Introduction to Construction Business Management BUIL1026

ASSESSMENT 2

Case Study Report

Important Information

Graphs refers to Economic model(s).

Economic model(s) must be the ones covered in the course (except for kinked demand curve model). Refer to textbook and lecture slides.

NO real values for graphs/economic models are required. It is sufficient to use hypothetical values.

All submissions must be in WORD document. Please DO NOT submit in PDF form.

STRUCTURE

PART A - Due date: Monday 3 March 2025 (12noon)

• Introduction


• Analysis of firm


• Word limit: 1500

PART B - Due date: Friday 21 March 2025 (5pm)

• Discussion and Conclusion


• Executive summary


• Word limit: 1500

Part A: Introduction

Due date: Monday 3 March 2025 (12noon)

• Select a firm in the Construction industry or related to Construction industry in Australia (residential/commercial construction firm/building materials/services etc).

1. Mention the main objectives of this report.
   
   
   
   • Explain/describe what economic principles and main objectives that will be discussed in your case study (please clearly also state what is the MICROECONOMIC change that you will be discussing in the case study refer Part B for examples).
   
   
   
   

1. Introduce your chosen construction firm, including the type of product or
   
   
   
   • Provide brief description of the firm you chose
   
   
   • what product/service the firm offers (if the firm provides more than 1 service (example building both commercial and residential), be clear which one your case study will be based on)
   
   
   
   

Part A: Introduction

1. Identify the key competitors.
   
   
   
   • the number of competitors in the same industry are there lots of them or only few of them (give some examples of competitors)
   
   
   
   

1. Explain the reason(s) you chose this firm in relation to the

1. After reading your report, an overview of the key ideas the reader should understand.

Analysis of firm

1. Identify under which market structure does your firm operate in? For instance: perfect competition, monopolistic competition, oligopoly ? Justify this using the characteristics of the market.
   
   
   
   • Discuss the key characteristics as mentioned in the course (Refer Chapters 7 and 9 of
   
   
   
   

textbook)

• the number of competitors in the same industry are there lots of them or only few of them (give some examples of competitors)


• type of product that you have selected to discuss for the firm you have selected- is it

exactly the same or are there any differentiation etc to their competitors

• Any barriers to entry


• Any control on price


• any other characteristics that will support your answer

Analysis of firm

1. Explain and illustrate the profit maximising condition of this firm
   
   
   
   • Using Economic model(s), explain the profit maximizing condition for your selected firm
   
   
   
   

(refer to textbook to understand the profit maximizing concept. This concept applies to all market structures whereby firms will maximize profits at MR=MC. However, please be careful with the diagram, as it depends on which market structure your selected firm operates in)

NOTE: the diagram/graph should be what has been covered in the course

1. How will this firm determine the price? Do the competitors influence the pricing decision of this firm (relate to the market structure your firm operates under)?

Analysis of firm

Economic model/Diagram: Support with an appropriate economic model(s) for the firm based on your conclusion on which market structure (perfect competitive, monopolistically competitive or oligopoly) the firm will operate in.

Note:

• For perfectly competitive firm, (refer Chapter 7 of the textbook)

• For monopolistically competitive firm, (refer Chapter 9 of the textbook)

• In the case of oligopoly, (refer Week 6) (Explain the kinked demand curve model)

• Clearly label all the axis, curves, price, quantity, profit/loss area

Important to clearly describe the diagrams you have drawn.

Please note that diagrams should be where the discussion is (NOT in the appendix) NO real values required. It is sufficient to use hypothetical values for your model.

Analysis of firm

Please

• refer and watch video concepts Week 4-6;


• textbook Chapters 7 and 9;

Check Points before Submission

• Within the set word limit (+/- 10%).


• Check spelling and sentence


• In-text


• Referencing list

You need to provide references using UniSA referencing guidelines only. https://lo.unisa.edu.au/course/view.php?id=3839§ionid=555859

• Submissions should be in WORD doc format rather than PDF as it is easier for markers to insert

feedback/comments

Part B: Discussion and Conclusion

Due date: Friday 21 March 2025 (5pm)

Next, assume one change (microeconomic) in the market condition.

• For example:
  
  
  
  • the market entrance of a new competitor,
  
  
  • a competitor leaving the market,
  
  
  • lack of materials or goods for production,
  
  
  • the introduction of a major substitute product to the market by a rival/or your business,
  
  
  • introduce a new product from your business
  
  
  • any other change you can creatively think about as
  
  
  
  

Analyse and explain how this change will affect your firm's position in the market. How does the

change affect the profit-maximising level of output, price and profit/loss of the firm?

Part B: Discussion and Conclusion

• Select ONE change to discuss (this can be hypothetical change)


• Analyse how will the change affect the market and your Discuss the impact on
  
  
  
  • profit-maximising level of output,
  
  
  • price and
  
  
  • profit/loss of the firm
  
  
  • Clearly illustrate with an Economic model/diagram and explain this change on your firms
  
  
  
  

diagram.

Note: For oligopoly, for simplicity you can assume a downward sloping demand curve here. Important to clearly describe the diagrams you have drawn.

Please note that diagrams should be where the discussion is (NOT in the appendix)

NO real values required. It is sufficient to use hypothetical values for your model

Part B: Discussion and Conclusion

Conclusion:

• Should include all your findings from Part A and B

Executive Summary (300- 400 words)

• purpose (objectives) and context of the report


• type of analysis conducted (economic principles)


• important and significant findings, in summary form


• important and significant recommendations (if there are any)

Format for final submission

You MUST submit both Part A and Part B.

Remember to submit the Case Study as a whole (3000 words), inclusive of all previous sections.

• Title page: title of the report, your name and student number, due date, name of the tutor or

lecturer for whom the report was written, course code (not included in word count)

• Table of contents (not included in word count)


• Executive summary


• Introduction and Analysis of firm


• Discussion and Conclusion


• Reference list (not included in word count

Important Information

Graphs refers to Economic model(s).

Economic model(s) must be the ones covered in the course. Refer to textbook and lecture slides.

NO real values for graphs/economic models are required. It is sufficient to use hypothetical values.

All submissions must be in WORD document. Please DO NOT submit in PDF form.