand and the
price of it increased. “If the price of the commodity rises, then
it is less demanded by the people, because people finds less
utility in the product, and at that much price they can buy the
other products having more utility for them. In this way,
demand decreases while the supply increases.” (Says, 2017) Due
to a high demand in pulp, Procter and Gamble had to increase
2. the price of their products. Even though Procter and Gamble had
to increase the price of their products the demand for their
products did not decrease as much. There products were still in
competition with their competitors. “Price elasticity is a
measure of how consumers react to the prices of products and
services. Normally demand declines when prices rise, but
depending on the product/service and the market, how
consumers react to a price change can vary.” (What is price
elasticity)“In 2014, the average consumer unit in the United
States spent approximately 124 U.S. dollars on paper towels. A
survey by Harris Interactive, which was conducted online in
November 2014, revealed that 44 percent of Americans
purchased name-brand paper products. Bounty Select-A-Size
was the second leading paper towel brand in the United
States (behind private label) in 2015 with a sales share of over
24 percent. Out of the top ten paper towel brands of
2015, Procter & Gamble (P&G) owned four of them; with the
vendor generating sales of over 2.15 billion U.S.
dollars.”(Sales)
Non-Price Factors: Demand
Procter and Gamble use advertising as one of the non-price
factors that affect the demand. “Branding. Sellers can use
advertising, product differentiation, product quality, customer
service, and so forth to create such strong brand images that
buyers have a strong preference for their goods.” (The non-price
determinants of demand) Over the years Bounty advertising
slogan have been known as the the “Quicker Picker Upper”. In
2000 Charmin launched the “bear” to be the face for its
advertising brand. P&G spends a lot of money on advertising
their products for consumers to potentially purchase them.
“Procter & Gamble is also one of the biggest spenders in the
world when it comes to its advertising campaign. In 2016, the
company spent approximately 7.24 billion U.S. dollars. In the
United States alone, Procter & Gamble spent 121 million U.S.
dollars promoting its Cover Girl brand in 2015.” (Duncan)
3. Available income of consumers is the second non-price factor
that affect the demand for Procter and Gamble. “Available
income. If the amount of available buyer income changes, it
alters their propensity to purchase. Thus, if there is an economic
boom, someone is more likely to buy, irrespective of price.”
(The non-price determinants of demand) As long as consumers
have income available to purchase what they want they can
spend a little extra. If something affects a consumer income like
the recession that can affect the demand for the product.
Non-Price Factors: Supply1
As stated earlier pulp is raw material for the paper products.
Input prices is one of the non-price factors that affect the
supply for Bounty, Charmin, and Puff.
The Family Care Products at Procter and Gamble. “Input Prices-
If the price of raw materials used in the production of a product
goes down, then S will increase, i.e., shift to the right. If the
price of inputs increase then S will decrease, shift to the left.”
“Since 2016, market prices for hardwood pulp have risen 60%
and 20% for softwood. P&G sources both types from the United
States and Canada and uses them to make tissue papers and
diapers. Growing global demand, particularly in China, and
tight supply have pushed up prices, said Arnaud Franco, a
senior analyst at the Pulp and Paper Products Council.”
(Meyersohn, N. 2018) Government Policies is the second non-
price factor that affects the supply. “Government policies can
have a significant impact on supply. For example: If the
government imposes a subsidy on the good, then S increases
while a tax on the goodwill has the opposite effect of decreasing
S.”( The Law of Supply, 2017) “The Trump administration has
placed 10% on tariffs on Canadian paper and Canada responded
by enacting 10% levies on several paper products, including
toilet paper. But Franco said tariffs were not currently
impacting prices. If China, however, decided to put tariffs on
4. market pulp, US producers could get hurt, Franco said.”
(Meyersohn, N.,2018)Industry and Market Equilibrium.
Bounty and Charmin are brands of Procter and Gamble and this
company is in the consumer industry. The products are marketed
under their family care brand. Paper Towels and Tissue are
household products but in actuality they are used in every day
life every where you go. Over the last forty years the use of
paper towels has grown more popular. Within 24 hours out of
your day over 75% people will use a form paper product in that
day. This help Procter and Gamble expand its business in their
manufacturing plants. “In 2015, the company's sales amounted
to 69.4 billion U.S. dollars worldwide.
