Substitutional new products, processes or technologies may force strategists to ‘bet the company’ on making the transition from old to new. What are the risks and how can they be reduced?
What will be an ideal response?What will be an ideal response?
The most obvious risks that arise when the prospect of major substitution becomes apparent are:
? Inadequate knowledge or resources to achieve the transition in good time or at all
? Committing to a transition that turns out to be misguided, so that is rejected by the market
? When new products substitute for existing ones without generating demand growth or fail to
generate adequate profits to recover substantial investment
? Loss of key personnel during or after the innovation has been introduced, weakening the
competitive position of the innovator.
You might also like to view...
Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days. You can remove the risk of loss due to a devaluation of the pound sterling by
a. selling sterling in the forward market for 60-day delivery. b. buying sterling now and selling it at the end of 60 days. c. selling the dollar equivalent in the forward market for 60-day delivery. d. keeping the sterling in Britain after it is delivered to you.
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units:Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.Units started and completed: 110,000.Units completed and transferred out: 135,000.Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. Costs:Costs in beginning Work in Process - Direct Materials: $43,000.Costs in beginning Work in Process - Conversion: $48,850.Costs incurred in February - Direct Materials: $287,000.Costs incurred in February - Conversion: $599,150. Calculate the cost per equivalent unit of materials.
A. $1.74 B. $2.00 C. $2.36 D. $2.61 E. $2.05
A ________ can be used to create positive word of mouth, help customers form a community, and develop long-term relationships between customers and the company.
A. full-page ad in selected newspapers B. corporate blog C. faxed newsletter D. Super Bowl ad E. public relations campaign
Buckyballs have been:
a. Recalled and will be required to be reissued with a new warning. b. Permanently recalled. c. Made safer through new sizes and shapes. d. Moved to off-shore production.