Instructions: Schmeckt Gut plans the market launch for the Schmeckt Besser energ
ID: 1161978 • Letter: I
Question
Instructions: Schmeckt Gut plans the market launch for the Schmeckt Besser energy bar in Atollia within the next couple of months. The Research Department of Schmeckt Gut has conducted a market analysis of Atollia. The results are provided for you in the supplied EXCEL file. Based on international sources, the Research Department is comfortable in working with the following scenarios on the future development of average income in Atollia, the inflation rate development and tariff rates on imports from Industria: - Income growth: 1% increase or 3% increase or 5% increase or 7% increase - Inflation rate development: 2% increase or 3% increase or 4% increase or 5% increase - Tariffs on imports from Industria: 7.5% or 10% or 5% or free trade Note: These developments are not necessarily matched to each other in the sequence shown above; meaning that we do not know if the 1% increase in income is associated with a 2% increase in inflation rate and a 7.5% tariff rate. Your task: Your task is to write a 3,000-word report addressed to the Board of Directors of Schmeckt Gut in which you address the following: - Do you think you can match the different projections? That is, do you think that a 5% increase in income is associated with a 10% tariff rate and a 2% inflation rate? Explain by linking your discussion to the following concepts: o supply and demand o aggregated demand and aggregated supply o the Philipps Curve, and o the Laffer curve. - What impact would the different predictions of income development, inflation rate development and tariff rate development have on the potential demand of Schmeckt Gut? Conduct a multiple regression analysis using data in the supplied Excel file and then interpret the results. Fully discuss and explain their implications. - Make recommendations as to what the Board of Directors should do under each of your scenarios, based on your matching of the predictions. The precise format of the report will be informed by research undertaken by the student using the Torrens University library. Formal document sections such as executive summary, table of contents and appendices are not counted in the word count. Assume that the prescribed word limit is literally a limit and that the board will reject any report that breaches it.
Explanation / Answer
As per the given question, the schmeckt Gut planned to implement an effective strategy of about Schmeckt Besser energy bar in Atollia shortly.
They would like to examine the market and launch the services in effectively at international level. In this Global world, the economical tariffs vary from country to country. If one county float with great results for an economy then the country may face the severe economic crisis and inflation. They are considering the economic situation across the world they are observing the markets and as well as inflation.
Suppose the company is export OR import doing the trade with another country then they have to consider the economic situation along with inflation. If the country well sunk with inflation then the country remove or alter the tariffs on trade so that other country can do the export normally without fear about the restrictions of trade.
If the country faced severe inflation in their economy then the GDP will give best results. However, the GDP value will not consider at that moment because it came out along with inflation price. The government needs to take appropriate action in order to control the prices of basic necessity commodities when the inflation raises day by day.
The banks should have to monitor the economic tariff at country level and international level. If the inflation is out of control then the unemployment happen and need to depend on imports of necessity commodities & finally the counties economy will be collapsed. There is a lot of time to take to revoke the normal position once the economy smashed. We will not get any kind of investments from other countries. So, again we need to depend upon international banks to get the financial assistance.
The market research gives a good information about the economy at national level & International level. This is a wide range of concepts about the economy. The economy is played a large extent role in every country either at positive float OR at the negative float.