This revenue was generated as a result of Procter & Gamble's
numerous billion U.S. dollar brands within the consumer goods
industry.” (Duncan) P&G is huge in the advertising industry as
well with their products.
Market Equilibrium is “ the point where quantity
demanded and quantity supplied is equal at a given time and
price. There is no surplus or shortage in this situation and the
market would be considered stable. In other words, consumers
are willing and able to purchase all of the products that
suppliers are willing and able to produce.” (What is Market
Equilibrium) This is a win win situation for both parties.
Procter and Gamble was happy because the consumer was able
to purchase their products and the consumers where happy they
where able to purchase the products. Procter and Gamble
introduced new products of the Bounty paper towel. Bounty
Essential and Bounty Select A. They are different brands of the
Bounty paper towels but it is still Bounty and the demand and
the supply for the product is at a balance.
Prediction and Decision.
Being at a constant state is all good but as a company like
Procter and Gamble they have to make a profit off of their
products. When the demand of material hitting the company I
predict that will make the price of materials go up and that will
5. make the product go up. I believe that Bounty and Charmin are
one Procter and Gamble leading brands for the the company. If
the supply of the product was decrease, I believe that would be
a problem. If the product was increased by a small percentage,
it should not affect their sales drastically.
References
Duncan, E. (n.d.). Topic: Procter & Gamble. Retrieved January
13, 2019, from https://www.statista.com/topics/1625/procter-
and-gamble/
Kim, J. (2018, July 31). Strong demand for wood pulp driving
diaper, paper towel prices higher. Retrieved January 12, 2019,
from
https://www.marketplace.org/2018/07/31/sustainability/strong-
demand-wood-pulp-driving-diaper-paper-towel-prices-higher
Meyersohn, N. (2018, July 31). Pampers and Charmin are
getting more expensive. Retrieved January 12, 2019, from
https://money.cnn.com/2018/07/31/news/companies/pampers-
charmin-bounty-puffs-procter-and-gamble/index.html
Sales of the leading paper towel brands of the U.S. 2017 |
Statistic. (n.d.). Retrieved January 12, 2019, from
https://www.statista.com/statistics/188691/top-paper-towel-
brands-in-the-united-states/
S, S., Says, P., & Says, M. G. (2017, April 07). Difference
Between Demand and Supply (with Comparison Chart).
Retrieved January 12, 2019, from
https://keydifferences.com/difference-between-demand-and-
supply.html
The Law of Supply. (2017, November 09). Retrieved January
12, 2019, from https://www.intelligenteconomist.com/supply/
The non-price determinants of demand. (n.d.). Retrieved
6. January 12, 2019, from
https://www.accountingtools.com/articles/what-are-the-non-
price-determinants-of-demand.html
This statistic shows the brands of paper towels used most often
in the United States in 2018. The data has been calculated by
Statista based on the U.S. Census data and Simmons National
Consumer Survey (NHCS). According to this statistic, 153.31
million Americans used Bounty in 2018.
What is price elasticity? Definition and meaning. (n.d.).
Retrieved January 12, 2019, from
https://marketbusinessnews.com/financial-glossary/price-
elasticity-definition-meaning/
.
JUS 101 Module Three Short Paper Guidelines and Rubric
Select a specific department you might want to consider for
employment opportunities in the future. Please choose from
either the police department,
department of corrections, or a probation officer. Then, in a
short paper, describe the Hiring Process for your chosen
department and the Purpose of each step
of the process. The hiring process may differ depending on
where you are located. Finally, provide an Overview of your
selected profession by briefly discussing
the size and type of department you identified. In your
department overview, you may also include their specific
7. requirements, training required, work
environment, and responsibilities for the profession (police
officer, corrections officer, or probation officer) you chose for
this assignment and for the state in
which you are located.
Some departments require a degree and some a high school
diploma, some hire at age 18, and some at 21. Some
departments require their recruits to take a lie
detector test before being hired. Some academies are overnight
academies, while others are daily academies. The time spent at
the different academies may vary.
It is these differences between the hiring and training processes
that will make your paper unique.
