If you think you’ve upped your ability to quickly consume a bag of Doritos, give yourself a break and blame shrinkflation.
1. If you think you’ve upped your ability to quickly consume a bag of Doritos, give yourself a break and blame shrinkflation. There were probably fewer chips in the bag this month than just a few months ago. With inflation reaching levels that haven’t been seen in decades, companies are facing rising costs for everything from wages to raw materials to shipping. To avoid raising prices and possibly alienating consumers, many companies are turning to shrinkflation, a strategy that involves reducing the amount or quality of the product or service delivered but keeping prices the same. That bag of Doritos for example, has shrunk from 9.75 ounces to just 9.25 ounces. Why don’t companies just raise prices? It can be easier not to. Research shows that even though price per unit information is often available, most buyers still look at the overall price when making buying decisions. By cleverly redesigning packaging or even the product itself, companies can trick buyers into essentially overlooking the fact that they are actually paying the same amount of money for a lesser product or service. So, while the actual bag of Doritos might not look that different, reducing the number of chips inside saves the company money.
While a shrinkflation strategy is common for consumer products, service companies are using it too. Hotels for example, might not swap out sheets and towels as frequently as they did in the past, saving on labor and laundry expenses. Restaurants might offer a QR code instead of a printed menu, while banks encourage electronic statements instead of more costly paper versions. Companies engaged in shrinkflation may try to position visible changes as being beneficial to the consumer. The hotel that no longer offers fresh towels daily may suggest, for example, that by reusing towels, the customer is making a choice that benefits the environment. While potentially this is true, it also means lower labor costs for the company. So, the next time you do a double take when you get to the bottom of a carton of ice cream much faster than usual, take comfort in the fact that you’re probably experiencing shrinkflation, not a bigger appetite.
Discussion Questions:
a. Why is it easier for companies to engage in shrinkflation than simply raise prices?
b. While shrinkflation is common among consumer products companies, service companies also use the strategy. Discuss the risks of shrinkflation for service companies. Could, for example, a hotel damage its reputation by reducing the number of times it replaces towels and sheets? Would a yogurt company that reduces the size of its packaging face the same issues? Explain.
2. Utilizing the Occupational Outlook Handbook published by the bls.gov, see https://www.bls.gov/ooh/ (Links to an external site.)
I want you to research the career field and area that “best suits your current aspirations”. Do some investigation into median pay, job growth opportunities, training, education requirements, etc.,
What career fields are the highest paid and why? [Think scarcity of resources].
Summarize your findings for this question. Please pay attention to detail and use your own wording based on your findings here and other sources. Cite at least 3 sources for your answer.
3. The theory of efficiency wages is defined as: wages that are higher than the market equilibrium. Firms that pay efficiency wages could lower their wages and hire more workers, but choose not to do so. Some reasons that managers might choose to pay efficiency wages are to avoid shirking, reduce turnover, and attract productive employees. This theory is directly related to worker productivity. Give your opinion on the merits of paying “above minimum wage to workers” and the benefits a firm could accrue by doing so. You may cite examples, and also consider how this theory could impact your role as a manager in the future. What are the pros and cons a firm must consider before paying workers a higher than market wage rate? Please make sure to cite all of your references. Please use at least 3 references and 1-2 paragraphs as your answer for full credit. Consider the tightness of the current labor market and argue whether or not this would be an effective strategy to recruit better talent and retain workers.
https://smallbusiness.chron.com/theory-efficiency-wages-15428.html (Links to an external site.)
https://sba.thehartford.com/managing-employees/pay…
4. Based on the items discussed in Chapters 33 & 34 (and your research in the last discussion post) regarding how fiscal and monetary policy can adversely or positively affect the laws of aggregate demand and aggregate supply, this question will test your knowledge further.
The rationale is that public policy, as set forth by either the President and Congress or the Federal Reserve can have immediate and lasting impacts on the overall health of the U.S. economy through the aggregate demand and aggregate supply curves. For instance, a tax-cut proposal (stimulus check refund) essentially puts more discretionary income into the hands of consumers and increases spending levels, thus shifting out the aggregate demand curve, and expanding growth.
You do not need to draw a graph but do need to pick one policy platform and explain how it could affect total output, prices, etc.,
While drawing a graph is difficult here, you are just challenged with picking ONE public policy item, and using at least 3 sources to describe how you think the long-run outcome will affect the overall economy? This may be in the area of prices and inflation, unemployment, or economic growth.
You can take the optimistic side of a policy tool or the protagonist’s side, and argue a policy tool will cause harm to economic growth, inflation, or unemployment.
While I am interested in your creativity and research skills, this does come down to your opinion but it must be substantiated by sources and documented ones.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
