Virtual Economy Home page - Ground Floor.Case Studies - 1st Floor.Economic Policy - 2nd Floor.Library - 3rd Floor.The Model - 4th Floor.

Return to original document

Business Case Studies - Issues

This section looks at some issues that are raised by the policies you have tried, and considers how they might affect the firm you have chosen.

Issues raised

Company name?


Policy type?


What impact are the policy changes likely to have on the level of demand for the company's product? Why?

|


|

|

|

|

|

What impact are the policy changes likely to have on the company's costs? Why?

|


|

|

|

|

|

|

What impact are the policy changes likely to have on the company's profitability? Why?

|


|

|

|

|

|

What impact are the policy changes likely to have on other aspects of the company's financial situation? Why?

You may like to consider:

  • the level of liquidity
  • the level of stocks
  • the level of bad debts
  • any income on investments
  • interest payments and so on

|


|

|

|

|

|

|

|

What strategies could the firm adopt to counter the effects of the policies?

|


|

|

|

|

|

|

|

Should they change their marketing strategy? If so which aspects - their pricing strategy, their advertising, the nature of the product itself or......?

|


|

|

|

|

|

|

|

|

|

Should they consider changing their Research and Development spending? If so why and by how much?

|


|

|

|

|

|

What policies should they lobby the government to carry out?

|


|

|

|

|

|

|

|

Carry out a SWOT analysis for the firm based on these policy changes and the future prospects of the company:

StrengthsWeaknessesOpportunitiesThreats
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

Intro | Results | Issues