Guidelines for Submission: Your paper must be submitted as a
1-3 page Microsoft Word document with double spacing, 12-
point T imes New Roman font, one-
inch margins, and at least two sources cited in APA format.
Critical Elements Exemplary (100%) Proficient (85%) Needs
Improvement (55%) Not Evident (0%) Value
Hiring Process
Submission meets “Proficient”
criteria and is supported by
scholarly evidence
Submission explains the
chronology and steps of the
hiring process for the police
8. department, department of
corrections, or a probation
officer
Submission provides the
chronology of the steps of the
hiring process for the police
department, but does not
include an explanation of the
purpose of each step
Submission does not provide
the steps of the hiring process
of the police department
30
Purpose
Submission meets “Proficient”
criteria and is supported by
scholarly evidence
Submission provides the purpose
of each step in the hiring process
for the police department,
department of corrections, or a
probation officer
Submission provides the
chronology of the steps of the
hiring process for the police
department, but does not
include an explanation of the
purpose of each step
9. Submission does not provide
the steps of the hiring process
of the police department
30
Department Overview Submission meets “Proficient”
criteria and is supported by
scholarly evidence
Submission provides an
overview of the department
by describing the size and
type of the department
Submission provides a brief
overview of the department
Submission does not provide an
overview of the department
30
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
10. a professional and easy-to-read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Earned Total 100%
MBA 502 Final Project Part I Guidelines and Rubric
Overview
There are two parts to the final project in this course. For your
11. first project, you will produce an individual microeconomic
analysis paper related to a publicly
traded company that you will choose from a given list. This
paper will equip you with the knowledge and skills required to
analyze the effects of microeconomic
factors on a company’s supply and demand, product market,
production and costs, competitive environment, business
strategy, and financial performance.
(For your second project, you will produce an individual
macroeconomic analysis paper related to the publicly traded
company chosen for the first project. The
focus of the macroeconomic analysis will be on the United
States. You will come away with the knowledge and skills
necessary to evaluate how macroeconomic
conditions impact a product’s or service’s supply and demand as
well as a company’s financial performance. For details of that
project, please review the Final
Project Part II Guidelines and Rubric document.)
In today’s business world, it is vital for companies to carefully
assess their markets and competitive environment and operate
efficiently. A critical skill for
business managers is the ability to effectively assess the effects
of microeconomic factors on the supply and demand of a
company’s products and services as
well as on a company’s business strategy and financial
performance.
For this first project, you will produce a microeconomic
analysis related to a publicly traded company chosen from the
following list:
12. -Mart
Alternatively, you may select a company of your choosing with
instructor approval. Instructor approval should be secured
through university email. To begin your
analysis, you will choose a type of product or service offered by
your chosen company, ensuring that this product or service
relates to one specific sector in which
the company operates (e.g., Apple operates in the tablet
industry and the smartphone industry). Next, you will apply
microeconomic concepts as well as gather
and analyze information related to your chosen company’s
supply, demand, market equilibrium, production, costs, and the
market structure of the specific
industry selected. Finally, you will assess the effects of the
industry’s market structure on the company’s business strategy
and financial performance.
The project is divided into two milestones, which will be
submitted at various points throughout the course to scaffold
learning and ensure quality final
submissions. These milestones will be submitted in Modules
Three and Five. Final Project Part I will be submitted in Module
Seven.
This project addresses the following course outcomes:
http://www.apple.com/?afid=p238%7CseIEs444j-
dc_mtid_1870765e38482_pcrid_94433985847_&cid=aos-us-
14. Specifically, the following critical elements must be addressed:
I. Overview: Provide an overview consisting of a brief
description of the chosen company and your chosen product or
service, including the industry the
product or service falls under. You should include key details
about the company, including its main products and/or services,
number of employees, and
annual sales.
II. Supply, Demand, and Market Equilibrium
a) Determine the extent to which the supply and demand of your
chosen product or service are sensitive to changes in price by
applying the
concept of elasticity. In other words, what is the price elasticity
of supply or demand for your product or service?
b) Select two nonprice factors that impact the demand of your
chosen product or service. Justify your selections.
c) Select two nonprice factors that impact the supply of your
chosen product or service. Justify your selections.
d) Define the industry related to your chosen product or service
and the market equilibrium associated with the product or
service.
e) Predict the effect of changes in supply and demand on the
market equilibrium.
f) Based on the predicted changes, what decisions related to
supply and demand for your product or service would you
make?
