Consumer and Firm Behavior

Consumer and Firm Behavior
Company Analysis
Assignment Due Date: 27 Oct 19 23:59 Assignment Weight: 30%

The purpose of this INDIVIDUAL essay is to analyse a local or international business.
For large companies that operate in multiple industries you should focus on a single market
that the company is operating in. You should use the concepts and tools learned in the
course to successfully complete this task. The assessment must be submitted electronically
in pdf format via the Turn-it-in folder on the course Blackboard site by the due date and time.
The essay should be organized in a coherent manner and must have a title, an
abstract (max. 200 words), a short introduction, main analysis and a short conclusion. The
essay is limited to a 2,000-3,500 word count (excluding references, figures).
In the introduction you should define the specific market that you are analysing (e.g.
WestBank in the Australian home loan market) and justify why chose to define the market so
narrowly/broadly.
In the main analysis you need to answer the following questions:
x What is the market structure of the industry that the firm is operating in? How many
firms are there in the market? Are there any barriers to entry?

x Do the competition authorities regulate this market? Have there been reports of anti-
competitive behaviour by any firm in the industry?

x What is the cost structure of the company? What are the main factors of production?
Are there economies of scale and scope?
x Does the firm use price discrimination methods?
x What is the informational structure of the market? Can buyers easily observe price
and quality? What specific strategies does the firm employ to solve or take
advantage of asymmetric information problems?
x How intensive is the usage of advertising? What form of advertising is mainly used by
this company?
x Is the market multi-sided? Are there any direct or indirect network effects?

2
x Is it reasonable to assume that consumers in this industry are perfectly rational?
What strategies does the firm employ to take advantage of the bounded rationality of
consumers?

You should discuss other important questions in your essay if they are crucial to the
understanding of the firm. In your analysis you should make use of quantitative data (costs,
market share, profitability, advertising expenditure etc.) in answering the above questions.
Usage of graphs and tables is highly appreciated.
Essays submitted after the due date, without prior approval, will be penalized at a rate of
10% of the value of the assessment item per day (including weekends and any public
holiday). For example, if you submit your essay three days after the deadline, your final
grade will be penalized by 30%.

 

Additional notes:(1) target company: Qantas
(2) use at least 10 references (most of them must from scholar essay and
persuasive )
(3) use figures to explain some concepts or data
(4) must follow the Guide_CompanyRepor

 

Abstract (5%) Introduction (10%) Conclusion (5%)
Summarizes the report without
being vague.
Communicates the main results.

Motivates the importance of the
firm. defines the relevant
market/industry.
Summarizes the rest of the paper.
The section is well structured and
well written.

Adequately summarizes the
main properties of the
industry and discusses its
future directions.
The section is well
structured and well written.
Formatting (5%) Spelling & Grammar (5%) Referencing (10%)
Adheres with formatting and style
requirements (maximum 3500
Words). Has a title.

Uses correct spelling and grammar
throughout the paper.

Avoids plagiarism.
Properly uses the APA (or
Harvard) referencing style
consistently.
Uses quotes and
paraphrases adequately.
Clearly distinguishes original
work from referenced work.

Main Analysis (60%) Market Structure Regulation
Answers all the questions listed in
the assignment guidelines as
relevant for the firm. Uses data and
figures well.
The section is well structured and
well written.

What is the market structure of
the industry that the firm is
operating in? How many firms are
there in the market? Are there
any barriers to entry?

Do the competition
authorities regulate this
market?
Have there been reports of
anticompetitive behaviour
by any firm in the industry?
Consumer rationality Network effects Asymmetric Information
Is it reasonable to assume that
consumers in this industry are
perfectly rational? What strategies
does the firm employ to take
advantage of the bounded
rationality of consumers?

Is the market multi-sided? Are
there any direct or indirect
network effects?

What is the informational
structure of the market?
Can buyers easily observe
price and quality?
What specific strategies
does the firm employ to
solve or take advantage of
asymmetric information
problems?
Pricing Production function Advertising
Does the firm use price
discrimination methods?

What is the cost structure of the
company?
What are the main factors of
production? Are there economies
of scale and scope?

How intensive is the usage
of advertising?
What form of advertising is
mainly used by this
company?