Managerial Economics

Borton's Development Framework

Description

For the group assignment for this module, we had to consider an everyday good or service, and consider the costs of delivering that good or service to the public. After much discussion with my team mates, we have decided to use Macdonalds, the fast food chain, for our group assignment. As there are various food being served in Macdonalds, we have decided to take McChicken, their most well-known burger, for our group assignment.

The Analysis

For this group assignment, we had to research about the different costs involved in manufacturing a McChicken, such as the fixed and the variable costs. Being able to research about this, allowed us to gain a better understanding of how Macdonalds was being run and their profit making strategy. Having patronised Macdonalds frequently, being able to understand the business structure of it was interesting and insightful. It allowed us to gain a better understanding of how business are run in general and how profit is made from the goods or services provided by the business.

Synthesis

This group assignment was useful and deeply intriguing for individuals who may be interesting in entrepreneurship. It allows students to understand the various costs involved in building a business such as the fixed costs and variable costs. In this case, fixed costs would be rental of unit, purchasing of the griller to grill the meat and so on. Variable cost would include the food supply as it is dependent on the output level.