Assume you have recently been hired as a new manager of EyeTech Company, an innovative company that sells specialized eye care treatment equipment to Ophthalmologists, Optometrists, clinics,and hospitals.Over the course of your first year, you will face 4 challenges as set forth below: 1. March2. June3. September4. December.Respond to each and every challenge one at a time with insights you have gained from your study of the material presented in modules 1 through 5.

Youmust use at least 2 different resourcesper challenge (the textbook can be one of the resources) to support your responses to each challenge.

1.March

The company's finance department has recently concluded some research regarding the elasticity of demand for the company's primary products.The results show that the company's primary products now face a slightly inelastic demandthat is likely to continue for about 6 months.

1. Explain in detail the basic meaning of inelastic demand.What does this mean in terms of pricing a company's products?How is it different than elastic demand?

2a. Next, based on the information provided by the company's finance department, set forth whether you will recommend to the company CEO either a price increase, or a price decrease, or keeping prices the same of your primary products, and explain why.

2b. Assume the CEO ignores your advice and chooses 1 of the 2 options you do not recommend.Explain what is likely to happen under each non-recommended option if that option is chosen.

2. June

As manager, you have decided that it's time for some price discrimination to benefit EyeTechCompany.

1. Explain why price discrimination is a good thing and can be beneficial to both producers and consumers.

2. Explain in detail the basic meaning of First Degree Price Discrimination, Second Degree

PriceDiscrimination, and Third Degree Price Discrimination.

3. Assume that each degree (including the typically impractical first degree form) can be successfullyimplementedby EyeTechCompany.Recommend the specific degree of price discrimination forEyeTechCompany that you believe will be the most successful in improving sales, and explainwhy.(Note that you can only select one specificdegree.Do not selectmore than one degree or acombination of degrees.)

3. September

Assume the year is 2025.The CEO and Board of Directors of EyeTechCompany have decided to expand the company's operations into a foreign country, and they have narrowed it down to three countries to choose from: Freedonia, Verpaly, and New Bazoga.Data collected regarding the three countries for the past three years is as follows (note that bil= billions in US dollars):

FreedoniaVerpalyNew Bazoga

Years202220232024202220232024202220232024

GDP19bil22 bil23 bil15 bil18 bil20bil16bil14 bil16 bil

Unemployment7%7%5%8%7%7%5%5%6%

Inflation3%4%5%3%3%2%4%6%3%

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The company now calls on you as the business manager to analyze the data and provide recommendations to the board regarding the three countries.Be sure to take into account the changes from one year to the next in your analysis to avoid looking only at the data from 2024 and making your recommendations based on that year alone.

1. Based only on GDP, identify the country you would recommend be chosen by the board, and explain why.

2. Based only on Unemployment, identify the country you would recommend be chosen by the board, and explain why.

3. Based only on Inflation, identify the country you would recommend be chosen by the board, and explain why.

4. Lastly, based on all of the data, which country would you recommend be chosen by the board, and explainwhy.

4. December

The word has gotten out that EyeTechCompany and other companies selling similar products are quite successful, so many groups of wealthy investors are in the process of putting together more companies to compete directly against EyeTechCompany and others.Because of the additional competition, you are tasked with coming up with several strategies to help EyeTechCompany maintain its competitive advantages.

1. With respect to pricing, you now have three basic choices at this time: lower the prices, raise the prices, or maintain current prices.Explain the pros and cons of each option in the face of the new competition.

2. How would you approach any of your customers that have been consistent buyers of EyeTechCompany's products over many years, but they advise you that they like what the newcomers are offering, and that they are also offering to sell their products at lower prices that EyeTechCompany cannot match?What would you do to try to keep the customers loyal to EyeTechCompany?

3. You soon discover that the new competition is offering equipment that is more advanced than EyeTechCompany's equipment.Two options present themselves to you: A. Immediately invest in and offer the same quality of equipment to your buyers so you can compete more equally with the new competition, or B. Invest the same amount of money into researching even more advanced equipment to more than likely enjoy a competitive advantage over all of your competitors.However, this will take some two to three years to develop and offer on the market, plus the costs will be significant and could diminish your overall profits for many years.Also note that if you go with option A, the investment cost would be such that EyeTechCompany will not be in a position to develop new equipment for at least 4 years.

Select the option you believe will work best for EyeTechCompany, and explain why you believe that option is the best one.Then explain why you believe the option you selected is a better option than the option you did not select.