Business Communication
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business-communication
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- Appendix I / 135
- CASE STUDY 7
Questions
1. Evaluate the formal planning process at Neeco Limited. 2. Critically examine the reactions of the various executives as stated in the case. 3. Discuss the importance of a three-year plan. (IGNOU, Dec, 2005) CASE STUDY 6 Office Needs, is a small chain of distributors of good-quality office furniture, carpets, safes and filing canets. Within each category, the company offers a wide variety of products with a great many variations of each product being offered. For instance, the company currently offers around 42 different designs of chairs and 23 varieties of office desks; the company keeps in touch with advances made in the office furniture field woodside and introduces those products which are in keeping with the needs of the market in terms of design. Workmanship, value for money and technical specifications. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Appendix I / 135 Office Needs trades only in quality furniture which is sturdily constructed. Differences between its products and cheaper, lower quality ones are well-known to those who have several years of experience in the business. An important feature, the company feels, is the availability of a complete list of components of the furniture system. This enables the customer to add bits and pieces of matching designs and colour in the future. Such components are available for sale separately. Systems are maintained in stock by the company for a number of years, and spare parts for chairs and other furniture are always available. The trade is currently witnessing a downtrend due to recession and players from local reorganised sector. Office needs has also experienced the same over the last two years. In addition, it had to trim the profit margins. Last year, it barely broke even and this year it is heading for a small loss for the first time in the company’s ten years history. Questions 1. Explain the term Product item, Product line and Product mix in the context of the above situation. 2. Advise the company in relation to its Product decisions and its effects on the company’s image. 3. What strategy would you recommend to counter competition from the unarranged sector? (IGNOU, Dec, 2006) CASE STUDY 7 Mr. Harish Jain, CEO of Energetic Enterprises, has established the firm for the manufacture and marketing of an innovative product. The firm earned a reputation of its product within two years of its inception and enjoyed monopoly position in the market for its product. Now it has a turnover of about Rs. 80 crores. Three years back, some firms entered the market and offered cheap substitutes which were of better quality. This year, Mr. Harish Jain is worried because about 40% of the market share has already been taken away by the new firms and he is not able to check this trend. Mr. Jain has been looking after both production and marketing functions though finance is being looked after by a finance manager having a professional degree in chartered accountancy. Mr. Jain has recently lowered the price of his product to fight competition, but even this has not helped. He has now approached you for advice to stabilise his sales volume. Questions 1. What is the orientation of Mr. Jain in selling his product? 2. What environmental factors have caused a worry to Mr. Jain? 3. As a consultant, what strategies will you suggest to check further tall in market share? (IGNOU, Dec, 2006) |
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