III. Production and Costs
15. a) Describe three key inputs (or factors of production) and fixed
and variable costs involved in the production of your chosen
product or service.
One example of an input is machines, which are fixed costs.
Keep in mind that all inputs will either fall under fixed or
variable cost.
b) Analyze the factors that impact your choice of inputs to
produce the chosen product or service. For example, how would
a change in the price of
raw materials impact the combination of inputs?
c) Based on this analysis, what production decisions would you
make? Be sure to support your decisions with examples or data.
IV. Market Structure
a) Determine whether the market structure of the industry in
which your chosen company operates is perfectly competitive,
monopolistically
competitive, oligopolistic, or monopolistic. Justify your
response.
b) Assess how the type of market structure impacts your chosen
company’s financial performance as measured by performance
variables over the
past three years. Support your response with data and graphs
illustrating two performance variables of your choosing (e.g.,
sales, net income,
stock price) over time.
16. c) How would possible changes in the industry’s market
structure impact your chosen company’s business strategy in the
future? Keep your
company’s current business strategy in mind in your response.
Milestones
Part I Milestone One: Supply, Demand, and Market Equilibrium
In Module Three, you will submit the supply, demand, and
market equilibrium component of your microeconomic analysis
paper. This milestone should be a 2–3-
page paper structured as follows: First, it describes the price
elasticity of supply or demand for your product or service.
Second, it explains how two nonprice
factors impact the demand of your chosen product or service.
Third, it explains how two nonprice factors impact the supply of
your chosen product or service.
Fourth, it defines the industry and the market equilibrium
associated with the product or service. Fifth, it predicts the
effect of changes in supply and demand on
the market equilibrium. Finally, it describes the decisions
related to supply and demand for the product or service that you
would make based on the predicted
changes in supply and demand on the market equilibrium. This
milestone will be graded with the Part I Milestone One Rubric.
Part I Milestone Two: Production and Costs
In Module Five, you will submit the production and costs
component of your microeconomic analysis paper. This
milestone should be a 3–4-page paper
structured as follows: First, it describes three key inputs (or
factors of production) and fixed and variable costs involved in
the production of your chosen product
or service. Second, it analyzes the factors that impact your
choice of inputs to produce the chosen product or service.
Third, it examines the production decisions
17. that you would make based on the analysis of the factors
impacting the choice of inputs to produce the chosen product or
service. This milestone will be graded
with the Part I Milestone Two Rubric.
Part I Final Submission: Microeconomic Analysis Paper
In Module Seven, you will submit your microeconomic analysis
paper. It should be a complete, polished artifact containing all
of the critical elements of Final
Project Part I, including Sections I and IV, which were not
covered in the milestones. The final submission should first
determine whether the market structure of
the industry in which your chosen company operates is perfectly
competitive, monopolistically competitive, oligopolistic, or
monopolistic. Justify your response.
Second, it should assess how the type of market structure
impacts your chosen company’s financial performance as
measured by performance variables over the
past three years. Support your response with data and graphs
illustrating two performance variables of your choosing (e.g.,
sales, net income, stock price) over
time. Finally, your paper should answer the following question:
How would possible changes in the industry’s market structure
impact your chosen company’s
business strategy in the future? Keep your company’s current
business strategy in mind in your response. The final
microanalysis paper should reflect the
incorporation of feedback gained thus far in the course. This
submission will be graded with the Final Project Part I Rubric.
18. Final Project Part I Rubric
Guidelines for Submission: Your microeconomic analysis paper
should adhere to the following formatting requirements: 5–6
pages, double-spaced, using 12-
point Times New Roman font and the most current version of
APA formatting.
