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Elasticity and Regression Analysis.

Task 1:
Identify and analyse how you and your team would be able to understand the market better by using the concept of Elasticity and Regression Analysis.

Task 2:
Based on Task 1, evaluate the potential changes your team would take to improve the sales at your restaurant?

Task 3:
Share your findings and conclusions.

Based on this article “McDonald’s – A Short Sale” by Dr. Sanford Pinna, complete the following tasks:
1. Explain why by adding more workers the productivity of a production may fall? How will the increased of branches will be similar to the above?
2. How the factors below contribute to the diminishing of profit for your restaurant:

o Inflation
o Decrease in Purchasing Power
o The power of competition

Watch the following video BEFORE working on this week’s Group tasks:
Kevin Harrington Discusses Differentiating Yourself, Your Pr
Your CEO called you in and show you that business rivals within your business area have grown. Eventually, the market research done by the research team of your company had indicated that these competitors have actually copied your ideas! Your CEO would like you to analyse the situation with the following questions in mind:
a. Discuss the situation which might arise when more firms entering into the market with similar activities around the business area.
b. How will this affect the restaurant’s profitability?
c. What would be the implication in the long run for your restaurant if such situation arises?
Based on TASK 1, and this week’s video on how to differentiate your products…
a. Discuss how you will differentiate your restaurant from the other competitors in such situation.
b. Based on the above, do you think they are your restaurant’s Unique Selling Points?
c. Suggest ways for you to be a Monopoly firm in this industry.
NOTE: Unique Selling Points refer to the uniqueness of your products that other competitors do not have and may take time to copy you or unable to you at all. You may want to refer to the Video for the GroupWiki as well to have some ideas on how you can differentiate your restaurant from your competitors.

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