MBA6900 Capella Milestone 3 Dellags Company Life Cycle Paper

User Generated

25uef

Writing

MBA6900

Capella University

Description

Submit your discussion of the life cycle management (Section III) of your business product, service, or other idea from your business plan in the Marketing and Strategy course.

For additional details, please refer to the Milestone Three Guidelines and Rubric document.

Unformatted Attachment Preview

MBA 690 Milestone Three Guidelines and Rubric In Milestone Three, you will submit your discussion of the life cycle management (Section III) of your business product, service, or other idea from your business plan in the Marketing and Strategy course. Prompt: In this milestone, consider the sustainability of your idea in the marketplace from initial inventory to subsequent sustainment in the supply chain. Specifically, examine the company’s own inventory as a starting point—that inventory came from a supplier—which is where your supply chain starts. Additionally, your finished product will travel downstream along the supply chain by means of shippers, distribution centers and then finally, to a retailer. These components should be outlined in this paper. Identify and describe the technologies you intend to use along the company’s supply chain such as RFID tagging and bar coding, e-procurement, and 3PL. Identify and justify your clicks or bricks decision, that is, your rationale for brick-and-mortar locations or internet services or a combination of both. The paper should identify the key data needed to support the functions of inventory management and supply chain management. You should describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual decline. Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your assessment should be supported with rationale. Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit streams. Ensure that you justify the steps in your plan. Specifically, the following critical elements must be addressed: III. Life Cycle: In this section, you will discuss the life cycle of your business product, service, or other idea from your business plan in the Marketing and Strategy course. Specifically, you should: a) Describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual decline. b) Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your assessment should be supported with rationale. c) Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit streams. Ensure that you justify the steps in your plan. Rubric Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source) document, 8-10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a minimum of two references cited in APA format. Critical Elements Life Cycle Proficient (100%) Clearly describes life cycle of business idea, focusing on future growth and decline Profit Generation Comprehensively assesses profit generation and cost-saving opportunities associated with business idea based on life cycle and supported with rationale Determines appropriate phase-out plan for business idea that ensures sustainable solution for future innovation and profit streams Phase-Out Plan Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Needs Improvement (75%) Describes life cycle of business idea, but without a focus on future growth and decline or with gaps in clarity or detail Assesses profit generation and costsaving opportunities associated with business idea, but response is not based on life cycle or has gaps in accuracy, detail, or support Determines phase-out plan for business idea, but plan is not appropriate for ensuring sustainable solution for future innovation and profit streams Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Not Evident (0%) Does not describe life cycle of business idea Value 30 Does not assess profit generation and cost-saving opportunities associated with business idea 30 Does not determine phase-out plan for business idea 30 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 10 100% Running head: FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Final Project: All-in-One Laptop and Printer 1 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Contents Executive Summary ...................................................................................................................................... 4 Introduction ................................................................................................................................................... 5 Branding and Idea Context ........................................................................................................................... 5 Alignment of Product to Corporate Mission ............................................................................................. 6 Defining features of the all-in-one laptop and printer............................................................................... 7 Context: Effectiveness of Branding Efforts .............................................................................................. 7 Need for the Multi-function All-in-one Laptop and Printer.......................................................................... 8 Target Market............................................................................................................................................ 8 Behavioral and Lifestyle Demographics of the Target Consumer ............................................................ 8 Target Market: Others ............................................................................................................................... 9 Market Need for the Product..................................................................................................................... 9 Need: Why? .............................................................................................................................................. 9 SWOT Analysis .......................................................................................................................................... 10 Strengths ................................................................................................................................................. 10 Financial Strength ............................................................................................................................... 