Critical Elements Exemplary (100%) Proficient (90%) Needs
Improvement (70%) Not Evident (0%) Value
Overview Meets “Proficient” criteria and
description expertly balances
key detail with brevity
Briefly describes the chosen
company, product or service,
and associated industry,
including key details
Describes the chosen company,
product or service, and
associated industry but has
gaps in accuracy or key details
or is wordy
Does not describe the chosen
company, product or service,
and associated industry
5
Supply, Demand,
and Market
Equilibrium:
19. Elasticity
[MBA-502-01]
Meets “Proficient” criteria and
analysis shows keen insight into
the factors impacting supply
and demand
Determines extent to which
supply and demand of chosen
product or service are sensitive
to changes in price by applying
the concept of elasticity
Determines extent to which
supply and demand of chosen
product or service are sensitive
to changes in price by applying
the concept of elasticity, but
with gaps in accuracy or detail
Does not determine extent to
which supply and demand of
chosen product or service are
sensitive to changes in price by
applying the concept of
elasticity
7.5
Supply, Demand,
and Market
Equilibrium:
Nonprice Factors for
Demand
20. [MBA-502-01]
Meets “Proficient” criteria and
shows keen insight into how
nonprice factors impact the
demand of products or services
Selects and logically justifies
two nonprice factors impacting
the demand of chosen product
or service
Selects two nonprice factors
impacting the demand of
chosen product or service,
justifying selections but
selection(s) are inaccurate or
justification is illogical
Does not select two nonprice
factors impacting the demand
of chosen product or service
and justify selections
7.5
Supply, Demand,
and Market
Equilibrium:
Nonprice Factors for
Supply
[MBA-502-01]
21. Meets “Proficient” criteria and
shows keen insight into how
nonprice factors impact the
supply of products or services
Selects and logically justifies
two nonprice factors impacting
the supply of chosen product
or service
Selects two nonprice factors
impacting the supply of chosen
product or service, justifying
selections but selection(s) are
inaccurate or justification is
illogical
Does not select two nonprice
factors impacting the supply of
chosen product or service and
justify selections
7.5
Supply, Demand,
and Market
Equilibrium:
Industry and Market
Equilibrium
[MBA-502-02]
Meets “Proficient” criteria and
details demonstrate a nuanced
understanding of the
22. characteristics of the industry
and market equilibrium
Accurately defines the industry
and the market equilibrium
associated with the product or
service
Defines the industry and the
market equilibrium associated
with the product or service but
with gaps in accuracy
Does not define the industry
and the market equilibrium
associated with the product or
service
7.5
Supply, Demand,
and Market
Equilibrium: Predict
[MBA-502-02]
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of the effects of
changes in supply and demand
on the market equilibrium
Predicts effect of changes in
supply and demand on the
market equilibrium
23. Predicts effect of changes in
supply and demand on the
market equilibrium but with
gaps in accuracy or necessary
detail
Does not predict effect of
changes in supply and demand
on the market equilibrium
7.5
Supply, Demand,
and Market
Equilibrium:
Decisions
[MBA-502-02]
Meets “Proficient” criteria and
decisions show keen insight
into the implications of changes
in supply and demand for
business decisions
Proposes decisions related to
supply and demand for product
or service based on predicted
changes
Proposes decisions related to
supply and demand for product
or service based on predicted
24. changes but with gaps in logic
or detail
Does not propose decisions
related to supply and demand
for product or service based on
predicted changes
7.5
Production and
Costs: Inputs and
Costs
[MBA-502-03]
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of the inputs
and types of costs involved in
the production of products or
services
Describes three key inputs and
fixed and variable costs
involved in the production of
chosen product or service
Describes three key inputs and
fixed and variable costs
involved in the production of
chosen product or service but
with gaps in accuracy or detail
Does not describe three key
inputs and fixed and variable
25. costs involved in the
production of chosen product
or service
7.5
Production and
Costs: Analyze the
Factors
[MBA-502-03]
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of factors that
impact inputs in the production
of products or services
Analyzes factors that impact
the choice of inputs to produce
chosen product or service
Analyzes factors that impact
the choice of inputs to produce
chosen product or service but
with gaps in accuracy or detail
Does not analyze factors that
impact the choice of inputs to
produce chosen product or
service
7.5
Production and
Costs: Decisions
26. [MBA-502-03]
Meets “Proficient” criteria and
decisions show keen insight
into implications of production
analysis for business decisions
Proposes appropriate
production decisions based on
analysis, supporting response
with examples or data
