Case Study 1

Price of Pinoy Tasty

Seen to Go Up
Question

1. Do you think the demand for

Pinoy pandesal and Tasty is elastic?
What do you think will happen to
the demand for pandesal and tasty
when prices increased by 15% and
by 100%?
 Answer

 The demand for Pinoy pandesal and Tasty is

elastic.
 When the price of pandesal and pinoy Tasty
increased in price by 15% and 100%, the
demand for pandesal will decrease. The buyer
might look for alternatives or substitute products
which is cheaper and possessed the quality that
is near from the quality of pandesal and Pinoy
Tasty.
Question

2. What do you think will

happen to the supply of
pandesal and tasty if the price
of locally milled flour increases
by 15% and by 100%?
Answer

 When the price of the locally milled flour

increased its price by 15% and 100%, the
supply of pandesal and Pinoy Tasty will
decrease. The tendency is that the
manufacturers or the producers will lessen
the number of products that they will
produce.
Question

3. What are the substitutes for

pandesal and tasty? Do you
think the prices of these
substitute will likewise
increase?
Answer

 Substitute breads like ensaymada, monay, putok,

pagong, sputnik, cheesebread, kalihim, pan de
coco and spanish bread are available in the
market. Since the main ingredient of all the
substitute breads is flour there is a tendency that
the price of each bread will increase for the
reason that the flour used is subject for price
increase.
Question

4. Do you think the

government should
implement a price ceiling
for pandesal and tasty?
 Answer

 For us, the government should implement

a price ceiling for pandesal and tasty to
restrain the manufacturers or the
producers to impose price that is much
higher than the SRP or the Suggested
Retail Price.
Case study 2

P155B from “Sin

Taxes”Project
Question

1. Is the proposed sin tax

progressive or
regressive? Who will be
burdened most? Why?
Answer

 The proposed sin tax for the cigarettes and liquor is

progressive.
 Since, mostly the consumer of liquor and cigarettes
belong to the masses they are the ones who is
burdened by the proposed sin tax.
 Due to the high taxes that manufacturers of
cigarettes and liquor are paying they might pass it to
the consumer. That might be true, but it depends on
the price elasticity of the demand and supply of the
products.
Question

2. Will there be
substitution between
brands? Why?
Answer

Yes, there will be a substitution

between brands.
Yes, when the price of cigarettes and
liquor increased, the consumer might
buy a more cheaper one that sits its
taste and budget.
Case Study 3

Demand for the Big Mac on

the Rise (NYSE:MCD)
Question

1. In this case study, what do you think are

the factors affecting the increased demand
for Big Mac? What about the competitor
food chains? How do you think they are
affected by this increased sales for
McDonalds?
Answer

 The McDonalds grew bigger and wider, and

they retain their new costumers who continue
to come back for a quick meal at value,
because McDonalds offers to families who ties
to spend less during the recession but still
have night out, an alternative to more
expensive dinner out at a local restaurant or
chain restaurant like Applebee's.
Question

2. Do you consider the

demand for Big Mac
elastic or inelastic?
Explain?
Answer

 Inelastic, because even though the

supply of Big Mac decreased they think
for another idea that will solve to their
problem and that is having a family
meal, and not by increasing the prices of
their foods.
Case Study 4

The Rational behind

Attempts of MG Rover to
Forge Alliances
Question

1. What are the reasons for MG

Rover’s diseconomies of scale?
2. Explain hoe innovation and a
good research and development
capacity could have saved MG
Rover.
Answer

 This case was about “The Rationale behind attempts of MG Rover

to forge alliance.” It enlightened our minds where the company
found itself at the start of the new millennium.
 On this case, there were reasons for MG Rover’s diseconomies
of scale such as lack of production volume, lack of R&D capacity,
poor model range, negative publicity and lack of cash. The first
one was “lack of production volume”, it showed how the top five
car produced all manufactured over three million units a year each
in 2003. Also, it said that without new models there had a chance
that the sales would decrease.
 Secondly, the “lack of R&D capacity” or the Research and
Development (R&D) combined with its lack of production
volume; MG Rover lacked any ability to perform serious
innovative research itself. The third one was the “poor model
range”, it explained the result of the model gap that the market
share in its only real market was uncontrollable. MG Rover
simply did not have the full range of model to keep attracting
younger customers.
 Meanwhile, at fourth, “lack of international market” pointed
out the known brands which were Mini and Land Rover. This
weakness repeatedly hindered Rover over its history.
 Also, it simply did not have the distribution network to
sell them internationally to gain volume and higher
marginal profits.
 In addition, the “negative publicity” emphasized the
lower sales of MG Rover because the public didn’t want
to buy a brand that might not exist next year. Lastly, the
“lack of cash”, its main problem of MG Rover was the
cash. It said that without a rich parent pumping, there
was no one who would cover the day-to-day losses it was
making.
Answer

 This case emphasized how the MG Rover innovated in order

to develop the capacity to save MG Rover. Even though,
there were barriers such as lack of production volume, lack
of R&D capacity, poor model range, lack of international
market, negative publicity and lack of cash. These problems
had a solution given by each problem.
 On the first problem, it said that the key to success in the
automobile industry is either volume or a successful niche
product. With this, it may get economics of scale which could
carry the high costs of developing a new model.
 On the second problem, it deprived Rover of most of its R&D capability
which was vital in today’s car market where constant innovation is the key
to success. Moreover, on the third problem, the strategic alliance with
Honda was probably Rover’s best chance of success wherein Honda
allowed to access to the UK market and Rover. They had also developed
five models before the break-up of their alliance.
 Furthermore, on the fourth problem, Rover had still used technological
experience which was marketable in regions. So, China got interested to it.
China had the mass market that would allow it to scale up production in a
low labor cost economy. On the fifth problem, MG Rover needed the
imprimatur of another successful company by having the successful
alliance. Finally, the last problem was lack of cash; it needed to forge
alliance to rectify problems. It needed technology, a new model range, and
boosting connection with another firm. But most of it all, it needed cash.
 PROPONENTS:

 
Clarize Roxas
Clarish Calceta
Princess Cynel Padre
Ceylon Giron
Ma. Lourdes Manalang
Precious Wency Ranjo

 16 March 2018

END