Respond to the required questions, double-spaced, APA format (source citations and reference insertions) essay (Each Question). In each Case Study, you must use at least three (3) references (in text), including the textbook (included below).
Textbook reference:
Smith Jr., Clifford W. Managerial Economics & Organizational Architecture (Irwin Economics) (p. 103). McGraw-Hill Higher Education. Kindle Edition.
(This Assignment Box maybe linked to Turnitin.)
Respond to the required questions, double-spaced, APA format (source citations and reference insertions) essay (Each Question). In each Case Study, you must use at least three (3) references (in text), including the textbook (included below). Textbook reference: Smith Jr., Clifford W. Managerial Economics & Organizational Architecture (Irwin Economics) (p. 103). McGraw-Hill Higher Education. Kindle Edition. (This Assignment Box maybe linked to Turnitin.) 300 Words: Case 1: Chapter 8 - "Analyzing Managerial Decisions: Leaving New York City for the Farmlands of Illinois” You have worked as an investment banker in New York and Hong Kong for the last five years. You are tired of living in populated cities and yearn for a more peaceful environment. The Wall Street Journal contained a story about the federal government’s actions to increase corn-based ethanol as a substitute for gasoline in the United States. According to reports, new laws and regulations will result in the construction of hundreds of new ethanol factories over the next decade. Demand for corn to fuel the plants is expected to soar. Based on a Web search, you found 80 acres of prime farmland for sale in Illinois at a price of $10,000 per acre. You have saved enough from your past bonuses to purchase the land. You are tempted to quit your job and purchase the land to farm corn. Several colleagues have told you that it sounds like a good idea. They say that not only would it allow you to move to a less populated area, but it is a great business opportunity with little risk. Surely the price of farmland will increase dramatically over the next few years as the ethanol plants begin operation and the demand for corn skyrockets. Good farmland is limited, and you might reasonably expect its price to double or even triple over the next few years. You are smart and should be able to learn the farm business very quickly. In addition, you will have a cost advantage over farmers who wait to buy land at much higher prices. If you decide that you do not want to be a farmer, you can always sell the land at a “huge profit.” Question: Do you think your colleagues are giving you good advice? Explain. 200 Words: Case 3: Discussion 1 If a firm has created value, is it also always able to capture that value? How does a firm create value and then what must it be able to do to capture that value? In your answer, provide an example of a firm that has been able to create value. Then discuss whether or not you believe it has captured that value and if so, how it was captured and if not, why it was not able to do so. 100 Words: Case 4: Mayra: Discussion 2 To create value, employees must convert their existing knowledge about production processes, transaction costs, customer demand, and so on, into ideas that can be implemented by the firm (Brickley, Smith, & Zimmerman, 2016, p.266). If a firm’s strategic approach doesn’t market the value they create, demand could decrease, and the value created would not be captured. Therefore, it is essential for a firm to implement a strategy that does not only create value but is also accepted by its consumers. Due to the economies of scope, diversification has the ability to enhance value. A profitable business that is known for its diversification and promoting complements is Amazon. Amazon is a great example of a company that has successfully captured its value across the nation. To create value, Amazon suppresses costs and passes savings on to customers in exchange for loyalty and volume of business (Crawford, 2013). Then to capture the value, the company has developed two approaches to encourage scale-building buying habits, which help ensure it captures the value it creates for customers while increasing sales revenue: Amazon Prime and Subscribe & Save (Ryall, 2014). As a recent Amazon subscriber, I could attest that by having access to the benefits and discounts from Amazon Prime, I have become much more of a frequent online shopper. Before, I’d buy products such as shampoo and conditioning at my local store however, I now order it online at a discount and can have it automatically redelivered every month. Amazon's logo displays market power that represents the company selling everything from A to Z. In their logo alone, they show diversification of products and has a high level of supply and buyers, increasing the overall demand of the company. For consumers, Amazon’s fast and free delivery services, discounts, and other benefits such as Amazon Music has created accepted total value for millions of users. To conclude, the measure of the quality of a business is all about creation and value capture (Jorgenson, 2019). The strategic approach adopted must devise ways both to create and to capture value of the firm, in order to be successful. · Comment on this (100 words). 100 Words: Case 5: Morgan: Discussion 2 If a firm has created value, is it also always able to capture that value? Creating value is an essential first step in generating profits. Once a company creates value, it is necessary to capture this value. Delivering and creating value for the customers is the foundation of any business enterprise; in fact, value has been “the fundamental basis for all marketing activity” (Holbrook, 1994). Brickley, Smith & Zimmerman (2016) suggest that a firm might create or increase value by implementing steps to lower costs on the production and producer transaction side; reduce the costs incurred by consumers; create programs that create a perception of increased quality, affect the price of substitutes and complements to drive up demand; and develop new products or services. · Comment on this (100 words)