Micro Economics Assignment 1

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Case Preparation Questions What factors determine the demand for blades? How can demand be increased? How is Gillette doing in Indonesia? Has Gillette leveraged its first mover advantage? How should Gillette accelerate the development of blade market in Indonesia? Refer the contribution calculations for Allan 1996 (E) growth estimates of 19% in the excel template, attached. You may calculate the contribution of different products for Effio 1996 (E) for 27.5% growth. Further, prepare an income expense statement for 1996 (as in Exhibit 3/ 4) based on revised 27.5% growth estimate of Effio. (you may assume the same product mix of Allan 1996 E for estimating contribuions for Effio's growth estimate of 27.5%)

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Intra Curve Change:Crude oil prices declined last week because global oversupply is rapidlyfilling oil stockpiles. Total oil production in 2015 is expected to rise to 9.35 million barrels per day, slightly higher than the 9.3 million barrels per day forecast last month.U.S. commercial crude oil inventories rose by 4.5 million barrels from the previous week. At 448.9 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years. Because of oversupply of crude oil in US the price of the crude oil is decreased.Reference:http://www.ibtimes.com/why-are-oil-prices-falling-here-are-four-reasons-crude-prices-continue-trend-lower-1848742

Inter Curve Change:The fear of badmonsoonhas suddenly hiked the vegetables and fruits prices by 300% from the farm to your dining table.The prices of most of the widely consumed vegetables have shot up during the last two weeks in most parts of the country with the early onset of monsoon rains. The sudden increases of vegetables prices have seriously hit the common men mainly in the metro cities.Reference:http://www.business-standard.com/article/markets/vegetable-price-rise-changes-lifestyles-of-many-113070600213_1.html