Respond to the given scenario with your thoughts/ Managerial Economics
Respond to the following scenario with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
Additional Information: AutoEdge is considering an expansion project to include other automotive manufacturing companies overseas. George comes into your office as you’re getting ready to leave for the weekend. “I’m glad I caught you before you left,” he says. “What can I do for you, George?”
“I just got out of a committee meeting with some of the other board members,” he says. “Among other things, we are considering an option to expand internationally. Naturally, we need to determine the relevant factors to consider before making the decision.” “I think I see where this is going,” you say.
“It sounds like you want me to list, describe, and analyze the most important factors that must be considered.
Am I right? “You are correct,” he says.
“I should think five factors would be enough.
Please consider the pros, cons, and risk factors, too.” “Do you want me to add a recommendation?” you ask. “Yes,” he says.
“Once you have analyzed these factors, provide a recommendation on whether or not you would expand the company’s product line to automotive manufacturing companies located in other countries.” “OK,” you say.
“I can get this to you by Friday morning next week. Is that soon enough?” “That’s perfect” he says. “Thanks.”
