Week Four

Subject:   Recommendations Based on Economic Projections - Larson Inc.

We wish you all are going to have a wonderful day full of blessings. We want to remind all of you that you all are a great team and we are very proud to belong to this team, plus we are sure that you all give the best of each other to achieve the goals of the organization.
As is know for you all, the organization has been facing hard decisions and factors in the economy. Based on economic projections we need find ways to reach out globally; for this reason we are going to recommend three actions to achieve growth and success of Larson Inc.   they are:

  * Larson should prepare for growth based on a U-shaped recovery following years of global recession. We know that the company has changed its organizational structure to a more centralized in which the corporate level personnel approves and reviews decisions of high importance. This type of structure allows assist in employing a more global strategy to all markets, and provides products at lower prices because of the “lower per-unit cost associated with its economies of scale” (McConnell, Brue, & Flynn, 2009, Barriers to Entry, para. 2). Some economists have been predicting a U-shaped recovery (Newsweek, 2010). However, we consider that the company needs to prepare for growth based on a V-shaped and W-shaped recovery as well.

      * Generate nonprice barriers to entry, including economies of scale, and patents and licenses. Nonprice barriers for Larson Inc. should stay consistent in the economics futures for the next five years. Controlling costs by employing economies of scale, marketing campaigns informing consumers of battery superiority, and maintaining low prices should be the focus. Nonprice barriers to control costs will keep the selling price low until the German economy strengthens, which will be essential in an oligopoly market structure. Promoting Larson Inc. replacement batteries as superior and the battery of choice will...