Managerial Economics

Managerial economics2006Managerial economics Page : 1Question 1 - Economic theories economic consumption by Nestle to be free- cipherprise(a)Nestles is an International Food drink Company . In a global matched purlieu where the mart twist is infirm or oligopolisti domiciliated the grocery destine is dynamical and changing in impairment of economic , favorable , policy-making and in environmental scathe Nestles has adopted strategies of knowledgeability , comprise lead and diversification by alliances , joint ventures and mergers to disembowel economies of cuticle and synergy and to like risks as well as utilize effective food merchandising strategies anticipating and reacting to competitor moves to continuously reminder and deepen strategy to increase indorseable growth andProfitability in its numerical pro duct lines ( Nestle , hypertext transfer protocol /www .ir .nestle .com /Nestle_Overview /Operational_ cognitive process /Operational_ Performance_Improvement /Operational Performance Improvement .htmThe Nestle in developing its strategies it has used racy theory to react competitorsActions , confront competitors actions so that it can maximize payoffs in a sustainable manner . In accessory it alike uses product first appearance because the food market is imperfect and dynamic it is vital to divergentiate products where it has competitive advantage to maximize profits on a sustainable basis . on that point fore it uses imperfect market output and pricing and advertizement strategies to maintain and grow sustain ably so that it can maintain and grow its market sh atomic number 18 and market position in its core product lines and in new product lines . It also uses the theory of economies of scale to lower its cost structure and change its productive capacity (mbs .edu , Man agerial Economics on-line(a) http /www .mbs! .

edu / nursing home /jgans /meconManagerial economics Page : 2Question 2- Nestles risks and strategies to do by risk in a global market placeThe risks Nestles facets be as followsEconomic and market risksNestle has to face economic risks in terms of cost , economic cycles barriers to submission like tariffs and quotas , stability and doubtfulness economic shocks like oil colour price shocks , uncertainty emerging growth potential , up-to-dateness fluctuations and interest rates risks by diversification in to antithetic geographical areas and channel products in markets where it can earn sustainable profits and product differentiation and pricing policies and strategic marketing m ethods For example Nestles have different product mix in different countries and uses different marketing and pricing policies depending on the disposition and intensity of competition in price and other non-price competitive means by select and brandingwhich maintain market destiny and grow on a sustainable basis as well as a strategy of continuous procession in cost control and innovate new products , which has a potential to add rank to the firm on a sustainable basis . As well it uses alliances , joint ventures and mergers to enter in to markets and choose methods , which are viable for the characteristics of these markets in terms of competition , business coating , government regulation , licit constrains and environmental concerns and social accountability within a plain (Nestles web site Sustainability http /www .nestle .com /Our_Responsibility /Sustainability /Sustainability .h tmManagerial economics Page : 3Question 2- Nestles risks and strategies to manage risk i n a...If you want to get a right essay, order it on ! our website: OrderEssay.net

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