Decisions for Quarter One and Quarterly Business Review

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"Growing Your Business" - A Management Simulation

Developing Project

Project 02

Available Project

Project 01

Project 03

No report from competitors

Status Summary

Status: No investing plan

MARKET EXPANSION We have come up with a way to extend the use of the reader to housekeeping, maintenance and dietary control in hospitals. This will involve a significant change to the interpreter, but it should increase the potential market for the readers by 50%.

This will be expensive. We will need to spend $35,000 per quarter for the next three quarters on this project. Any existing finished goods stock will have to be reworked at a cost of $25 per unit. The labor content will also go up by 10%. This will put a lot of strain on our supply chain. Make sure that we are considering these implications as we invest in this project.

We can crash the project and complete it in two quarters but this will cost $70,000 in each quarter. If we really want to beat the competition to market, we can do the project in one quarter, for a cost of $200,000. I think it's worth it. If we go ahead with this project and beat our competition, we will not only lead in this new segment of the market, but we should enjoy a beneficial "trickle down" effect on our share and value in the current market.

 R&D

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 Reginald Whimbush

Hisco    SWOT and STRATEGY  R&D Financial Statements  Supply Chain Mgt