10 Wide Range of Product and Services .................................................................................................. 11 Highly Skilled Workforce ................................................................................................................... 11 Huge Research and Development Budgets ......................................................................................... 11 New Range of Premium Product ........................................................................................................ 12 Weaknesses ............................................................................................................................................. 12 Declining Profits ................................................................................................................................. 12 High Dependence on the US Markets ................................................................................................. 12 Dependence on the PC Segment ......................................................................................................... 13 Rigid Organizational Structure ........................................................................................................... 13 Effects of Strengths and Weaknesses on Branding and Operations........................................................ 13 Opportunities........................................................................................................................................... 14 Consumer Trends .................................................................................................................................... 14 Threats .................................................................................................................................................... 16 2 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Political and Legal Regulations .......................................................................................................... 16 Competitive Pressure .......................................................................................................................... 16 Increasing Material and Labor Costs .................................................................................................. 17 Imitation and Counterfeiting of Products............................................................................................ 17 Ethical Issues Affecting Business ........................................................................................................... 17 Core Competencies ..................................................................................................................................... 18 Company’s use of Technology ............................................................................................................... 18 Human Resource Practices ..................................................................................................................... 18 Brand Image ............................................................................................................................................ 19 Pricing ......................................................................................................................................................... 19 Fixed and Variable Costs ........................................................................................................................ 19 Competitor Pricing .................................................................................................................................. 21 The most Appropriate Price for the Target Market ................................................................................. 22 Pricing Strategy....................................................................................................................................... 22 Refinement .................................................................................................................................................. 23 Success on New Product and Branding .................................................................................................. 27 Success Factors for New Product development ...................................................................................... 28 Feedback Loops ...................................................................................................................................... 30 Other Factors........................................................................................................................................... 32 3 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Project Milestone One: All-in-one Laptop and Printer Executive Summary Dellags is known for the production of high-quality printing and personal computing services. The company's ability to research and move with the advancement in technology has been a significant factor for its profitability and market share in the highly competitive industry (Aydalot & Keeble, 2018). The company seeks to create a first-of-its-kind device that combines the functions of a computer and printer for ease in portability and convenience for the ultimate consumer (Link, 2013). It is critical that the firm established a functional printer and computer associated with ease in portability, appearing in the form of a laptop and allowing for multifunctional capabilities such as printing, scanning, and computing (Chareonwongsak, 2002). A strategic analysis of the company shows various capabilities and limitations in the achievement of organizational goals. The strengths show the benefits the company could apply in its operations to achieve corporate objectives while weaknesses indicate those factors within the operating environment that could hinder firm performance. The paper then analyzes the effect of the company’s strengths and weaknesses on its branding and operations. An analysis of the company’s opportunities and threat offers excellent insights to the firm on the available opportunities in the market as well as pitfalls in the external environment that could likely impact the firm’s operations. The evaluation of the company’s core competencies supports the firm’s