MANAGERIAL ECONOMICS PROJECT (TERM 1, 2020-21)

Prof. Tanushree Haldar

A group project is a method of learning through collaboration, teamwork, and exchange of ideas.
Students not only learn from their teachers, tutors and peers but also discover their strengths and
how best to utilize them to the advantage of the entire group. To ensure the success of the group,
there has to be a clear-cut objective and plan of action where each member understands his role
and works cohesively with the others. For this, it is of utmost significance that each group meets,
discusses, and evaluates the progress of the project regularly.

Objective:

The primary objective of this group project is to examine a real-world business using the lens of
economics and draw insights that are relevant for decision making in the industry. The goal is to
encourage students to utilize the Managerial Economics concepts that they have learned (for
instance, demand and supply, costs, pricing etc.) to the “real” economic world and demonstrate
how these theories can be applied to make informed business decisions.

Project Guidelines:

a) Groups: The PGP office will form the groups and inform the class. Typically, a group will
consist of 5-6 students.

b) Product Selection:

• Select any four products that you feel most comfortable with.
• Email your selection of products in order of preference to Ms. Shilpy Gupta at
shilpy@iimnagpur.ac.in. Please note the product will be assigned on a first-come, first-
serve basis and the Instructor will resolve all disputes in this regard.
• Once the product is allotted to you perform your analysis based on the guidelines given
below.

c) Analysis

• The analysis is to be divided in two parts: Industry Level and Firm Level.
• Your evaluation should broach (wherever applicable) but not be limited to the following
elements:
 1) Industry-level Analysis:
i. A brief introduction to the industry (background, overview)
ii. Market structure prevailing in the industry (Perfect competition, Monopoly,
Oligopoly, Monopolistic Competition)
iii. The extent of competition in the industry (leading firms, the role of price
competition, entry threats)
2) Firm-level Analysis:
i. Major product offerings of the firm
ii. Firm’s cost structure for the selected product (main elements of the firm’s fixed
costs, variable costs, sunk costs etc)
iii. Major factors affecting demand for the product
iv. Major factors affecting supply of the product
v. Elasticity of demand and supply
3) Impact of the COVID-19 pandemic on the demand and/or supply within the industry and
particularly the firm

d) Deliverables:

• Interim Report: The Interim report should have the Firm-level Analysis.
The interim report should not exceed 1000 words with a displayed word count.
• Final Report: The Final report should contain your complete analysis reflecting on the
above mentioned points. The report should be your original work and should reflect your
interpretation of the economic theories in the real business world.
The final report should not exceed 2500 words with a displayed word count,
excluding the table of contents and reference list.
• Presentation:
o There will be a group presentation of your report at the end of the term. Each
group will be assigned 10 minutes for presentation, followed by Q & A.

Evaluation:

• The evaluation will be based on how accurately and astutely you use economics concepts
in the analysis.
• Your grade will also reflect the lucidity of the report as well as the confidence,
knowledge, and ability to clarify doubts in your presentation.
• There is a penalty for late submission: 5% of your marks will be deducted for each hour
past the deadlines.
Important Dates:

• Submission of Preferences: August 17, 2020; 8:30 AM (IST)

• Submission of Interim Report: September 17, 2020; 8:30 AM (IST)
• Feedback on Interim Report: September 19, 2020 (to be decided by CR)
• Submission of Final Report: October 11, 2020; 8:30 A.M. (IST)

WARNING: PGP OFFICE POLICY FOR PLAGIARISM WILL APPLY. ANY KIND OF
PLAGIARISM WILL NOT BE TOLERATED AND WILL BE PUNISHED.

Good luck! Have fun!