MBA 5010 Week 1 Assignment (Rev 2) DENNIS AGYEMANG

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Webster University *

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5010

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Economics

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Feb 20, 2024

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Part A Question 1 - A parcel of vacant land located at the intersection of two streets used heavily by commuters Use 1: A gas station with a mini shoppette. Use 2: An apartment complex. The market process determine which resources will be allocated based on the demand of petrol or diesel. Likewise, the gas station combined with the accessibility of shopping for convenient items inside the shoppette helps to be a determining factor of the endeavor. Moreover, if there is a lack of gas stations with shoppette attached with the growing population of drivers and vehicles on the road, this parcel of vacant land will be best utilized by commuters and the community because of its prime location at the intersection of two streets. The market procedure specifies which resources are distributed based on the demand for newly constructed low-income or rent-controlled houses in this high-traffic city. When there are not sufficient low- income or rent-controlled apartment complexes adjacent, while an increasing population prefers to reside in the city without an increase in their pay due to the rising cost of living and inflation, this may be the most suitable utilization of the property as a result of the excellent location at the intersection of two streets making the apartment easily affordable to renters. Question 2 - A semi-tractor and trailer owned by a private trucker Use 1: Transportation of sand and stone. Use 2: Transportation of imported and exported goods from harbor. The market system determines which resources will be given for a semi-tractor and trailer operated by a private trucker to transport sand and stone, taking into consideration demand. When the main component of building materials is sand and stones, and there is a shortage of private sector drivers with semi-tractors and trailers for hire, this may be the most cost-effective, time-conscious, and sustainable way to use the vehicle and driver. The market structure stipulates which resources will be made available for the delivery of exported and imported goods from the harbor by a semi-tractor and trailer hauled by a private trucker. In an economy based on imports and exports, it is critical to preserve market stability by maintaining effective and timely porting times for the harbor, the supplier, and the customer. When commodities travel efficiently through the harbor to the consumer, the economy grows, making this the most efficient way to use a semi-tractor and trailer driven by a private trucker. Question 3 - A web-designer with particular expertise business web development Use 1: Web designer freelancer. Use 2: Responsive design layout for cross promotional web design linking donors and sponsors. The market framework outlines what resources will be made available to a web designer specializing in responsive design layout for cross promotional web design linking contributors and sponsors for local non-profits. In the above example, city government offers tax incentives

and grants to the web developer, sponsors, and donors in exchange for using the multifaceted website, which has been constructed to make community resources simple to use and completely supported. The market will allocate resources to the web designer for the development of the website. Question 4 - Fitness Fanatic is a startup fitness center located in Louisville Kentucky. Its innovative model of combining social networking, exclusive branded apparel, and an invitation-only fitness center has led to substantial revenue growth. Describe how Fitness Fanatic exemplifies the “opportunity seeking” dimension of value creation. Opportunity seeking is discovering, evaluating, and pursuing business opportunities. Fitness Fanatic successfully pursued opportunities because they have unveiled prospective options for unique products with its exclusive branded apparel, invitation-only fitness services, and social networking, qualifying them access to untapped markets. Fitness Fanatic has constructed and executed strategies for pursuing and capitalizing on these opportunities, assembling value for its startup fitness center and customers. By creating relationships with its target demographic and clients in locations where they already spend time online, Fitness Fanatic was able to leverage social media networking. Exclusive branded apparel by Fitness Fanatic is not only a cost-effective marketing strategy but also serves to retain loyal customers and give customers a sense of brand loyalty. Invitation-only fitness services increase the desirability of the fitness service by restricting access to invited people only and assembling an intention of experience and identity for the customer and the brand. Question 5 - Integrated Freight utilizes artificial intelligence to route freight across multiple carriers and modalities (e.g. train versus truck). The result is that Integrated Freight is able to reduce long distance freight costs by an average 20%. Describe how Integrated Freight exemplifies the “efficiency seeking” dimension of value creation. Integrated Freight assisted its organization in focusing fewer resources and time on business efficiency and techniques for improving it, allowing it to work much more smoothly. Integrated Freight efficiency examines how successfully a corporation can transform freight routes across numerous carriers and modes, labor, and capital into reduced long-distance expenses, hence saving income. By using artificial intelligence when routing its freight, Integrated Freight was able to improve process efficiency, operational efficiency, and labor productivity. Similarly, as a result of its efficiency-seeking conduct, Integrated Freight improved its environmental sustainability, energy consumption, and financial performance.

