Game On: Managing a Business in a Mixed Economy

    The price of a product or service is the most influential factor in determining a consumer's desire or capability to purchase it. Demand for a product increases when the price is low, and the supply of a product increases when the price is high.. Therefore, in order for buyers and sellers to reach a compromise, the equilibrium price is determined. This is the financial value at which, the quantity demanded is equal to the quantity supplied. (Sayre & Morris, 2009, p.43).
    Much like the McDonald's Game, a mixed economy makes production decisions with the intention of making the highest profit, while abiding by government policies and social standards. Any successful company should realize that to maintain growth over an extended period of time, scarce resources must be managed efficiently. My experience with the McDonald's corporation showed me that by initially over using resources such as; money, pastures, soy production, beef, employees, and advertising, in the beginning of the game, is a recipe for bankruptcy. Consistently striving towards an increase in both supply and demand will further accumulate growth. Some strategies you can use to achieve this are; maintaining competitive and comparable pricing, creating innovative products, advances in operating technologies, adding advertising campaigns, increasing employment to accommodate demand, decreasing the price of production, developing a good reputation, ect.
     As I mentioned earlier, the most important factor in achieving success in this game is how you initially distribute your resources. Specifically, I began with 5 pastures and 1 soy field, to maintain a consistent level of supply. A decreased number of cows on each pasture allowed me to ensure efficient use of raw materials, avoiding over grazing. Adding hormones to the fodder allows for higher levels of production, while hiring one employee for the grill and one person at the register allows you minimize costs and accumulate a higher net profit. This model will allow you to build growth and assets over time and once you are established you can begin playing with other elements for continued development in your market.







References;

- Image retrieved from McDonald's Video Game

http://www.mcvideogame.com/game-eng.html

- Sayre, J.E. & Morris, A.J. (2009). Principles of Economics (6th ed.). Toronto, ON: McGraw- Hill Ryerson