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Suppose that the corporate leadership of the Pepsi Cola corporation is discussion business strategies for the upcoming couple of years. The discussion is centered around
Suppose that the corporate leadership of the Pepsi Cola corporation is discussion business strategies for the upcoming couple of years. The discussion is centered around wanting to maximize Pepsi's economic prot. Suppose that the CEO of Pepsi sets as a goal to increase Pepsi's market-share (i.e., wanting to increase Pepsi's sales as a percentage of total market sales). The CEO motivates this strategy by saying this will increase Pepsi's economic prot. The President of Pepsi does not agree. The President claims, instead, that Pepsi should focus on increasing their prot margin. Using tools from class, carefully construct arguments against both the CEO's preposal and the President's proposal. Demonstrate that regardless of market structure, their strategies are unlikely to maximize economic prot
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