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Description of Current Market Conditions

Address the following topics in your analysis:

1. Introduction
a. Market structure
b. Impact of new companies entering the market
c. Prices
d. Technology -
e. Productivity (consider the law of diminishing marginal productivity) -
f. Cost structure
1) Wages and benefits
2) Fixed and variable costs
g. Price elasticity of demand
h. Competitors
i. Supply and demand analysis
j. Impact of government regulations
2. Conclusion


Solution Preview

There are two aspects that one has to take into account when talking about productivity and compensation of employees in any industry. One that it is instructional to compare what has happened over the years in the industry, and what has led to the changes that have occurred. I will include both here.

Refer to the attached Excel sheet (OutputEmployment) for the requisite data. As you can see there there is information on total output, employment and wages in the beverage sector. The output data is from BEA (I have attached the source file) and the employment and pay data is from BLS (various files).

The output data that you see is the total value of all output in millions of dollars. A point to note is that the first column specifies the NAICS code that is used for official classification of different industries. For more information on that refer to These codes provide information to compare different industries. The NAICS code for beverage manufacturing is 312100, and there are subheadings that classify different types of beverages. These are the codes that you see in the first column of the table. Adding the different subgroups gives you the total output in the beverage industry. That is given in row 7 of the table. 2008 data is still not out so that column has been left empty.

BLS only has employment and pay data starting in 2002, and hence our comparison ...

Solution Summary

Current Market Conditions are assessed.