application of the available resources for growth, development, and profitability. The dashboard gives an analysis of the steps necessary for launching the all-in-one laptop and printer in the market as well as the necessary activities and metrics necessary for evaluating product success. The success of product branding as well as its launch in the market is dependent on multiple factors such as the ability of the product to meet consumer needs, the motivation of the sales 4 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER team, and the appropriateness of the distribution system. The feedback loop is a critical concept in evaluating the success of the product in the market. It allows for the assessment of the product, its acceptance and the feedback of the customers regarding the product. Introduction Dellags Company is a firm within the information technology industry known for the provision of personal computing services, other access devices, printing and imaging products as well as the related technologies, services, and solutions. The company operates through the personal systems segment, printing, and corporate investment sectors. The company has been known in the industry due to its capabilities and competencies in the design and manufacture of printers and computers (Vincent, 2008). The expansion strategies and profitability of the company are based on its ability to produce unique products that adequately meet the changing needs of consumers in the information technology industry. Dellags invests in innovation and creativity through an allocation of sufficient research and development budget to allow for a thorough analysis of the market to evaluate consumer needs and the consequent development of products that adequately meet those needs. The project covers the need for and stages for the introduction of an all-in-one laptop and printer equipment that ensures ease in preparation and printing of documents even on the move and in cases where access to independent printers is not possible. Branding and Idea Context Dellags is a popular company in the production of personal and commercial computers as well as software for running these devices. The company has been known for the production of notebooks, desktops, consumer services, and detachable. The design and manufacture of both 5 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER personal and commercial computers as well as its capability, competency and the availability of resources in the area informs the company’s current move being the leader in the design and manufacture of an all-in-one computer fitted with printing and scanning functionalities (Malone, 2007). Additionally, the company has been well known for the use of the latest technologies in the design, manufacture, and distribution of its printers in the market. The company’s printing segment has focused on the use of the latest technologies associated with the provision of imaging solutions for commercial markets. The company has always concentrated in the design and development of A3 products and solutions for the multifunction printer market and the copier, printer security solutions as well as multifunctional intelligent products in the printing category. Alignment of Product to Corporate Mission It is worth noting that Dellags has been a critical player in both the printing and computer accessories services. The firm' expertise in the two sectors of the industry is critical in informing the design, manufacture, and distribution of the current product in the market. The new product seeks to align with the company's vision statement that emphasizes the firm's commitment of viewing the market as an opportunity for growth as well as the use of the firm’s profits in the development and production of innovative products, solutions, and services to satisfy the emerging consumer needs. Change in technology as well as the globalization of businesses has allowed for an increase in business travels and consequently created the need for computing, printing and scanning services anywhere at any time. The new product to be established by the company requires extensive research and innovation to ensure the company's adherence to its mission 6 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER statement of the provision of solutions, products, and services of the highest quality and thus delivering more value to consumers order to earn the customer respect and loyalty. Defining features of the all-in-one laptop and printer The all-in-one computer and printer fits into the company’s commitment to the provision of products, services, and solutions across the information technology fields and in meeting the emerging needs of consumers. The changing technology has been one of the significant factors affecting operation in the industry, and the firm has been committed to research, development, and innovation in the identification of consumer needs as well as the design and manufacture of products that adequately meet those needs. Dellags has earned a brand reputation in the design, manufacture, and distribution of printers and computers. The new product takes into account the two favorite segments of the company in the design and production of a unique device that considers the specifications of the two subsectors. Context: Effectiveness of Branding Efforts The unique brand will be advertised within and outside the company following various promotional methods. The combination of the multiple functionalities of the device is a critical selling point for the product since consumers can now scan, and print documents while doing various computing tasks that could otherwise be impossible where the printing and computing functionalities are not combined. The availability of the firm's stores in multiple locations globally would aid in the promotion and advertising to create awareness of the new product across the target market. Within the stores, the sales staff will be responsible for providing information about the product to interested consumers as well as the specifications and a demonstration on the use of the product. 