Price elasticity is helpful to a business or organization as it helps managers to price their products appropriately. However, a business needs to use price elasticity effectively to group their products to either elastic or inelastic demand. The identification and grouping of products help the business in that the manager can be aware of the products that are more receptive to price change than others. Relying on costs can bring more harm to a business; therefore, considering elasticity is crucial in making pricing decisions.

            When a business uses elasticity, it is easier for them to identify and distinguish a demand curve. A demand curve in economics is a tool used to determine the correlation between customer’s demand and increase in product prices. Knowing the demand curve means that a company expects profit that is close to what it would earn with the knowledge of the demand curve (Cohen et al., 2020). Using the identified demand curve, the organization can know the rate at which customers will purchase products at a given pricing range. Principles and formulas used in elasticity also help an organization in goal setting and achieving the set goals. For instance, elasticity can help an organization determine the effect of changing the price of product y by a particular range. Moreover, the principles and formulas can help an organization determine the amount required to be reduced for the sales to increase by a certain amount targeted. It is easier to know how increasing prices and vice versa have on revenue increase or decrease through elasticity demand.

            The textbook shows that focusing more on evaluating costs before making decisions can be confusing. The various costs that include fixed, avoidable, variable, and opportunity costs can make a business fail to optimize revenue if demand is not accounted for in the equation (Cohen et al., 2020). Failing to focus on demand can make an organization price their products either too high or too low, which is inadequate pricing.

Advanced Marketing

            PEST analysis is a strategic tool that has shown significant importance in business fields. The analysis’ primary objective is to identify the political, economic, socio-cultural, and technological factors in the organization’s environment (Cox, 2021). I believe that companies or organizations that use planning tools such as PEST have a higher probability of performing better than competitors who do not use such planning tools.

            Through PEST analysis, it is easier for companies to distinguish the impact that environmental factors have on the performance and thriving of the company in the long run. The analysis helps a company identify external forces and look at them from a more significant point of view such that the company benefits from the forces.  Environmental factors require proactive action and planning for them to bring positive impacts to the company (Cox, 2021). The analysis helps evaluate such factors in that the opportunity for company growth is achieved while reducing risks that the factors might expose to the company.

            In terms of the market and competitors, the analysis helps a company stay ahead of the competitors. This is because the company studies the factors that might affect the business and formulates strategies that help deal with the factors appropriately. Additionally, the company is also aware that it must focus on understanding the importance of the analysis tool to accomplish improvement. The analysis is also essential in helping a company make appropriate decisions concerning service and products (Cox, 2021). Understanding the PEST analysis helps a company understand the societal needs of consumers and thus provide products that are in line with the consumer needs. Some companies can also use political influence in marketing their products and expanding their business.

Ethical Standards

            According to my perspective, public administration workers should not lie to the public regardless of the situation. By lying, means that some of the ethical standards in the public administration field will be violated. Ethical standards are the set of principles that promote the ethical code of business in an organization and influence the decisions and behavior in a company (Androniceanu, 2021). Such ethical standards include honesty, respect and integrity, and reliability.

            Ethical standards have to be acceptable conduct in a business. In this case, lying is unacceptable and unethical. Human is to err, which makes lying a common act completed by human beings (Androniceanu, 2021). Lying has negative impacts as it makes one have a twisted perspective on the real world. From a public administrative perspective, lying can lead to an individual making wrong or inappropriate choices driven by false data.

            Lying also tampers with straightforwardness. Through straightforwardness, the residents are assured of accessibility to valid data, which is considered public. The public administration has the objective of serving residents, and thus lying to them would violate ethical standards of honesty and reliability. Failing to achieve straightforwardness due to lying can break the connection of transparency between the public administration and the people intended to be served. Public administrators should show trustworthiness so that the public may appreciate their work and be termed as reliable. When public administrators fail to observe laws, the ethical standards in government are demonstrated.

References

ANDRONICEANU, A. (2021). Transparency in public administration as a challenge for a good democratic governance. ADMINISTRATIE SI MANAGEMENT PUBLIC, (36), 149-164. https://doi.org/10.24818/amp/2021.36-09

Cohen, M., Perakis, G., & Pindyck, R. (2020). A Simple Rule for Pricing with Limited Knowledge of Demand. Management Science, 67(3), 1608-1621. https://doi.org/10.1287/mnsc.2020.3602

Cox, J. (2021). The higher education environment driving academic library strategy: A political, economic, social and technological (PEST) analysis. The Journal Of Academic Librarianship, 47(1), 102219. https://doi.org/10.1016/j.acalib.2020.102219