Economic Analysis of US Automotive Industry Assignment | Online Assignment

**THIS IS PART 2 OF A 2 PART PROJECT. PART I IS POSTED SEPARATELY WITH AN EARLIER DUE DATE** ECP 6705 – Managerial Economics Portfolio Paper Part II (due Friday, 06/26/2020) IMPORTANT! This paper is the final version including the previously submitted sections from Part I. The executive summary and ending summary/conclusion MUST cover all seven content sections. The order of the final paper should be: 1. Executive Summary 2. Brief Overview/Industry Analysis 3. Labor Costs and Quality 4. Evidence from Recent Capital Activity 5. Financial Ratio Analysis 6. Evidence of Scale Economies 7. Evidence of Scope Economies 8. Ethical Issue Analysis 9. Concluding Summary 10. References Since you were previously graded on sections 2-5, those sections are not directly graded again in the final paper. Instead, you are assessed on how well you integrate the information from those sections into the Executive Summary and Concluding Summary. The points for Portfolio Paper II are as follows: Executive Summary (3/4-1 page, 45 points) A succinct summary (not just an outline but an executive summary, you will lose points for failing to include your findings). Evidence of Scale Economies: Is Bigger, Better I (1-2 pages, 45 points) 1. Why — or why not — a big firm in this industry? 2. Why a small firm and how does it avoid competing with a big (An example always helps)? 3. Design a study of scale economies Evidence of Scope Economies: Is Bigger, Better II (1-2 pages, 35 points) 1. Do firms produce products that are related to each other? 2. What is the advantage of this production strategy (if any exists)? 3. Design a study of scope economies Ethical Issue Analysis (2-3 pages, 55 points) 1. Identify an ethical issue 2. Explain the direct and indirect effects of the issue on the relevant stakeholders 3. Are moral hazard or adverse selection involved in the issue? 4. Identify and explain issues not yet commonly acknowledged (may be unrelated to the first ethical issue) Summary (2 pages, 40 points) Given what you have learned, do you want to 1. Work in this industry (short term prospects and long term prospects); and 2. Own capital in this industry (short-term prospects and long-term prospects) (Your summary should be backed up by the research you conducted and the analysis you included in the prior sections.) References (40 points) 1. Industry level sources are included 2. Business periodicals are included 3. Something extra (e.g., interview or trade journals) is included 4. This list reflects the reading of an “expert”. Total points for the above sections: 260

ECP 6705 Portfolio Paper

In this portfolio paper you are expected to conduct an economic analysis of the selected industry, including of the cost structure and profitability.

Paper Citations – Remember that you are writing an analysis, meaning you are expected to gather information from quality sources and synthesize it into a convincing analysis of the industry. You should directly quote from sources when appropriate, but, in general, should avoid using direct quotations. Your goal is to convince the reader that you are knowledge about the industry, not that your source is knowledgeable. Again, you should cite all direct quotations and identify them correctly in your paper using quotation marks, but you must also include citations when you use facts gathered from your sources. If you are unsure about how to correctly cite your sources, please ASK!

Tips for Writing a Good Paper (many of these come from Dr. Hawkins, with some additions of my own)

1. What have you read or what do you need to read?
   1. How much do you know about the industry? Meaning, how much have your read about it, not just “heard” about it? How current is the information?
   2. Do you have regular sources for industry information or news? Newspapers? Social media (perhaps Twitter for company updates or press releases)?
   3. Could you describe recent examples of an awesome strategy (by a company) and a horrible strategy?
   4. How credible is the source? Are even credible sources to be blindly believed (“Do you somehow believe that commercial industry reports (e.g., IBISWorld) are sacred texts”)?
   5. Are there any unusual relationships between companies or related entities (for example, a student once reported a D/E ratio for Hyundai of 0.35). This failed the “smell test” and the student later discovered that a related company held all of the factory-based debt and Hyundai leased the factory.

1. Thinking about the data and information you find
   1. Who are the workers?
   2. Is the industry capital intensive?
   3. If little physical capital is owned by the company, is production outsourced? What does the company pay for? (e.g., research and development for pharmaceutical companies who pay other companies to actually manufacture and package product)
   4. Are small companies able to compete? Is it because of a particular niche?
   5. In thinking about the short-term and long-term prospects:
      1. What are the complements and what are the substitutes?
      2. Does your industry fit in our basic industry structures?

• Writing (Suggestions)
  5930. Support your story! You should be familiar with many sources of business data and information from GEB5930. If you need assistance, the business reference librarian is a great contact.
  5931. Use numbers but be careful you tell a story about the numbers, not just present them!
  5932. “Watch out for roller-coaster economics (e.g., ‘The financial service department’s assets have decreased by $295.8 million over the past six months mainly because its accounts receivables decreased by $232.8 million and cash increased by $9.1 million’)” Think about which numbers help tell your story, which are irrelevant, and which might be presented in a table or graph but don’t necessarily need to be commented on.
  5933. Tables are helpful, but can be wasteful. Consider what the reader gains from the visual display instead of just writing about it? A single comparison can probably be made in the narrative. Several data points might best be accompanied by a table or figure.

Late Paper — In general, the penalty for a late course paper will be decided by a conference call between the instructor and MBA administrators.

ECP 6705 – Managerial Economics Portfolio Paper Part I Outline (due Sunday, 06/07/2020)

Total points for the above sections: 260

Total points for Paper I: 300 (includes 40 points for writing proficiency; mechanics, such as punctuation, grammar, etc. and readability, such as structuring of ideas, word choice, etc).

ECP 6705 – Managerial Economics Portfolio Paper Part II (due Friday, 06/26/2020)

IMPORTANT! This paper is the final version including the previously submitted sections from Part I. The executive summary and ending summary/conclusion MUST cover all seven content sections. The order of the final paper should be:

1. Executive Summary
2. Brief Overview/Industry Analysis
3. Labor Costs and Quality
4. Evidence from Recent Capital Activity
5. Financial Ratio Analysis
6. Evidence of Scale Economies
7. Evidence of Scope Economies
8. Ethical Issue Analysis
9. Concluding Summary
10. References (all, including from Paper I)

Since you were previously graded on sections 2-5, those sections are not directly graded again in the final paper. Instead, you are assessed on how well you integrate the information from those sections into the Executive Summary and Concluding Summary. The points for Portfolio Paper II are as follows:

Total points for the above sections: 260

Total points for Paper I: 300 (includes 40 points for writing proficiency; mechanics, such as punctuation, grammar, etc. and readability, such as structuring of ideas, word choice, etc).