7 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Additionally, the company will put various adverts in newspapers and information technology magazines to create awareness and boost the sales of the products globally. The existing company branding of its products in the market is critical for acceptance and purchase of the new device in the market. Dellags’s products have been well known regarding its quality and effectiveness in meeting consumer needs and demands in the market. As such, the new product is designed to meet the merits of the established brand and further promote the firm's capabilities globally. Need for the Multi-function All-in-one Laptop and Printer Target Market The multi-function All-in-one laptop and printer are targeted at the business class individuals who carry out their businesses across global markets with the need to remain updated and well informed of the operations in the company. These individuals are often in the move and are always in need of updating various business records. While they have faced multiple inconveniences in the past, having to postpone such operations until they can access printers and scanners in offices, the all-in-one laptop and printer device is designed to meet their computing, printing and scanning needs even during their travels. Behavioral and Lifestyle Demographics of the Target Consumer The current generation of business people is composed of middle-aged individuals with a passion for business with most of them working remotely or across various geographic regions. These individuals seek convenience and orderliness in their operations hence the need for the device that adequately meets those needs (Kandampully, 2002). The purchasing power of individuals in the target market is designed for the acquisition of machines, tools, and services 8 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER that makes their lives easier. This category of individuals is willing to spend on devices and products that meet their needs and thus ensure efficiency and effectiveness in their operations. Target Market: Others Other features of the target market that could affect the purchase and use of the All-inone laptop and printer include the passion for advanced devices in information technology. The market is continuously motivated towards the acquisition of products designed and manufactured using the latest information technology designs and standards. The consumers are characterized by the continuous need for purchase of the newest technology products, services, and solutions. Market Need for the Product The all-in-one laptop and printer meets the market needs of clients who deal in the production of business documents while on the move. Advances in technology have increased the number of individuals who carry out businesses at their convenience such as within their homes, in shared spaces and even during travel. Such users may not have access to shared printers and scanners as characterized by traditional office settings hence the All-in-one laptop and printer has been designed in a manner to meet these needs. Even when consumers have access to printers and scanners, there have been cases where documents have been required urgently during business travels and meeting; hence the device is critical in meeting such needs. Need: Why? The choice of the target market for the all-in-one laptop and printer is based on the needs of this group of individuals, their purchasing power as well as their ability to carry out their businesses while on their move. Additionally, they are chosen as a result of their passion for technology equipment that adequately meet their various needs and promote convenience and 9 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER orderliness in their lives. There is a need for Dellags Company to customize their products to meet the changing needs of consumers in the industry. SWOT Analysis SWOT Analysis is a strategic tool used in the evaluation of the internal and external operating environment of a firm. The analysis is critical for the assessment of the strengths and weaknesses faced by Dellags Company in its day to day operations. The two components are factors to the internal operating environment of the firm and are measures that can be controlled by the company for an overall improvement in performance and efficiency in operations. The threats and opportunities, on the other hand, are factors within the external operating environment of the company. These factors present opportunities for business expansion and efficiency in operations and also bring about the need for due diligence and research to mitigate and control the firm’s exposure to the threats in its operating environment. Strengths Dylllags Company is associated with various factors that are critical in ensuring efficiency in operations as well as the ability of the firm to attain and maintain profitability and competitive edge in the market. Financial Strength The company is well established financially. The company is ranked among the leading companies in the market, an indication of its capability to run its operations in the market smoothly. The financial strengths of the firm are critical in its investment in research and development vital to the establishment of innovative designs and products in its portfolio. The research and development budget in the firm is critical in the model of an innovative all-in-one 10 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER laptop and printer that could meet all the computing, scanning and printing needs of consumers anytime, anywhere. Wide Range of Product and Services The company deals in the provision of a wide variety of technologies, software, products, and services to consumers to meet their day to day computing and printing needs. The company designs and manufactures personal computers, laptops, and printers as well as the provision of software and business solutions to customers. The company, therefore, can cater for a wide range of needs for its customers including both individuals and large scale business solutions including the government. The company’s presence is also felt in the tablet and smartphone market. The growth of the brand in the market has been based on the provision of a wide range of products and services in the market as well as excellent quality for these products and services. Highly Skilled Workforce Dellags Company boasts of a highly skilled workforce. The company has invested in the training and development of its human