Goodnight and Son Is a Small Business That, After Struggling

question 34

Essay

Goodnight and Son is a small business that, after struggling for a while, has taken off. Goodnight, Jr. has been attending various seminars to improve his business knowledge and has brought back several new ideas to see if they can be implemented in the company. One idea that he felt was very urgent to implement was for he and his father, and others in managerial positions, to sit down and develop a strategic plan and a budget process for the company. This had not been done when the company started so he would have to do some persuading to get the others accepting and involved. One other thing he had learned at one of his seminars was that something like this had to be accepted at the top before others would accept it.
Required:
What kinds of issues should Goodnight, Jr. bring up to get his idea accepted?

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Definitions:

Nash Equilibrium

A state in strategic interactions where each participant's chosen strategy leaves them with no incentive to deviate, given the choices of others.

Cournot Model

A economic model describing an industry structure in which companies compete on the quantity of output they decide to produce, assuming their rivals' decisions are fixed.

Bertrand Model

An economic model of competition among firms, where firms choose prices rather than quantities to compete.

Collude

The act of cooperating or conspiring, especially between competitors, to achieve a mutual benefit such as setting prices.