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TITLE OF ASSIGNMENT Economics & Statistics: Stark Air Limited: Analysis of Potential Strategies Month and year of submission APRIL 2007 Table of Contents 1. Introduction 3 2. Evaluation of Potential Strategies 4 2.1 Price Reduction by 10% 4 2.2 Interpretation 7 2.2.1 Excel Calculations: LOWERING PRICE %10 7 2.2.2 Interpretation 8 2.3 DOUBLING THE ADVERTISING BUDGET 8 2.3.1 Interpretation 9 2.4 THE MAXIMUM ADVERTISING BUDGET 9 2.4.1 Interpretation 10 3. Discussion 10 3.1 Price Reduction by 10% 10 3.2 Doubling Advertising Budget 11 3.3 Possible Alternatives 11 4. Bibliography & Reference 11 1. Introduction Stark Air manufacturing company limited is a customer-focused, service-orientated company that is firmly established and recognized as a leader in the market and a leading manufacturing company is industrial air extraction units and is concerned that, as the market leader, they should be able to make higher profits than they currently are in order to achieve competitive advantage and capitalize on economies of scope. The company produces specialised industrial air extraction units and is concerned that, as the market leader, they should be able to make higher profits than they currently are. The...

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