Managerial Economics

  

Lester Scholl, Chairman of the Board at AutoEdge, told you during your interview for this job that the company has been floundering since product quality issues caused millions of automobiles to be recalled. He’s phoned this morning to explain what he wants you to focus on initially.”So have you settled in to your office?” he asks.”I have,” you say. “I think I have everything I need. What can you tell me about my first assignment?””I’m glad you’re eager to get started with work,” he says. “The board is considering several proposals in response to our situation, and we need you to create a list of the legal, cultural, financial, and economic factors that AutoEdge needs to consider about the location of our manufacturing operations. Most members of the board aren’t familiar with this aspect of the business, so we want you to briefly describe the factors you list, rank the factors, and explain your reasoning. Be specific when you explain so the board understands your rationale.””Do I need to conduct the research, as well?” you ask.”We just need you to list and describe the factors at this time,” he explains. “You don’t need to actually do the research.””I can do that,” you say. “When do you need it?””Send it to me by the end of this week so I can review it before the rest of the board gets copied,” he says.”No problem,” you say. “Can you give me an idea about how detailed you want me to be?””I don’t want it more than 800 words,” he says. “Between 600 and 800 words, I’d say.””OK, I understand” you say. “Thanks for your call.”Origianal only please

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