resources to ensure productivity and efficiency of operations in all the segments of the company. The human resource policy and compensation plan of the firm encourage innovation and creativity in the design and manufacture of products to meet the established consumer needs in the market. Huge Research and Development Budgets Dellags Company sets aside huge budgets for its research and development unit. The company believes in the need for product customization to adequately meet the needs of the consumers. As such the company carries out regular market research and consequently engages 11 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER its design and engineering team in the production of the best quality unique products to meet the established consumer needs. New Range of Premium Product Dellags Company boasts of the introduction of a new range of premium products in the market. The new products are uniquely designed and produced to meet the needs of the premium category of the firm’s consumers. The production of the all-in-one laptop and printer will add into the existing group of such products in the market and continually boost the brand reputation and popularity of the company in the technological and information system industries (Bayus, Erickson, & Jacobson, 2003). Weaknesses Declining Profits Dellags Company has been associated with declining profit in the past few years as a result of the increasing competition in the personal computers and printer-manufacturing segments. The rising commodity costs, as well as unfavorable foreign currency impacts, continued affecting the decline in the firm's net profits over the past few years. The continuous dependence of the company on the PC market which has been facing fluctuations also contributed significantly to the decline in the company’s gross profit margins. High Dependence on the US Markets The U.S market has been the primary revenue generating segment for Dellags Company since the company's inception and operations in the market. The economic fluctuations in the United States have exposed the company to decline in activities as a result of lower sales and 12 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER reduced revenue for the firm. Overdependence on particular market segments exposes the firm to the risks of losses in cases of poor performance in such markets. Dependence on the PC Segment The company has always depended on the personal computer segments for generating a significant part of its revenue. The increasing competition in the PC segment has significantly affected the operations of the company, and there is a need for the firm to expand its services into other more profitable and less competitive segments. Rigid Organizational Structure The current organizational structure of the company is compatible with the current business model. Despite the decline in revenue and increasing competition in these segments, Dellags Company finds it hard to expand its operations to other profitable business segments as a result of the rigid structure. It is critical that the company reorganizes its structure to accommodate such changes for the overall good of the firm. Effects of Strengths and Weaknesses on Branding and Operations Strengths and weaknesses of Dellags Company affect operations and functional departments in a variety of ways. The financial power of the company is crucial to the effectiveness in the design and manufacture of the all-in-one laptop and printer as well as the markets in, sales and research and development units of the firm. The availability of finances supports effectiveness in the operations of these departments. The wide range of products and services, as well as the investment in the premium category of services, is a critical factor in the firm’s ability to achieve objectives as well as meet the customer needs in the market. The company’s highly competent workforce is a crucial concept for the achievement of 13 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER organizational goals and objectives through effectiveness and efficiency in operations. The substantive budget to the research and development units of the company is critical for adequate market research and the customization of services to meet consumer needs. The declining profits recorded by the company are likely to impact the operations of the company as a result of the unavailability of adequate resources to meet the daily activities. Overdependence on the PC industry is a threat to the continuity of the operations of the company in case of a crash and declining performance in the specific sectors or markets of the industry. Rigid organizational structures cause bureaucracies and lack of flexibility in decision-making in the firm. The business plan takes into consideration these factors and their effect on the overall performance of the company. Consequently, the business plan takes advantage of the strengths exhibited by the company to limit the weaknesses for an increase in the overall performance of Dellags Company in the market. Opportunities Consumer Trends Innovation and creativity in product design and manufacture present an opportunity for the Company in the laptop, PC and printer segments. The changes in people's preferences, tastes and needs call for innovative designs to meet these changing consumer needs. The company should, therefore, focus on product innovation to match their current practices with the changing needs and preferences of consumers in the market (Dutta, Geiger, & Lanvin, 2015). It is worth noting that people are continuously in need of lighter, more efficient and highly portable products in the market. 