Internal and external interactions

Spend 2 or 3 hours observing the organization in which you are employed. During the observation, identify internal and external interactions of the organization. You can talk to stakeholders who might have information relating to external interactions in order to gather necessary information. Some interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or downstream customers), or between internal divisions within your firm that can be described as a sequential or simultaneous game. Diagram the strategies, players, and compute pay offs as best you can. Compute the Nash equilibria. What can you do to change the rules of the game to your advantage? Compute the profit consequences of your advice. Two rival firms, ABC and XYZ are competing against each other. ABC’s goal is to maximize the profits ofthe current quarter. While XYZ has decided to pursue a strategy of maximizing this…

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