Assignment 2: Operations decisions
The price elasticity of demand calculated in assignment 1 indicates that the industry for flow-calorie frozen food is a competitive market. The price elasticity was more than 1 showing that a change in price of the food causes a significant change in quantity demanded. The value implies that firms in the market do not have much power to the prices for their commodities. The competitors of the firm include Nestle SA, Kellogg Company, Birds Eye Foods, among other companies. The high price elasticity enables businesses in the market to use pricing strategies in order to attract and maintain customers. Continue reading...