14 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Additionally, the increased mobility characterizing the business individual calls for innovative products to meet these changing needs. This is where the all-in-one laptop and printer comes in. The product is designed to meet the needs of the business category of individuals who are more often traveling and would like to ensure the continuity of their business operations while on the move. The advancement in technology presents an opportunity for the company to create awareness for its product in the market and consequently generate more sales revenue. The growth of digital technology has created new opportunities for brands in the market to increase their customer bases. Digital marketing offers an opportunity for Dellags Company to engage its customers through digital channels and utilizing new improved customer engagement and marketing practices. The digital marketing platforms also support the company's need for the creation of better customer experiences and engagement for a broader customer base as well as loyal and satisfied customers. The current trends in supply chain management practices offer an opportunity for the company to reduce distribution costs and create better relationships with customers and suppliers. It is critical that firms adequately manage their supply chain strategy to remain competitive in the highly competitive environment brought about by advances in technology (Vendrell-Herrero et al., 2017). Efficient management of the company’s supply chain is critical in the creation of competitive advantage in the dynamic information technology industry. The rise in online shopping and retailing presents an opportunity for Dellags Company to continuously develop its online platform to reach out to an increased number of consumers globally. The company should, therefore, build its e-commerce platform and ensure the availability of product information to an increased population globally. 15 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Threats Political and Legal Regulations Legal and political regulations significantly affect the performance of the brand in the market. Technology industries globally are facing legal control and government oversights. Noncompliance to the established legal and political frameworks could significantly affect the operations of the firm through fines as well as other legal actions. The legal pressure also exerts the need for compliance and increase the overall operational costs of the firm. It is critical that Dellags Company studies the markets within which it carries operations to ensure compliance with the established legal and political frameworks. The company should adhere to all these regulation within the different segments and functional areas of the firm. Competitive Pressure There are ever–increasing competitive pressures in the PC, Laptop and printing segments of the information technology industry. The number of players in the sector is numerous and well established in the market. These companies are also aggressive about growth in the market hence the increasing competition in the market (D'aveni, 2010). Additionally, the changing technology requires that brands continuously invests in technology for faster growth and competitive advantage in the market. The increasing pressure on increased market share for firms such as HP, Dell, and Acer among others puts pressure on Dellags to invest in research and development for product differentiation and to gain an increased share of the market. The threat has led to the need for the company to spend more resources on research and development and product innovation. The company also needs to engage customers using various customer engagement techniques to remain relevant in the market. 16 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Increasing Material and Labor Costs The operational costs in the PC and printer manufacturing segments have increased significantly over time. While firms have tried mitigating these threats through the establishment of better supply chain strategies, the costs are continuously on the rise. This exposes the firm to reduced profitability in the market (Heshmati, 2003). Imitation and Counterfeiting of Products The information technology industry is associated with the rise in the number of copying and counterfeit products (Trott & Hoecht, 2007). Dellags Company is not left out of this scam. The company faces the threat of product and technology counterfeiting in the market hence reducing the impact of the innovative and creative technologies established by the firm. Ethical Issues Affecting Business Dellags Company should be committed to ethical practices in its business operations. Violations of the ethical guidelines adversely affect the ability of the company to launch its new product in the market as well as running the already established brand image. Various ethical concerns have been raised in the information technology industry. Such ethical considerations revolve around the strict adherence to the code of ethics developed for the sector, adherence to the acceptable use policies, and respect to intellectual property rights as well as copyrights. It is critical that the management of Dellags strictly observes these guidelines in the design, manufacture, and distribution of its all-in-one laptop and printer. Failure by the company to strictly adhere to these business ethics while carrying out its business could adversely affect the brand reputation and consequently the profitability of the company in the market. The violation of the intellectual property and copyright frameworks 17 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER could expose the company to legal suits which are associated with higher operational costs as well as suspension of licenses to operate in various segments of the market (Martin, 2015). In a competitive environment where other firms continuously seek to gain competitive advantage and gain leadership in the industry, violation of the ethical frameworks could expose the firm to reduced customer loyalty and trust hence exposing it to a decline in the overall profitability. Core Competencies Dellags Company has remained competitive in the information technology industry as a result of its core competencies that are unique to the company and are difficult to imitate. Company’s use of Technology The company has been committed to innovative and creative technologies in the design and manufacture of its products right from the inception of the firm. The company invests a significant amount of budgets annually for innovation and research to become the leading firm in the design and manufacture of products that adequately meet the changing needs of consumers in the market (Byrd, 2002). One such innovation is the all-in-one laptop and printer which is the first of its kind in the market. It is almost impossible for other firms in the industry to imitate this competency