Group Case Study Project. Pfizer Inc. and McDonald’s Corporation Case Study

This is a group assignment. 

Group Case Study Project • Due no later than 11:00 p.m. on Thursday of Unit 11
• Worth 25% of final grade
• Length: Eight pages of content, APA double-spaced.
Note: For time management purposes, students are strongly advised to submit their assignments by the duedate above, relative to their local time zone. Late penalties, however, will not be applied until after 8:00 a.m.Atlantic Time the following day.
Late Submission Policy
• This assignment is subject to the Late Submission penalty policy, namely 5% per day for three days.
• The Submission page will close and will not allow further submissions after the Late Submissionperiod has expired.
• In the event of an emergency preventing you from submitting within this time frame, specialpermission must be obtained from your instructor. Documentation substantiating emergency isrequired. In such a circumstance, if the extension is granted, the professor will reopen the submissionfunction for you on an individual basis.
• Please do not email your submissions to your professor, either before or after the due date; allcoursework should be submitted through the online course (Moodle).
Objectives
• Compare and contrast the market types of two major corporations.
• Determine the various key elasticity indicators of these companies and the main goods they produce.
• Analyze the market of each corporation to determine their competition, and any substitute,complementary goods, or services.
• Determine the relative value of each company, its potential future growth, and makerecommendations as to whether one is a better investment than the other.
• Work constructively and collaboratively in a small group to produce an engaging and informativepackage.
Required Materials
• Review all the required chapters from the course textbook:
Ragan, C. T. S. (2020). Ragan Microeconomics (16th Canadian ed.). Ontario, Canada: PearsonEducation Canada.
• Business journal databases from Yorkville University Library
• Online research on Pfizer and McDonalds
Description
In this group case study project, you will join forces with three of your peers to make an investmentrecommendation on either of two corporations: Pfizer or McDonalds Corporation. The task for your team willbe to compare the two companies based on both the supporting information and any external research that youconduct, and ultimately recommend one over the other as having stronger investment potential.As a further twist, your team will have some competition. Other teams will be given the same opportunity toprepare their information package on the same two companies using the same case studies as a starting point.Consequently, your team should try to package your information and recommendation that is the mostengaging, creative, and persuasive.
Instructions
This project will develop in four parts. Each part will have some submission due each unit according to theschedule below. While none but the final will be graded separately, failure to submit any part on time will bereflected negatively in the grade:
• Part 1 - By the end of Unit 3 students will have been assigned to a group, which will meet online inthe Group Case Study Project Discussion Forum (found in Units 1-2) and brainstorm a strategy(ungraded, but with feedback).
• Part 2 - In Unit 4 the group will submit a Learning Team Agreement, which will spell out who isresponsible for what in the packaging of the information, and a list of their research sources(ungraded, but with feedback).
• Part 3 - In Unit 10 the group will submit a draft of their project report, but without theirrecommendations (ungraded, but with feedback).
• Part 4 - In Unit 11 the group will submit their final package (project report and presentation),including their recommendation about which company the team recommends. The final packageshould incorporate feedback from Parts 2-3. (Worth 25% of project total)
Report ContentThe report should not exceed EIGHT content pages (excluding cover page, table of contents, references,appendices, etc.). Do not exceed the page limit. Use only the following SIX titles for your report’s content:
1. Introduction
2. Company profile, product and industry position
3. Financial performance
4. The Market: Demand, Competition, Rival and Complement products, and Consumer targetsegments
5. Strategies and initiatives for efficiency, profitability, and sustainability
6. Future outlook and investment recommendation
Approach to Writing
Write this report in comparative mode for all sections. In each paragraph compare and contrast both companieson you are focusing on in that paragraph. Make it a running comparison on each aspect you evaluate instead ofwriting about each company separately. For example, when comparing financial assets, you may write, “Whilethe market capitalization of McDonalds as of July 2019 is $162.63B, Pfizer’s stands at 45% higher at$235.74B.
At the end of each section, state which company is superior based on the metrics you just examined andexplain clearly to your investor what this information means with respect to profit/returns for now and thefuture.