Part B What is meant by the "sharing economy": A sharing economy is a type of economic system where commodities and resources are shared cooperatively by individuals and groups, turning physical assets into services. The advancements in the sharing economy's growth have been made possible by big data and internet platforms (CFI, 2022). For instance, a person might own two cars but only utilize one, leaving the other idle. As a result, for $10 a week, this person can ask his friend to use this idle vehicle. The friend will use the idle car in this way for a fee. The sharing economy is critical to allowing viable communities and cities since its central concept fits nicely into the three fundamentals of sustainable cities: economy, environment, and society (Akande et al.,2020). How does the sharing economy better allocate underutilized resources? Over the last several years, the sharing economy has become a broad term for numerous online economic transactions, including business-to-business (B2B) exchanges (Mont et al.,2020). Co-working platforms provide shared open offices for freelancers, entrepreneurs, and work-from-home professionals in large metropolitan areas (Wright,2021). Peer-to-Peer Lending Platforms: Businesses that allow individuals to lend money to others at cheaper interest rates than traditional credit lending organizations. In this manner, physical assets are shared as services which allocates underutilized resources. Through sustainability, the sharing economy effectively allocates unused resources. The rapidly developing sharing economy has made sustainability a top priority. A hundred scooters sitting in a garage for a year do not get a fraction of the use (or monetary income) of a single scooter that firms like Bird provide, and ride-hailing is removing thousands of cars off the road while lowering emissions. It also offers benefits for businesses. A person may have multiple inactive computers if they purchase computers for their company based on growth forecasts that do not pan out. It makes much more

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sense to rent these computers as a person scale up; this strategy will ensure their projects are profitable, and will also significantly reduce the amount of e-waste that will later end up in landfills (Tabcum,2019). In so doing, how does it "create value"? In general, the sharing economy adds value by increasing access and accelerating the use of idle resources. It achieves it through two primary value-creation mechanisms: Intermediation via peer-to-peer networks Some efforts generate value by arranging decentralized transactions. These are typically sharing economy platforms (such as Airbnb) that connect peers via distributed, large-scale digital networks to arrange decentralized production, distribution, and exchange of items and services (Acquier et al.,2019). Centralized resource pooling Some projects add value by establishing and making available centralized resource pools. Centralized resource pooling is sometimes associated with "access-driven business models" or "product-service systems" in which for-profit corporations (such as Zipcar) build a centralized infrastructure that is available for short-term rental. Centralized resource pooling is also associated with efforts like Wikipedia, in which individual decentralized contributions are kept and pooled in a central pool (the Wikipedia website) that is freely accessible to users (Acquier et al.,2019).

REFERENCES Acquier, A., Carbone, V., & Massé, D. (2019, January 1). How to create value(s) in the sharing economy: Business models, scalability, and Sustainability . Technology Innovation Management Review. https://timreview.ca/article/1215 Author links open overlay panel Adeoluwa Akande a, adeoluwa, a, b, & AbstractThe purpose of this article is to evaluate the main drivers of the sharing economy through an exhaustive weighting and meta-analysis of previous relevant quantitative research articles. (2020, September 6). Understanding the sharing economy and its implication on sustainability in Smart Cities . Journal of Cleaner Production. https://www.sciencedirect.com/science/article/pii/S0959652620341226 Author links open overlay panel Oksana Mont a, a, b, & AbstractSharing economy platforms have been transforming production and consumption systems in cities around the world. While the sharing economy may contribute to addressing sustainability issues. (2020, May 20). A Decade of the Sharing Economy: Concepts, users, business and Governance Perspectives . Journal of Cleaner Production. https://www.sciencedirect.com/science/article/pii/S0959652620322629 Sharing economy . Corporate Finance Institute. (2023, May 10). https://corporatefinanceinstitute.com/resources/economics/sharing-economy/ Wright, B. (2021, May 30). We Work and the largest coworking companies in 2021 . Upsuite Coworking. https://www.upsuite.com/blog/the-largest-coworking-companies-wework-top- competitors/

MBA 5010 Week 1 Assignment (Rev 2) DENNIS AGYEMANG

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