Productivity/ Game Theory

1A. Many times trade-offs are necessary to increase productivity. What are important trades-offs involving the inputs to productivity? Your initial post should include real life situations and be at least (300 words)

Guided Response: Respond to at least two of your classmates’ posts and identify specific trade-offs. Give additional advice and alternative ways to increase productivity for the future.

1B. Read the Forbes article, “The Forces That Are Transforming How Products Are Made (Links to an external site.)Links to an external site..” Based on the content presented in the article, what forces and important organizational activities enable a firm to build quality into its products? Explain each of these along with their benefits. Your initial post should include examples and be at least (300 words) Respond to at least two of your classmate’s posts.

2A, Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

Game Theory and Strategic Behavior

Suppose that GE is trying to prevent Maytag from entering the market for high efficiency clothes dryers. Even though high efficiency dryers are more costly to produce, they are also more profitable as they command sufficiently higher prices from consumers. The following payoffs table shows the annual profits for GE and Maytag for the advertising spending and entry decisions that they are facing.

GE

MAYTAG

Advertising = $12m

Advertising = $0.7m

Stay Out

$0, $30m

$0, $35m

Enter

$1m , $20m

$12m, $15

Based on this information, can GE successfully prevent Maytag from entering this market by increasing its advertising levels? What is the equilibrium outcome in this game?

Suppose that an analyst at GE is convinced that just a little bit more advertising by GE, say another $2m, would be sufficient to deter enough customers from buying Maytag, thus, yield less than $0 profits for Maytag in the event it enters. Suppose that spending an extra $2m on advertising by GE will reduce its expected profits by $1.5 m, regardless of whether Maytag enters or stays out. Would this additional spending on advertising achieve the effect of deterring Maytag from entering? Should GE pursue this option?

Guided Response: In 300 words or more, please, provide your response to the above discussion question. Please, show all your calculations and explain your responses. Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.

2B. Describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage. What about the situations when a differentiation strategy is chosen? Provide specific real world examples.

Guided Response: In 300 words or more, please, provide your response to the above discussion question. You may research the current events websites listed in the recommended resources for ideas of real world examples. Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.

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