ECON90015 Managerial Economics Of Australia


“I didn’t have time to write a short letter, so I wrote a long one instead.” ― Mark Twain (Links to an external site.) (also attributed to Pascal, Cicero et al)

You are asked to prepare briefing notes for an incoming ‘Chairman of the Board’ for your organisation (or last employer). Assume they know nothing about the business or your market segment.

Prepare word document no longer than 3 pages, 1.5 spacing, 12 font. Include (as is relevant):

  • What does your organisation produce? What is your production process and how do you reach your consumers or who do you sell to? (i.e. do you retail; wholesale, are you B2B, a service provider, assembler, R&D producer etc?).
  • The cost structure of the organisation? How many employees does it employ? Have you achieved minimum efficient scale? Are you facing diseconomies or economies of scale?
  • What are your value drivers? That is, what it the main source of your competitive advantage? [certain types of skilled workers, ownership of a scarce resource; intellectual property (brands, design or inventions); access to knowledge from a foreign parent company]. What is your competitive advantage (over rivals in your market)?
  • What is the structure of your industry? (number and size of competitors, domestic or overseas suppliers). No organisation is a total monopolist, think about who else competes for the same customers.
  • How innovative is the organisation? Why does it innovate; what have been the past successful and unsuccessful innovations?

Assume the Chairman is new to the industry and only understands common English (avoid jargon). This ‘Brief’ is an exercise in being clear, pithy and precise in your words. Use dot points if appropriate, plenty of white space and do not make the page overly fussy. This will be read by a busy person who will skim the page and will only read if it is well structured and expressed. Layout and formatting is important. Leave white space on the page.

Do not add puff or unsubstantiated praises such as ‘excellence’, ‘the best in the industry’, or vague clichés such as ‘solution provider’, ‘embracing new ideas’.

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