1. Week 5 Discussion-Butler
The strength of the United States is centered around the basis of a functioning capitalistic economy; with the appropriate level of government involvement in providing some goods and services, while providing society with options to choose. Many of the private sector companies are built off services the government provides to all members of society. As well, there is often a private sector entity providing a similar service as the government. When the government provides goods and services, they are available to all members of society, without discrimination of race, color, sex, religious or socioeconomic status.
First, I would like to discuss goods and services that the government provides that are also offered in the private sector. It is important to note that government services are paid for in the form of taxation. (Fernando, 2022) Examples of services provided by the government include military, law enforcement, education, telecommunications, public transportation, transportation infrastructure, postal services, recreational facilities, healthcare, schools, libraries, courts, and public housing. (Indeed Editorial Team, 2022) Many of the services listed above, I would argue are a basic right of living in this country. The private sector, however, also offers many of these services, with a focus on a particular demographic or geographical area and are not designed to service the needs of everyone.
Next, I will compare private sector and government options using some of the examples provided above:
Transportation: Uber, taxi cabs, private buses, and airplanes; if one can afford to utilize one of these options, it offers a more efficient and often a faster mode of transportation as compared to government provided transportation.
Postal services: UPS or FedEx; provides an efficient option that affords the consumer more control of when a package arrives at its destination, as compared to the United States Postal Service.
Recreational facilities: Lifetime fitness, YMCA, and Country Clubs; provides the consumer a more elevated experience or expanded service offerings, as compared to county parks and recreation services.
The private sector competing in the open market creates a thriving and competitive market for consumers to have options regarding the goods and services they purchase. I believe a government that offers basic needs in a non-discriminatory manner with little influence on the open market is the right balance for all members of society. I do not believe the answer is all or nothing.
Fernando, J. (2022, March 20). What are public goods? Definition, how they work and example. Investopedia. Retrieved September 13, 2022, from https://investopedia.com/terms/p/public-good.asp
Indeed Editorial Team. (2022, April 14). What are public services? (Definition and 23 Examples). Indeed. Retrieved September 13, 2022, from https://indeed.com/career-advice/finding-a-job/what-are-public-services
2.In this paper I will express the Vanda-Layne Corporation investing and its production and supply of a portable, low-power electric grill. It seems like there are already a lot of grill brands out there. But none of these brands match the projected nature of the grill Vanda-Layne wants to introduce. A lot of market research is needed before launching any new product to figure out what’s likely to foster the product’s success in the market and what’s likely to kill it. As the economist of the company, I have the responsibility to sample and evaluate all the market forces likely to bear different kinds of impacts on the projected product. Vanda-Layne has just come under new ownership; this means that the management twill be undergoing significant changes both in its product lines and in operating structure. However, the fundamental aspect to note in the process is the goals of the company during this phase of transformation. First, the corporation aims to make a profit since this is the primary goal of every business.
Given the fact that there are already different brands of grills in the market, Vanda-Layne will have to come up with an exclusively distinct product that encompasses most of the features of the products already existing in the market. Second, the company aims to dominate other producers and suppliers of outdoor cooking supplies. Overall, the project entails identifying and evaluating the market factors likely to contribute to the success and failure of Vanda-Layne’s portable, low-power electric grill. Market Factors Uniqueness and Superiority: New Idea The distinctiveness of a product is important in setting the product from the array of similar products in the market. Devece, Peris-Ortiz, and Rueda-Armengot (2016) define product superiority as the differentiation in characteristics existing between similar products that elevates a given brand of the product over the others in terms of perceived value and quality. Currently, there are four major types of grills: gas grill, charcoal grill, electric grill, and portable grill. Each of these grills has merits and demerits. For instance, many of the electric grills in the market are fixed, that is, they are not portable. The charcoal grill consumes much quite much time to set and use. Gas grills have issues regarding the taste of meat being cooked. Therefore, Vanda-Layne’s portable, low-power electric grill will address these challenges at once. Value for Money Research indicates that consumers prefer products that meet their needs, cheap and are durable. Vanda-Layne’s portable, low-power electric grill is not only portable but also low on power consumption. Additionally, it is durable so it can serve the consumer for vast period. These aspects are likely to lure the target market, thereby leading to the success of the product. Convenience The new portable, low-power electric grill is highly convenient in every aspect. For