MBA 5010 Week 1 Assignment

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Webster University *

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5010

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Business

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Feb 20, 2024

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MBA 5010 Week 1 Part A For each of the following resources, name at least two (hypothetical) competing potential uses for that resource. Then describe how the market process determines to which use the resource will eventually be allocated. Question 1 - A parcel of vacant land located at the intersection of two streets used heavily by commuters Use 1: One possible use of the parcel of vacant lot is for a gas station. Use 2: One possible use of the parcel of vacant lot is for it to become a green space. The market process will determine if a gas station is needed. If there are no gas stations in that area but the population is growing and people must travel far to purchase gas, the market would allocate the resource to the gas station. Leaving the vacant lot for green space would not generate profit but would satisfy those in the population that may be anti-development, are not car owners or just simply do not mind traveling far to purchase gas, therefore, it will have no value to their life to have a gas station at the intersection. Question 2 - A semi-tractor and trailer owned by a private trucker Use 1: One possible use of a semi-tractor and trailer owned by a private trucker is to specialize in transporting HAZMAT material across state lines. Use 2: One possible use of a semi-tractor and trailer owned by a private trucker is to lease their trucks to other truck drivers. In the current market (with recent supply chain problems and workers hesitant to go back into the work force) there would be reduced need for non-owner operator/drivers to lease from the private trucker. The private trucker would enter a niche market that may not necessarily be affected by supply chain delays. HAZMAT materials must be always transported (with or without COVID restrictions). This would position the private trucker to become one of the highest earners in the trucking industry. The market would determine that time/equipment resources would favor the private trucker entering the niche market. Question 3 - A web-designer with particular expertise business web development
Use 1: One possible opportunity for the web-designer is to join a startup company that needs to create an online presence Use 2: One possible opportunity for the web-designer is to become an online for-fee instructor on web designing to other web designers. The current market would allocate resources to the web designer joining the startup company. Web designers are in high demand since startups utilize technology and specifically social media to generate interests in their company, web pages are used to conduct online transactions, payments, support, etc. As a stakeholder, the web-designer would be risking their livelihood on the success or failure of the startup. In contrast, becoming an instructor to other web designers would be against their own self- interest by increasing the number of competitors for future web design jobs. Question 4 - Fitness Fanatic is a startup fitness center located in Louisville Kentucky. Its innovative model of combining social networking, exclusive branded apparel, and an invitation-only fitness center has led to substantial revenue growth. Describe how Fitness Fanatic exemplifies the “opportunity seeking” dimension of value creation. Fitness Fanatic exemplifies the “opportunity seeking” dimension of value creation by creating a unique by invitation-only fitness center that would stand out from its competitors. The exclusivity of its model, branding and social networking differentiates from the traditional fitness center. Fitness Fanatic is targeting a particular segment of the population that may “value” the experience and is willing to pay for it. Question 5 - Integrated Freight utilizes artificial intelligence to route freight across multiple carriers and modalities (e.g., train versus truck). The result is that Integrated Freight is able to reduce long distance freight costs by an average 20%. Describe how Integrated Freight exemplifies the “efficiency seeking” dimension of value creation. Integrated Freight exemplifies the “efficiency seeking” dimension of value creation by incorporating a new technology (AI) into its operations to reduce the cost of transporting freight. Integrated Freight is improving its margin by reducing costs in its operations/outbound logistics and allocated resources (of money and time) more efficiently. As graphically explained in Porter’s Generic Value Chain:
The result of reduced time in one area of its primary activities increases efficiency and reduces freight costs by an average of 20%. Part B (25 points) This week you are to complete a fully complete draft response to the following questions. You are to complete this draft without assistance from either current or former MBA 5010 students. This draft response will be evaluated on completeness and clarity but not graded for content. Next week you will be given an opportunity to collaborate with your peers to complete a final response. “…profit-seeking firms create value for the owners, customers, and other stakeholders by continually driving the economy toward an ever more efficient allocation of resources.” The Earth Institute at Columbia University hosted a roundtable on the Sharing Economy. While there are significant sustainability implications of the sharing economy, these are only tangential to our interests. I want you to watch the roundtable discussion, follow up by pursuing your own independent research, and then write approximately 500 words addressing the following. What is meant by the “sharing economy”? How does the sharing economy better allocate underutilized resources? In so doing, how does it “create value”? https://blogs.ei.columbia.edu/2017/10/26/the-sharing-economy-is-transforming-sustainability/ Respond here
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