Economic Principles and Decision Making Harvard Case Solution & Analysis


Schemeckt Gut has contemplated to launch a new product in Atollia i.e. energy bar Schemeckt Besser. For the purpose of introducing the product, the company is in need to perform the market research in order to better understand the demand of the particular product. The company has to follow some principles in order to pursue this job. The principles that the company can follow include people face tradeoffs, people most likely forego one thing while choosing another thing, rational people think about the incentive and margin can attract the people that has to be pondered by the company. However, the ultimate aim of the study is to carefully conduct the analysis of market which would later assist in evaluating the demand of the product, consumer choices and the market nature. The analysis of the market might be performed from the data extricated from primary and secondary data.

Here, the choice of the people always plays significant role whether the new product would be able to capture the new market of Atollia or not.

Problem A

Different projections:

In the study, the company has different projections as there is an increase in the tariff and income. For instance; in the data there is a 10% increase in the tariff and 5% increase in income. The increment is supposed to be viable for the company because in case of increasing tariff by government of the country, there would be a hike in product’s price.

Economic Principles and Decision Making Harvard Case Solution & Analysis.'


The company becomes unable to go forward without having supply line. So there should be a strong supply line. Schemeckt Gut should be aware of the supply line and they have to select the better process of production that would ultimately help in increasing or decreasing the product’s supply according to the market or consumer demand. The quality of the product can be changed with the highly equipped production process, also the product’s nature plays effective role in the quality of product (Obizhaeva, 2013). It is being indicated that the power of the company can be changed through better supply line; it can help the company in becoming the market ruler.


Another tough task is the analysis of demand, so Schemeckt Gut have to carefully analyze the demand and supply line of the company; it is notified by He & Zhao that to make the supply line stronger it is important for the company to spend its efforts and time on the demand analysis. (Zhao, 2012). In order to better analyze the demand, the company could take primary or secondary data, also the choice of customers should also be analyzed because it would be reflected in the market demand.

The new energy bar is based on the choice of the customer; however if the needs of the costumer would be fulfilled, the company would flourish and would gain highest market share. Based on the data, the demand is increasing from year 1 to year 5 but there is a small fall in year 6. This can be seen in the provided exhibit.....................

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