ENG ELC 220 Lecture Notes - Lecture 7: Extensive-Form Game, Opportunity Cost, Military Cross

• School: LACC
• Department: Electrical Engineering
• Course: ENG ELC 220
• Professor: Saw

Document Summary

This summary includes answers to the questions in the textbook and the icas course book. They derive recommendations by studying past performance (backwards perspective) They make common sense and are therefore taken as proven fact. Their claims are not scientifically proven as they are based on subjective observation. They did not undergo empirical testing nor peer review. The success of one firm is due to a complex system of factors and not necessarily its strategy. 4 critical issues for successfully formulating and integrating strategy: boundaries of the firm (part i, market & competitive analysis (part ii, positioning and dynamics (part iii) Law of demand: all other things being the same, the lower the price of a product, the higher the demand. Whether more units sold lead to higher revenue depends on the price elasticity of demand. Case of pepsi: lower price higher revenue price elastic.