Premium Essay

Bus 599 Slp

In:

Submitted By paperplane
Words 1083
Pages 5
Open Systems Theory
Introduction
Handheld Corporation is challenged by the costs of maintaining its three product lines, with difficult decisions specifically in the areas of defining product pricing strategies, allocation of R&D budgets, and the decision of whether to discontinue a product line or not. From an analysis of the financial performance and marketing data for each of the three PDA models that Handheld Corporation manufacturers, recommendations are presented within this paper as potential strategic options the company can take given the challenges they are facing today. This is an analysis that will not center on a given aspect of strategy yet will seek to find an integrative strategy based on the concepts of open systems theory (Negandhi, 1973) for Handheld to pursue that will seek to optimize their investment in new products and continually grow existing products performing well both from a financial and marketing standpoint.
Concerns over the X7 New Product Strategy
After analyzing the financial, market and product data from the Models X5, X6 and X7, the role of the latest product to be introduced, the X7 has been launched as a low-end product entry for the company. From an analysis of the financial and marketing data on the Model X7, it is clear that Handheld believed they could gain disproportionately higher sales with a low-end version of their PDAs. In effect, Handheld was attempting to capitalize on the elasticity curve of the market (Haley, Goldberg, 2008) and price a product on or below that curve, to achieve disproportionately higher sales. As is evidenced by an analysis of their financial and marketing data, the elasticity curve for PDAs in the price class of the X7 is flat and doesn’t seem to show any signs of elasticity within the $200 range.
The X7 product launch highlights a far more serious flaw in the approach to decision making

Similar Documents

Premium Essay

Bus 599 Integrative Slp Review Paper

...TUI UNIVERSITY Leon Garner BUS599 MBA Integrative Project, Module 3, SLP Dr. Jeffrey Snider April 23, 2016 Introduction Solar Power’s increasing popularity, driven by its ability to offer energy independence in combination with significant environmental benefits (Henderson, Conkling and Roberts, July 2007), has birthed a growth industry that has significant profit potential. The below pages analyze the impact of a simulated 18 year product pricing strategy, in combination with new market entrants, on Sun Power Company’s performance. Sun’s product price is lowered from $0.13/ kWh down to $0.08/ kWh over the simulated period and key performance metrics are analyzed and compared to those from SLP 2, which assumed the same pricing strategy but no new competitor entrants. Decision 1 – 2008-2012 Throughout the simulation period the objective of Sun Power is to expand its market share as well as maximize cumulative profit. Profit maximization is aided through cost reduction, thus the company seeks to lower its product unit cost. Figure 1 below, a horizontal analysis of pertinent income statement items, helps to analyze the results of the 5 year period ended in 2012. Sun Power attained improved profitability and cost positioning, although its cost position continues to lag against the cumulative performance of all other industry players over the same period. In addition, no new competitors have...

Words: 572 - Pages: 3

Premium Essay

Bus599 Slp1

...BUS 599 SLP 1 Simulation strategies assist in making management decisions since it's measurable and can be evaluated by carrying out production, pricing and marketing strategies. As an example in making decisions concerning the five products, simulation strategies can be implemented based on revenue accumulation and profit margins. The simulation strategy will mainly concentrate on revenue recognition which refers to an accounting principle that involves cash basis accounting and accrual basis accounting. Cash basis involves recognizing revenues when cash is received while accrual basis accounting recording revenues when cash is realized or earned. Products X3 X4 X5 X6 X7 Current revenue 774,307,366 362,007,649 363,450,944 48,848,773 42,987,651 Annual revenue 470,680,709 234,009,768 203,291,529 33,379,412 31,652,476 Revenue recognition involves several criteria's, the most notable ones include: · Evidence on the existing arrangement · After delivery or rendering of services · If the selling price is fixed and can not be determined · A reasonably assured collect ability Different revenue recognition methods assist in the management in ensuring smooth earnings and besides increase in investors trust. The methods also assist implementation of the matching concept, this is where by revenues are compared with the expenses. In addition, the revenue recognition methods are essential in easier maintenance of the financial statements. A good example is the profit...

Words: 426 - Pages: 2

Premium Essay

The Implementation of Nadler-Tushman Congruence Model to Assess an Organizations Output

...THE IMPLEMENTATION OF NADLER-TUSHMAN CONGRUENCE MODEL TO ASSESS AN ORGANIZATIONS OUTPUT CASE: OUTPUTS DIAGNOSIS, SLP: TIME WARP 3 TRIDENT UNIVERSITY INTERNATIONAL AVIE MARIE JOHNSTONE MBA INTEGRATIVE PROJECT BUS 599 MODULE 4 SESSION LONG PROJECT PROFESSOR JEFFREY ROALD SNIDER MAY 20, 2013 Abstract Continuing the work and analysis begun in the first three SLPs, we again project ourselves back in time to the year 2012. I am in responsible for decisions on product development and pricing for the next four years for our line of   tablets. I will show the score, financials and market data at the end of the four year period from my previous time discussions. Finally we can make a detailed discussion and   analysis of the data using   CVP analysis, and   will explain why I recommend specific pricing and research and development (R&D) costs for the next four year period. The Clipboard Tablet Company is...

