Applied Economics for Managers

Project 1: Applied Economics for Managers
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Scenario

You have recently been hired as an economic analyst by Maryland Creative Solutions LLC (MCS), a company specializing in mergers, acquisitions, and consulting. Prepare for your first day by reviewing your job description below:
You’ve been in your new analyst role with Maryland Creative Solutions, LLC for a few days and are finally getting used to the rapid workflows and office culture. After a competitive bidding process, MCS has signed a consulting contract with ExxonMobil. You receive an email from senior partner, Frank Marinara, tasking you with your first assignment to support the project.

INBOX (1 NEW EMAIL)

From: Frank Marinara, MCS Senior Partner

To: You
Now that you’ve settled in, I need your help with an industry analysis. ExxonMobil accepted our consulting bid, and now the CFO needs us to assess its positioning within the oil and gas industry. I would like you to analyze the data provided. We need to know the price and quantity of crude oil where equilibrium exists, and it will be helpful to discover the market structure of the industry. I will need this done by the end of this week.
If it goes well, I’ll also need you to investigate price elasticity so we can advise the client on a pricing strategy for one of its local franchisee stations.
Two weeks from now, I’d like you to attend a special project meeting with senior consultants from across MCS. Keep in mind, you will be the only employee in the meeting that is not on the senior consultant level, so please be as prepared as possible. The meeting has been called to discuss world oil price movements and their impact on ExxonMobil’s business. Come ready to discuss the world oil price movements expected within the next few weeks.
Finally, I’ll be asking you to develop an executive summary based on your work on this project.
Follow the project steps to get started on the industry analysis for ExxonMobil.
Best,
Frank

Click Step 1 to begin your work on this project.

When you submit your project, your work will be evaluated using the competencies listed below. You can use the list below to self-check your work before submission.
· 1.3: Provide sufficient, correctly cited support that substantiates the writer’s ideas.  
· 1.6: Follow conventions of Standard Written English.  
· 1.7: Create neat and professional looking documents appropriate for the project or presentation.    
· 3.1: Identify numerical or mathematical information that is relevant in a problem or situation.
· 3.2: Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.
· 3.3: Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.
· 3.4: Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.
· 5.3: Create, implement, and evaluate a personal leadership development plan.
· 6.2: Evaluate strategic implications for domestic and international markets of an organization’s industry.
· 10.1: Apply relevant microeconomics principles to support strategic decisions for the organization.
· 12.1: Assess market risk and opportunity.

Step 1: Complete Skills Gap Analysis

As you’re about to get started on your assignment, the Human Resources department at MCS sends you an email with an attachment requesting that you complete a self-evaluation of your skills.

INBOX (1 NEW EMAIL)

From: Jennifer Craylin, Human Resources Generalist

To: You
I hope this email finds you well, and that you are settled in at Maryland Creative Solutions. It is Human Resource policy to request your completion of a performance self-evaluation. Please use the attached skills gap analysis file to self-evaluate your work-related knowledge and skills before beginning work on your assigned projects.
The skills gap analysis will help you identify the skill areas you want to enhance. You will be completing another self-evaluation in Project 5 to measure the gains in competencies you have developed through working with MCS.

Complete your preliminary skills gap analysis by the end of Week 1. Carefully follow the instructions below:

· Use the attached skills gap analysis file to self-evaluate your course-related knowledge and skills before beginning your work with MCS. Use the 

Week 1 worksheet

(see attachment) to complete this step.

· From each major category, select a gap you would like to work on reducing during the next 10 weeks to help you achieve your long-term career goals.

· Decide what activities you will engage in to acquire the knowledge and hone the skills you have identified. Think creatively, and consider all appropriate resources, such as conferences, books, free online classes, mentorship, coaching, observation, professional associations and groups, networking, volunteering, and journaling.

· In the text box provided in the skills gap analysis file, include a summary of no more than 200 words describing the gaps you will work to reduce and the activities you will pursue to do so.

· Submit your updated skills gap analysis to the submission folder located in the final step of this project.

Thank you,
Jennifer
ATTACHMENTS

Step 4: Discuss World Oil Price Movements

The days are passing quickly now. Week 2 starts slow, but an email from Maryland Creative Solutions’ Managing Director, Elisa Izuki, changes the pace.

INBOX (1 NEW EMAIL)

From: Elisa Izuki, Managing Director

To: You and Frank Marinara, MCS Senior Partner
Good afternoon,
I am requesting your attendance at the upcoming junior partner meeting. The primary objective of this meeting is to discuss the concerns held by ExxonMobil about world oil prices. Based on your analysis last week of the oil and gas industry’s economic model, I’d like you to contribute your insights to the project meeting. Looking forward to having a productive and informative working session.
Sincerely,
Elisa

This is a good moment for you, as you are the only employee in the meeting that is not at the executive level. This is your time to shine!
As the meeting approaches, Frank briefs you on the key points of discussion:
· Exxon has been concerned about developments in the world supply of crude oil. Both Venezuela and Iran have very significant proven oil reserves. Both countries are under sanctions from the US to restrict or prevent them from selling oil.
· To put things into perspective, the world production of crude oil is just over 100 million barrels per day. The U.S. produces about 12 million barrels and all of OPEC about 30 million barrels. As of early 2019, Venezuela produces just over 1 million barrels down from a peak of 6 million barrels. Iran also produces over 1 million barrels.
· Both Venezuela and Iran need the “hard currency” that comes from the sale of crude oil and refined products. 
· Russia and China have the technology and expertise to help these countries expand their production and sale of oil.  However, Russia relies on the sale of its own oil and gas as a main source of income and has an incentive to avoid the decline of oil prices when Venezuela increases production.
· MCS has been tasked by ExxonMobil with looking at new research into the world price of oil. Find one current article about the price of crude oil and post it in the discussion.   Discuss the likely price movements of oil over the next few weeks. What are the analyst’s main concerns? Please provide a link to any sources that you use.

When you have finished Step 4, proceed to Step 5, where you will present your recent findings from Steps 1 through 4 in an executive summary.

Step 6: Submit Your Work

Thank you for all your work with Maryland Creative Solutions. Take note of the recommended deliverable in the table below:
Recommended Project Delivery

Skills gap analysis

lastname_firstname_skills_gap_analysis.docx

Skills Gap Table

lastname_firstname_skills_gap_table

World oil prices discussion

Submit discussion post in the world oil prices discussion section in Step 4