Question: A large video program and internet provider has seen a 10% annual rate of subscriber growth over the past three years. The growth rate has been spurred by a marketing department that typically has three or four marketing campaigns a year to drive new subscriptions. Over the past year subscriber uncollectables have grown 40% above the previous years. The executives of the company want to see at least double digit business growth for the company and have agreed to new marketing campaigns to promote new subscribers.

Problem: The reason for the high growth rate in uncollectable accounts is not clear. The growth in these accounts has caused the net earnings of the company to be lower than expected. What do you recommend that the company do to solve the uncollectable issue?

For the assigned problems make sure to develop a hypothesis statement and present logically associated business decision alternatives. Prepare not more than three slides presenting your statement of the problem/issue, hypothesis and potential business alternatives.

In addition, presenting your approach to addressing problems above use your training in economics and answer the following questions as a guide to your proposed actions.

a. Who is responsible for making the decision?

b. Does the decision maker have enough information to make a good decision? If not what information is required?

c. Do they have incentive to do so?

d. How would you go about determining the best course of action?