Proposes production decisions
based on analysis, supporting
response with examples or data
but decisions are not
appropriate based on analysis
or lack detail or support
Does not propose production
decisions based on analysis
7.5
Market Structure:
Determine
[MBA-502-04]
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of the
characteristics of market
structures
Determines the market
27. structure of the chosen
company’s industry and
logically justifies response
Determines the market
structure of the chosen
company’s industry and
justifies response but
determination is inaccurate or
justification is illogical
Does not determine the market
structure of the chosen
company’s industry and justify
response
7.5
Market Structure:
Financial
Performance
[MBA-502-04]
Meets “Proficient” criteria and
shows keen insight into the
effects of the market structure
on the company’s financial
performance
Logically assesses how type of
market structure impacts
chosen company’s financial
performance, supported by
data and graphs illustrating
performance variables over
28. time
Assesses how type of market
structure impacts chosen
company’s financial
performance, supported by
data and graphs illustrating
performance variables over
time but assessment has gaps
in accuracy, detail, or support
Does not assess how type of
market structure impacts
chosen company’s financial
performance, supported by
data and graphs illustrating
performance variables over
time
7.5
Market Structure:
Possible Changes
[MBA-502-04]
Meets “Proficient” criteria and
provides keen insight into how
changes in industry’s market
structure impact business
strategies
Logically projects how possible
29. changes in industry’s market
structure would impact
company’s business strategy
Projects how possible changes
in industry’s market structure
would impact company’s
business strategy but with gaps
in logic or detail
Does not project how possible
changes in industry’s market
structure would impact
company’s business strategy
7.5
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented
in a professional and easy-to-
read format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
30. main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
5
Total 100%
MBA 502 Part I Milestone Two Guidelines and Rubric
For this assignment, due in Module Five, you will submit the
production and costs component of your microeconomic
analysis paper. This milestone should be a
3–4-page paper structured as follows: First, it describes three
key inputs (or factors of production) and fixed and variable
costs involved in the production of your
chosen product or service. Second, it analyzes the factors that
impact your choice of inputs to produce the chosen product or
service. Third, it examines the
production decisions that you would make based on the analysis
of the factors impacting the choice of inputs to produce the
chosen product or service.
Specifically, the following critical elements must be addressed:
31. I. Production and Costs
a) Describe three key inputs (or factors of production) and fixed
and variable costs involved in the production of your chosen
product or service.
One example of an input is machines, which are fixed costs.
Keep in mind that all inputs will either fall under fixed or
variable cost.
b) Analyze the factors that impact your choice of inputs to
produce the chosen product or service. For example, how would
a change in the price of
raw materials impact the combination of inputs?
c) Based on this analysis, what production decisions would you
make? Be sure to support your decisions with examples or data.
Guidelines for Submission: Part I Milestone Two should adhere
to the following formatting requirements: 3–4 pages (not
including cover page or appendix),
double-spaced, using 12-point Times New Roman font and the
most current guidelines for APA formatting.
Critical Elements Proficient (100%) Needs Improvement (75%)
Not Evident (0%) Value
Production and Costs:
Inputs and Costs
Describes three key inputs and fixed
and variable costs involved in the
production of chosen product or
service
32. Describes three key inputs and fixed
and variable costs involved in the
production of chosen product or
service but with gaps in accuracy or
detail
Does not describe three key inputs
and fixed and variable costs involved
in the production of chosen product
or service
30
Production and Costs:
Analyze the Factors
Analyzes factors that impact the
choice of inputs to produce chosen
product or service
Analyzes factors that impact the
choice of inputs to produce chosen
product or service but with gaps in
accuracy or detail
Does not analyze factors that impact
the choice of inputs to produce
chosen product or service
30
Production and Costs:
Decisions
33. Proposes appropriate production
decisions based on analysis,
supporting response with examples
or data
Proposes production decisions based
on analysis, supporting response
with examples or data but decisions
are not appropriate based on analysis
or lack detail or support
Does not propose production
decisions based on analysis
30
Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main ideas
Submission has critical errors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
10