Words: 1789 - Pages: 8

Premium Essay

Cma Guideline

...ensure, on the one hand, that all candidates master the skills necessary to practice the profession and, on the other hand, that everyone is treated equally. It is in this spirit that the moderators, correctors and staff of the Order make sure that they are respected. Note: Wherever there is a difference in interpretation, the French version of this Guide will prevail over the English version. o Happy reading! 2 2013-2014 Candidate’s Guide Table of contents Note to Readers Chapter 1 CMA Strategic Leadership Program (SLP) 1.1 1.2 SLP objectives and basics The SLP in steps 1.2.1 Phase 1 - Development 1.2.1.1 Learning activities 1.2.2 Case Examination 1.2.3 Phase 2 - Application 1.2.4 Report to the Board 1.2.5 Practical experience Evaluation methods for learning activities and national examinations 1.3.1 Evaluation of learning activities 1.3.2 Evaluation of the national examinations SLP management rules 1.4.1 Educational material and SLP Site 1.4.2 Attendance at interactive sessions 1.4.2.1 Lateness or absences of less than three hours 1.4.2.2 Absences of three hours or more 1.4.3 Group and team formation 1.4.4 Changing groups and teams Other useful information 1.5.1...

Words: 6775 - Pages: 28

Free Essay

Industrial Engineering

...McGraw-Hill Create™ Review Copy for Instructor Espinoza. Not for distribution. Course BBE 4505 Omar Espinoza University Of Minnesota NATURAL RESOURCES McGraw-Hill Create™ Review Copy for Instructor Espinoza. Not for distribution. http://create.mcgraw-hill.com Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw-Hill Create text may include materials submitted to McGraw-Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. Instructors retain copyright of these additional materials. ISBN-10: 1121789048 ISBN-13: 9781121789043 McGraw-Hill Create™ Review Copy for Instructor Espinoza. Not for distribution. Contents 1. Preface 1 2. Methods, Standards, and Work Design: Introduction 7 Problem-Solving Tools 27 3. Tex 29 4. Operation Analysis 79 5. Manual Work Design 133 6. Workplace, Equipment, and Tool Design 185 7. Work Environment Design 239 8. Design of Cognitive Work 281 9. Workplace and Systems Safety 327 10. Proposed Method Implementation 379 11. Time Study 413 12. Performance Rating and Allowances 447 13. Standard Data and Formulas 485 14. Predetermined Time Systems 507...

Words: 294686 - Pages: 1179

Free Essay

Dr Reddy's Annua; Report

...SU S AIN T ABI LI I M PA C T E EC ON OMIC S O CI A L & EN D R . R E D D Y ’ S L A B O R AT O R I E S L I M I T E D | A N N U A L R E P O R T | 2 0 0 9 – 1 0 RO VI V NM EN TA L • T Y • TI SI PO C R E AT I N G A C ONTENTS 24 MANAGEMENT DISCUSSION AND ANALYSIS 42 BOARD OF DIRECTORS 45 MANAGEMENT COUNCIL 72 DIRECTORS’ REPORT 2 CHAIRMAN’S LETTER 46 CORPORATE GOVERNANCE 89 IGAAP STANDALONE FINANCIALS 4 KEY HIGHLIGHTS 60 ADDITIONAL SHAREHOLDERS’ INFORMATION 70 FIVE YEARS AT A GLANCE 141 IGAAP CONSOLIDATED FINANCIALS 6 THE DNA OF SUSTAINABILITY 187 EXTRACT OF IFRS CONSOLIDATED FINANCIALS 190 STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 191 INFORMATION ON THE FINANCIALS OF SUBSIDIARY COMPANIES 192 NOTICE OF ANNUAL GENERAL MEETING 14 HUMAN RESOURCES 71 RATIO ANALYSIS 16 SAFETY, HEALTH AND ENVIRONMENT 18 CORPORATE SOCIAL RESPONSIBILITY 2 | S U S TA I N A B I L I T Y — C R E AT I N G A P O S I T I V E E C O N O M I C , S O C I A L A N D E N V I R O N M E N TA L I M PA C T CHAIRMAN’S LETTER 2009-10 has been a satisfactory year for your Company. Let me start with the financial results. Consolidated revenues for 2009-10 was Rs. 70,277 million. Excluding revenues from sumatriptan — your Company’s Authorized Generic version of Imitrex® which was launched in 2008-09 — revenue grew by 9%. In US dollar terms, 2009-10 revenue was US$ 1.56 billion. I am...

Words: 111729 - Pages: 447