Each student is required to perform a research on a project that involves writing a report (25-30 pages) on a company listed on the Mergent Online Database. The project involves three parts, namely,
The demand Analysis of a Company [Chapters 2, 3 and 6]
The cost analysis of the same company [Chapters 8 and 9], and
The profit analysis of the same company [Chapters 11, 12, and 13].
Details of the project will be discussed throughout the semester.
All calculations for the project should be done in excel and all excel outputs have to be submitted along with the project for evaluation.
In writing, submit the name of the company (publicly traded) within the first three weeks of classes for approval.
The project (using the tools and techniques given in Chapters 2, 3, 6, 8, 9, 11, 12, and 13 of the textbook) and its subsequent report are based on the complete economic analysis of a company and its available current financial data. The students are required to evaluate the company based on the trends in its demand for and the price of the products of the company, the cost incurred, and the profits generated over time and evaluate them against the industry standard or a comparable firm. Details, including the selection of the company (for evaluation), will be discussed throughout the semester. In general, the analysis is done in the following steps:
Evaluate the demand function and revenue function of the company by using the company information. Also, calculate the price- and cross-elasticities (calculated using information from the company of choosing and a comparable firm) of demand for the products of the company.
Use Regression Analysis in EXCEL to estimate the demand function (P versus Q).
Evaluate the cost structure of the company as well as its Total Cost, Average Cost and Marginal Cost functions.
Based on the Cost and Revenue structure of the company, determine the economic profit, output and product prices of the company. The nature of the company selected by the student would determine the market structure of the company (competition, monopolistic competition, monopoly, or oligopoly).
Use the Mergent Online Program available to the business students in the business lab to obtain information on the company economic data (the relevant data would include, but not limited to the balance sheet and income statement).
Make sure to attach all the company related printouts you have obtained from various sources with your final write-up.
A series of web addresses that provide company demand, revenue, cost, pricing, profit, and financial information are given below
A report (20-25 pages) from this research is to be turned in by November 30, 2016 (Monday). Details will be discussed throughout the semester.
Use the Assignment facility in the Black Board to submit your Economic Analysis Project.
Make sure to attach all of the informational printouts (submit them as attachments through the Assignment facility in the Black Board) you have obtained from various web sources with your final write-up.
The report must be of professional quality in terms of format, typing, grammar, spelling, etc. Severe grade reductions will result from failure to present a professional document. It is expected that there will not be any misspelled words or typos. The following format should be used to prepare the report:
1) Cover page
5) Cost Analysis
9) Attachments
2) Abstract
6) Profit Analysis
10) Appendix (if any)
3) Introduction
7) Conclusion
4) Demand Analysis
8) Bibliography