ECO 561 Final Business Proposal

ECO 561 Final Business Proposal






Johnson Honey Farm Final Business Proposal

ECO/561
March 25, 2015
Mohamed Ismail El-Kaissy
Johnson Honey Farm Final Business Proposal
Johnson Honey Farm business began in 1993. The business owner “has over 400 hives in 20 locations to produce the wildflower and basswood honey. The location of the business is in the heartland of the upper Midwest, just outside historic Guttenberg, Iowa and on the west bank of the mighty Mississippi River. The company offers pure and comb honey in a variety of sizes and the business’ specialty of 18 flavors of creamed honey” (Johnson, n.d., home). The product that one has chosen to develop is a chocolate flavored creamed honey. This business is a home-based business, which includes product manufacturing, marketing, and web-based promotion. This business proposal will outline the microeconomic and macroeconomic considerations one must take into account with the entry of chocolate flavored creamed honey into the current market.
Market Structure
Johnson Honey Farm’s market structure is a monopolistic competition in the area they are located. According to McConnell, Brue, and Flynn (2009) characteristics of monopolistic competition are as follows:
(1) A relatively high number of sellers
(2) Differentiated products
(3) Easy entry to and exit from, the industry (pg. 223).
There are ten apiaries in a 100-mile radius of the Johnson Honey Farm. The apiaries differentiate themselves by the type of pollen the bee use to make the honey, for example, clover, basswood, or wildflower. Other ways that Johnson Honey Farm differentiates themselves from other apiaries is offering combed honey and flavored creamed honey. The location of the honey farm is another differentiation. For example, individuals who live in the towns of Guttenberg, Elkader, Clayton, Postville, and Luxemburg, Iowa prefer to do business with Johnson Honey Farm because of location convenience, quality of product, and service (William H Johnson,...

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