Expert answer:American Airline Company

Solved by verified expert:The final project for this course is the creation of an economic analysis recommendation paper.
This course is an integral part of your journey toward a better understanding of the economy and of how the business you work for fits into it. The manager who
excels at his or her job is able to make the connection between general theory and specific application. Your final project provides you with the opportunity to
practice and develop these skills. In this course, you will learn about economic principles—supply and demand, production and costs, market structures—and see
how they apply to real-world situations. You will also learn about economic forecasting and tools used in strategic decision making. Being able to see the big
picture and having the skills of economic analysis will help you become more effective as a manager. Although there are several general principles that hold in
most organizations, such as trade-offs in the use of resources and customer budget constraints, the circumstances in which these principles apply are unique.
In this project, you will take on the role of an economic analyst at a company. An executive at the company has asked you to research an issue that affects your
organization and recommend a solution. Choose from one of the case studies listed below and research a given issue that affects the organization, determine the
issue’s relationship to economics, and report on your analysis and recommendation. This assessment requires you to understand the big-picture context of a
question, narrow down to a specific statement or set of statements to research, and present your findings.
You may encounter additional companiescase studies within your ECO 500 Case Study CoursePack. However, please disregard them and ONLY focus on the
following:
– American Airlines
– Microsoft Corporation
– Heinz Corporation
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three, Five, and Seven. The final product will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
 Apply economic theory to real-world problems facing organizations for identifying relationships and root causes
 Recommend appropriate economic solutions to business problems for promoting organizational goals
 Translate economic principles and findings effectively to diverse professional audiences for promoting informed decision making
 Determine how the industry market structure and the U.S. economic system influence strategic business decision making
 Analyze economic data through application of mathematical and statistical concepts for informing economic decision making
2
Prompt
In your paper, you will take on the role of an economic analyst at the company in your chosen case study. You will interpret the topic presented within the context
of your organization, analyze it within an economic framework, and translate the results and any recommendations in an easily presentable way.
Specifically, the following critical elements must be addressed:
I. Identification of the Issue: Describe the context of the issue that was presented to you and the specific statements that you will research.
II. Research: In this section, you will apply economic theory and quantitative analysis to your research topic.
A. Select an economic model to apply to the issue presented and justify why it is appropriate for the issue presented.
B. Apply the selected economic model to identify the root cause(s) of the presented issue.
C. Describe the relationship between the economic factors that you identified and the presented issue.
D. Using mathematical concepts, illustrate the relationships between economic factors and the issue.
E. Describe the market structure of your organization’s industry.
F. Determine how the market structure of the industry influences the issue. Support your response with relevant examples from the case.
III. Recommendation: In this section, you will recommend an economic solution to your research topic.
A. Develop a recommendation for a logical economic solution to the presented issue.
B. Predict trends and impacts related to your recommended solution, using the quantitative relationship between economic factors.
C. Defend your predicted trends and impacts, using quantitative data to explain your logic.
D. Describe the influence of the market structure on your recommendation.
E. Present your recommendation in a way that is consumable for a diverse audience.
IV. Conclusion: In this section, you will summarize your research and recommendations.
A. Explain how your recommendation promotes the goals of your organization.
B. Predict potential implications if your recommendation is not accepted. Why is this important to your organization?
C. Summarize your research in a way that is suitable considering your intended audience.

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