instance, the grill is portable so the consumer can carry it around during a picnic or within the homestead. Moreover, it is electric, so it solves the duration spent on setting a charcoal grill, thus helps to save time. Despite being electric, the grill is low on electricity consumption so itis cost-effective when compared to the brands of electric grills already in the market. According to Devece, Peris-Ortiz, and Rueda-Armengot (2016), consumers prefer a product that is convenient in terms of cost and usage. In this sense, Vanda-Layne’s portable, low-power electric grill meets all facets of convenience. Promotional Efforts A great deal of the success of the product is down to the marketing efforts towards promoting the product. As aforementioned, different brands of the same product already exist in the market. However, attractive packaging accompanied with glittering messages put on various marketing mechanisms such as traditional media, social media, and other promotional tools for wide reach is more likely to generate success for the product. Narrow distribution Channel Vanda-Layne must make efforts to expand the distribution channels for the new product. Given the increasing digital prevalence in today’s business world, an online presence is among the viable means for distributing the new product to consumers. Vanda-Layne can buy domain on the leading online stores and promote the product. Additionally, the company can simply intensify the distribution of the product through physical stores although it will be forced to spend to identify the most popular stores in every city of every state. If the company fails to explore and sample all distribution channels, the product is likely to fail in the market. Distribution channel also affects the interplay between demand and supply in the sense that when the demand is high, a narrow distribution channel might affect the product performance negatively. Thus, the distribution channel must be vast to increase supply. Inconsistency and Weak Quality Vanda-Layne’s portable, low-power electric grill is a combination of various kinds of grills. Therefore, the company has the responsibility to maintain the standard by producing quality versions throughout. According to Devece, Peris-Ortiz, and (Rueda-Armengot 2016), inconsistency is dire costly in terms of market share, that is, when the quality of a product is inconsistent, consumers are likely to give up on the product for the alternatives. This will have a negative bearing on the performance of the product in the market. Overall, the market factors reveal more success than failures for the projected product. Moreover, the potential Failures can be addressed by adopting extensive-promotional efforts coupled with consistent production of quality pieces of the product. The Role of Capital Budgeting Capital budgeting is crucial when a company plans to purchase a fixed asset or introduce a new line of product, as in the case of Vanda-Layne’s portable, low-power electric grill. (Kengatharan, 2016) defines capital budgeting as the planning process a company uses to determine if the long-term investment in the form of new product lines or fixed assets is worth the funding of the company’s finances. It is determined based on the firm’s capitalization structure. In the case of Vanda-Layne’s portable, low-power electric grill, capital budgeting plays a significant role in determining if the product is worth the funding of cash. Apparently, the concept of capital budgeting affects the recommendation of the underlying project on the positive end. New Products and Government Intervention Government intervention in the market helps to promote economic fairness. As Feng, Fu, and Kutan (2019) argue, government intervention in the market leads to inequality because power grows at the expense of workers’ efforts and consumers’ losses instead of producers’ abilities. For instance, Vanda-Layne’s portable, low-power electric grill draws significant impacts from government intervention. Apparently, the government bars non-environmentally friendly sources of energy such as charcoal for environmentally friendly sources such as electricity. In this sense, Vanda-Layne’s new product draws a positive intervention from the government in the sense that the government approves its major means of operation, that is, electricity.
Recommendation and Justification
As Vanda-Layne’s economist, I recommend investing in the identified product line. After sampling and reviewing every market factor, I realized that most of them would help the product succeed in an already flooded market. By adopting appropriate measures, the potential factors that could lead to failure of the product could be minimized. This includes potential hitches in the product distribution channels as well as consistency. Vanda-Layne’s portable, low-power electric grill is destined for success based on the current and upcoming government policies. In terms of competitor analysis, most of the brands similar to Vanda-Layne’s portable, low-power electric grill bear only one of the features that Vanda-Layne’s new product exhibits. Overall, the product is destined for success and the company should consider investing in the line in the coming year.
Devece, C., Peris-Ortiz, M., & Rueda-Armengot, C. (2016). Entrepreneurship during the economic crisis: Success factors and paths to failure, Journal of Business Research,69(11), 5366-5370. doi.org/10.1016/j.jbusres.2016.04.139
Feng, L., Fu, T., & Kutan, A. M. (2019). Can government intervention be both a curse and a blessing? Evidence from China’s finance sector, International Review of FinancialAnalysis,61, 71-81. doi.org/10.1016/j.irfa.2018.10.010
Kengatharan, L. (2016). Capital budgeting theory and practice: A review and agenda for future research. Applied Economics and Finance,3(2), 15-38.doi:10.11114/aef.v3i2.1261