Guiding Questions for this Assignment Q4，7，11，15
As your team conducts research on the companies to obtain appropriate information for making a financialinvestment in either company, here is a list of relevant questions to improve your comparative analysisbetween the two companies:
o What is the current financial situation of the company?
o What kind of market/industry structure (Perfect Competition, Monopolistic Competition,Oligopoly, or Monopoly) does the company belong to?
o What is the Price Elasticity of Demand for the goods that the company sells? Is the demandelastic or inelastic?
o What kind income elasticity the product(s) of the company face?
o Who are the company’s closest competitors? 
o Are there any close substitutes or complements?
o Is the demand for the product of your chosen company growing? Explain why.
o Can the labor force of your chosen company be trained further to increase productivity andlower cost of production?
o As a business is your chosen company profitable? Will it be able sustain profitability?
o How can it make its profit grow?
o What is the price elasticity of demand for brand name drugs? Is it elastic or inelastic? Howabout fast food?
o What is the Income Elasticity of demand for these products? Which one has the higherincome elasticity and why?
o What is the cross price elasticity of demand (if any) between the main products of the twocompanies? What about among Pfizer’s main products and related products, and amongMcDonalds’ main products and related products?
o Which company has higher fixed costs? Which has higher marketing costs? Why?
o What other issues with regards to the social, political, labour, legal or environmentalpractices of these two companies might you include that could impact your decision?
o What specific innovations or strategies is each company pursuing and how might this impactthe investment decision?
Group Collaboration on Project
Each group has a place to discuss their project in the “Group Case Study Project Discussion” area underDISCUSSIONS in Units 1-2. This is an exclusive area dedicated to your group where you are able to discussany details regarding your project for the full duration of your project.
Project Deliverables
Remember that your ultimate goal is two-fold:
• to provide the best evidence to support the choice of one company over the other as a place to investand
• to do so in the most compelling, informative, and creative way you can.
To that end, your group will need to produce a package consisting of the following:
• An eight-page research report in which all your information about the two companies is organized,the comparison indicators presented, and your ultimate choices for investment are made. Your reportshould be a maximum of 8 pages, double-spaced with 12-point font, not including cover page andreferences. Your paper should follow APA formatting standards. The file should be submitted inMicrosoft Word format only.
• An accompanying media presentation of your findings that will be posted for your classmates in theFinal Case Work Discussion Forum, listed in Unit 11. This can take any form your group has theskills to produce, but it is where your package will really distinguish itself from the others:
• This is not to be a live (synchronous) presentation, but rather the creation of some sort of digitallysubmittable file that will most help support and sell your findings to your client. (If you needmotivation, imagine that your client will only pay for the most interesting and engaging packagesubmitted – your reputations are at stake!)
• It can take the form of a PowerPoint presentation, a photo collage, or an audio or video recording –anything goes. Just be sure that you have permission to use any copyrighted materials (photos, audio,or video), because these packages will be shown to the class online and in our online world, unlikethe brick and mortar classroom, that constitutes “republishing,” which is a copyright infringementunless you have permission.
Select a member of the group to submit your package as a digital document (preferably a single, multi-pagePDF file) to the Submission link below no later than 11:00 p.m. on Thursday of Unit 11. At that same time EVERY member of the group must submit a confidential Peer Evaluation Form in which they will indicate therelative participation levels of everyone in the project work (no slackers allowed!) – Strong evidence that youdidn’t pull your weight will be taken into consideration in the final grading of the project.
Evaluation
The Group Case Study Project will be marked in its entirety out of 100 points. The following rubric indicatesthe elements your professor will weigh to evaluate your work.Activity/Competencies Demonstrated % of
Final
Grade
1. Content (45%)
a. A relevant range of aspects regarding the companies has beenevaluated
/20
b. Research sources valid and robust /15
c. Conclusions supported by research /10
2. Communication (35%)
a. Uses language clearly and effectively (Essay) /10
b. Proper introduction and conclusion to paper (Essay) /5
c. Creative and engaging presentation (Presentation doc) /10
d. Information organized intelligently and holistically (i.e. not simplyanswers to questions) (Both)
/10
3. Attention to Detail (15%)
a. APA Formatting (title, headings & references) (Essay) /5
b. Spelling and grammar (Essay) /5
c. Copyright observed /5
4. Peer Evaluation (5%)
a. Completion and submission of Peer Evaluation Form /5
Total /100
Instructor’s Suggestion on How to Write the Project Report
1. The report should not exceed EIGHT content pages (excluding cover page, table of contents,
references, appendices, etc.). Do not exceed the page limit.
