Assignment 2 Managerial Economics - In 1997, after spending more

Assignment 2. Managerial Economics

 Please review and answer the following question in a 3-pages word document:

In 1997, after spending more than one-half billion dollars in development and after extensive test marketing, Procter & Gamble in partnership with Frito-Lay and Nabisco launched a series of snack food products made with Olestra, a “no fat” substitute. The campaign launch promised that consumers would enjoy the same flavor of potato chips or crackers, but with zero fat. Although touted as a miracle product, Olestra faced a number of uncertainties: ultimate consumer demand, willingness to pay, and pricing; product cost, quality, and shelf life; regulatory approval; and most important, medical side effects (stomach cramps and the ugly specter of diarrhea in some consumers). Use this example and other management cases discussed most every week in the business press to make a list of the many categories of risks faced by managers. In particular lines of business, what categories of risks are the most crucial for the firm’s profit? Provide examples of firm strategies to eliminate, mitigate, or insure against these risks. Make sure to cite at least 2 references in addition to the textbook at the end of the word document.

Assignment 2. Follow Discussion Grading Rubric Instructions Excellent 75 points Detailed response is provided for the question supported with examples. Excellent 10 points Minimal grammatical and/or mechanical errors. APA formatting is used correctly. Excellent 15 points More than three resources references are used Total Points: 100 No Plagiarism Professionalism No Spelling and Grammar Mistakes APA 7 Style Cite Refences If you use outside references, please cite them, and use references, APA style 7th.