YOU ONLY NEED TO DO ACTION PLAN

Event: The DTI reports that the price of PC components are expected to fall by 5-8 percent over the next six months.

Scenario: You manage a small firm that manufactures PC's

TO DO:

Step 1: Look at the big picture (below)

Step 2: Organize an action plan (worry about details)

Big Picture: Impact of decline in component prices on PC market Price S of PC's po PI D Q Q1 Quantity of PC's