Our consulting firm has just landed the account of a new client. This client is a medium sized manufacturer that sells technological products domestically. The client wants our firm to help it develop a strategy to enter and be competitive in the international market. The first place you will have to start with this project is to get this client's management team to really understand the importance and meaning of the concept of Strategy. Therefore, you will need to explain to them the following in the Presentation. 1. The definition of Strategy; 2. Why Strategy is important; and 3. Recommend what type of Strategy would be best for this organization and why you choose this type of Strategy. Use only the material in the text from Chapter 6. The client wants you to create a short presentation on this topic. Assignment Directions (complete each step) Create a PowerPoint presentation of 5-7 subject slides not including title slide and the reference slide as part of the total slides.

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?