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LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT, DELHI Two Year Full Time Post Graduate Programme in Management (General)

Trimester- 1

Course Code: 111001 Academic Session: 2011-12

Course Title: Managerial Economics Instructor: Prof. Shikha Singh

SYNOPSIS Project Title: Economic Analysis of WATCHES A watch is a small timepiece, typically worn either on the wrist or attached on a chain and carried in a pocket, with wristwatches being the most common type of watch used today. They evolved in the 17th century from spring powered clocks, which appeared in the 15th century. Most inexpensive and medium-priced watches used mainly for timekeeping are electronic watches with quartz movements. Expensive, collectible watches valued more for their workmanship and aesthetic appeal than for simple timekeeping, often have purely mechanical movements and are powered by springs, even though mechanical movements are less accurate than more affordable quartz movements. In addition to the time, modern watches often display the day, date, month and year, and electronic watches may have many other functions. We will follow the following steps during the economic analysis of watches:STEP 1 : Demand Analysis Under the Demand Analysis, we will study the Market demand, Market supply and Market equilibrium of the product. We will study the factors that determine the demand of watches and the behaviour of consumers towards the product. The effect of different types of elasticity of demand in decision making process and consumer behaviour will also be studied. STEP 2 : Demand Forecasting/Applications We will apply different techniques of demand forecasting along with the qualitative techniques and quantitative techniques to forecast the demand. STEP 3 : Production and Cost Analysis We will study factors and steps involved in the production of watches and the cost incurred to produce them STEP 4 : Market Analysis Here, we will study and analyse the different kinds of competitions faced by the watches, whether it be Perfect and Pure Competition, Imperfect Competition, Oligopoly, etc. Based on these different competitive situations, we will study the pricing criteria and output decisions. STEP 5 : Market and Competitive Analysis Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor

LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT, DELHI Two Year Full Time Post Graduate Programme in Management (General) Trimester- 1

analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. STEP 6 : Pricing Practices We will try to analyse the different pricing practices followed by the different firms manufacturing watches. We will study the different criteria of pricing like Peak load pricing, Cost plus or markup pricing, Price skimming, transfer pricing that might be followed in case of watches. Following the above mentioned steps, we will try to economically analyse Watches. SECTION A (GROUP 12) NAMIT AGARWAL (115/2011) SAHIL PANDEY (117/2011) KARAN WADHWA (119/2011) RISHAB JAIN (121/2011) V. CHAITHANYA (123/2011) VARUN GUPTA (125/2011)