Project/Case study

• Please answer all questions and draw the curves/graphs, where necessary, and explain every step.
• All work should be original no AI.
• All references in APA format.

Project/Case study

Case: Consider that you have recently been promoted to a higher managerial position in the below organization/ industry.

Please answer the following:

Organizational Profile (2 marks)

Provide a concise but comprehensive profile of your chosen organization, including:

1. Foundation and history
2. Core objectives and mission
3. Main products/services
4. Key operational activities

Managerial Economics application (2 marks)

Explain how managerial economics can support effective decision‑making in your organization. You may discuss:

1. Hiring decisions
2. Cost management
3. Strategic planning
4. Risk and uncertainty

Porter’s Five Forces & Industry Profitability (2 marks)

Using Porter’s Five Forces Framework, analyze how each force affects the profitability, competitiveness, and long‑term sustainability of your organization:

1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products/services
5. Intensity of competitive rivalry

Most Critical Force(s) (2 marks)

Identify which of the five forces is most critical for your organization and justify your answer using industry‑specific reasoning. Consider:

1. Market concentration
2. Cost structure
3. Customer behavior
4. Regulatory environment
5. Technological change

Wage Reduction Scenario (2 marks)

Suppose the owners ask you to reduce worker wages to increase profits. Analyze the likely consequences on:

1. Workforce quantity (turnover, resignations, absenteeism)
2. Workforce quality (skills, productivity, morale)
3. Profitability and sustainability

Demand, Elasticity & Pricing Strategy (2 marks)

1. Identify one major product/service.
2. Discuss the key determinants of demand for this product/service.
3. Assess whether demand is likely elastic or inelastic (justify).

Cost Structure & Economies of Scale

Using your chosen organization:

1. Identify major fixed and variable costs.
2. Explain whether your organization benefits from economies or diseconomies of scale.
3. Recommend managerial actions to reduce average costs in the long run.

Market Structure & Strategic Behavior

Using your chosen organization:

1. Identify the market structure of your industry.
2. Explain how this structure affects pricing power.
3. Recommend strategic actions to improve competitive advantage.

Pricing, Market Power, and Strategic Interaction (2 marks)

Using your chosen organization:

1. Analyze the degree of market power your organization has in its industry. Consider factors such as brand strength, customer loyalty, switching costs, and product differentiation.
2. Evaluate how competitors are likely to react if your organization changes its pricing strategy (increase or decrease).
3. Recommend an optimal pricing strategy for the next 12 months, considering demand elasticity, competitive behavior, and long‑run profitability.

GCC/KSA Economic Environment & Organizational Strategy (2 marks)

Analyze how key macroeconomic factors in Saudi Arabia or the GCC region influence the strategic decisions of your organization. In your answer, discuss at least three of the following factors and explain their impact on pricing, costs, investment decisions, and long‑term profitability:

1. Saudi Vision 2030 policies and sectoral reforms
2. Oil price fluctuations and their spillover effects on demand and investment
3. Labor market regulations (Saudization / Nitaqat)

Please write your answer on the next pages

Answer:……………………….