2. Use ONLY the following section headings:
1. Introduction
2. Company profile, product and industry position
3. Financial performance
4. The Market: Demand, Competition, Rival and Complement products, and Consumertarget segments
5. Strategies and initiatives for efficiency, profitability, and sustainability
6. Future outlook and investment recommendation
**VERY IMPORTANT: Writing style:
1. Write this report in comparative mode for all sections. Compare and contrastboth companies on each aspect in each paragraph you write. Make it a runningcomparison on each aspect you evaluate.For example, when comparing financial assets, you may write, “While the marketcapitalization of McDonalds as of July 2019 is $162.63B, Pfizer’s stands at 45%higher at $235.74B.2. At the end of each section, clearly state which company is superior based onthe metrics you just examined. Explain clearly at the end of each section what theinformation means to an investor with respect to profit/returns for now and thefuture.3. Make sure and include ample data and facts to support your arguments fromreliable sources, and cite your sources in correct APA style.4. Since, the FINANCIAL PERFORMANCE section is the most important to aninvestor, pay special attention to it.5. At the end of the paper, come to a conclusion as to which company wins as abetter investment based on an integration of the analyses you wrote in thesections prior.1. Introduction suggestion:McDonalds and Pfizer are leaders in the ________ and ___________industries respectively. The objective of this paper isto______________________________ for the purpose of_________________________________.We intend to achieve this objective by ____________ (whatmethodology?). What the reader will know at the end of this report.2. Company profile, product and industry positionCompare and contrast their size, leadership of their industry, marketsshare, etc.Write in a compare and contrast format, not each company in separately orsequentially. For each item metric you state in one company, compare itwith that of the other company.Who are the other main rivals and what are the market shares of the mainfirms in these industries?Provide some hard data and some specifics about each industry.3. Financial performanceStock price and earnings ratio over the years.Revenue growth and profit trendsAssets, debts, liabilities, etc. on balance sheet data4. Product demand, target market, rival products, etc.Strength of the respective markets for the products, who are the keycustomer segments, what there the biggest revenue producing items, whichcompetitors and products are the biggest challenges?5. Competition:Position of each relative to the competitors.Name of main competitors, relative markets shares and rival products,brands.State what you deduce from the information provided in this section.Any new tactics by rivals?6. StrategiesMarketing, efficiencies, mergers/acquisitions, diversification into newproducts and new target markets, sustainability, global strategy, etc.7. Future Outlook and ConclusionWhich of the two companies seem to be better positioned to: reducecosts, innovate into new products, gain revenue from new markets,capture customers from rivals, avoid costly litigation? That will be thedeciding factor.Additional Notes:While most of the research requires financial and economic data, the key is to be able touse the data, while considering other pertinent factors, to evaluate the present andfuture status of the company.You have been provided with a choice of companies, as well as the various economic facets of investigation. However, in light of today’s rapidly changing businessenvironment–which adds a touch of uncertainty into the future–there are other forcesat play that you might want to consider in your analysis briefly.Consider the impact of factors such as global business opportunities, new sources ofglobal competition, outsourcing, strategic alliances and mergers, new technologies thatimprove efficiencies in production, etc. You might want to take a look at MichaelPorter’s Five Forces Model and his competitive strategies, as well as a mini SWOTanalysis, to obtain a perspective on the company’s competitive situation.Examine important aspects of the company such as its “core competency” (look this up),its key revenue-generating product/service, its target customer group and itscharacteristics (income, lifestyle, age, location, etc.). What strategies does the companyhave in play to maintain sales and revenue and stay ahead of the competition? Who areits primary competitors? Is the company a leader or follower in its industry (what is theindustry to which it belongs?).As a prospective investor or advisor to one, looking at the company’s published financialreports is necessary. How has the stock been performing over the past year, five years,10 years? Try and take a look at the company’s “prospectus” (a document they send toinvestors); it gives you some clear insight on the company’s performance, its presentand future goals, and new initiatives/strategies as determined by its board ofdirectors. Review the important financial ratios that investors consider in evaluating theperformance of a corporation. Some of these are: price/earnings ratio, dividend yield,ROE (return on equity), profit margin, debt to equity ratio, inventory turnover ratio,current ratio.Make a convincing case to clearly recommend which company is a betterinvestment and why.~G~