due to the vast need for resources to attain such levels of creativity and innovation. Human Resource Practices Dellags Company boasts of the most-established human resource practices in the information technology industry. The company has put in place the best compensation practice to attract the most competent talent in the market. The company also puts in position employee development and training programs to empower its workforce to remain creative, independent and work collectively for the achievement of organizational goals. The company encourages 18 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER both team and individual work and urges employees to work together while ensuring their independence in putting across their ideas. As such, the employees of the company are well empowered to handle any tricky and complex tasks such as the design and manufacture of the all-in-one laptop and printer. Employee engagement and compensation is critical for the company to ensure increased innovative and creative spirit among the workforce (Kandampully, 2002). Brand Image Dellags Company has maintained a strong brand image through the provision of highquality products in the PC, Laptop and printer segments. The company has, therefore, gained an expansive customer base with a total trust on the firm’s products. This has been achieved through the firm’s focus on innovative technology as well as research and development. This competency will support the move by the company to introduce the new product in the market since many people are already aware of the firm’s reputation and brand. There are increased chances that the market will be passionate to acquire the new product based on the existing brand image. Pricing Fixed and Variable Costs The pricing for the all-in-one laptop and printer depends on the variable and fixed costs incurred in the design and manufacture of the device. Fixed costs refer to those expenses that remain constant despite the level of production or the unit’s manufactured. Such costs include rent, cost of equipment and machinery categorized in the property plant and equipment among other expenses that have to be paid even if the level of production is at zero. Variable costs, on the other hand, refers to the costs incurred in the creation of the all-in-one laptop and printer that 19 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER can be attributed directly to the manufacturing process ad which varies with the increase in the number of units produced (Shepherd, 2015). Dellags has been in the business of manufacturing computers as well as printers for several decades. The company can initiate the production of the all-in-one laptop and printer with an addition of a few types of equipment as well as an expansion or utilization of the underutilized production plants owned by the company in various regions globally. In the short run, the fixed and variable costs are likely to increase as the company stabilizes in the production of the new device (Luck, McBurney, & Preist, 2003). Over time, these costs will stabilize as the company achieves break-even point and starts recording profits from the sale of the device. The estimated costs involved in the design and manufacture of an all-in-one laptop and printer are as tabulated below: S/N Particulars Estimated Costs 1 Design 280 2 Factory costs 245 3 Equipment 260 4 Labor 200 5 Administrative cost 135 6 Miscellaneous Total 80 1200 20 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER The company incurs a total of $1200 in the design and manufacture of one all-in-one laptop and printer. Consequently, the firm’s pricing strategy is based on cost plus markup. The company introduces a mark-up of 25% on cost hence the average price for the all-in-one laptop and printer will be between $1500 and $2,000 depending on other factors such as location, distribution channels, and specifications among other critical factors. Competitor Pricing The price of the all-in-one laptop and printer is the best and the most appropriate in the market. The product will be one of its kinds in the market. It is, however, worth noting that the two products sold differently could be more costly to the consumer than the new product designed by Dellags. The average pricing for a laptop appropriate for the business class category of individuals across various competitors such as Dell, Apple, Lenovo, Acer, Asus, HP and Microsoft among others range between $1,000 and $2,500 depending on the laptop specifications and features. The prices of the printers on the other hand range between $50 and $350 depending on the specs and the technology involved in the design and manufacture of the printers. The main competitors in the information technology, printer segment include firms such as Epson,HP, and Canon among others. Given the average rates of the prices for the two products differently, the average costs of printing, computing, and scanning for the computers and laptops with the lowest specifications would be $1,050 and is dependent on the compatibility of the printer and the PC. The highest cost for a laptop with excellent specs in combination with a printer with the latest printing technology would be $2850.While in some cases the cost may be reduced, the all-in-one laptop and printer from Dellags would be the most convenient for use by the business class due to its capability for use in any place at any time. Additionally, the new product would make use of the 21 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER latest technology hence ensure effectiveness in printing, scanning and computer services. It is worth noting that the consumer will get value for their money as they can produce documents even during business travels at the click of a button. The most Appropriate Price for the Target Market An analysis of the target market shows a group of individuals willing to pay well for the latest technology in the market. Given this feature, it is estimated that the target market will be willing to pay $1750 for the all-in-one laptop and printer device given the application of the latest technology as well as the convenience involved with the product. The consumers would be willing to pay high prices for the invention as a result of the firm's commitment and brand reputation associated with efficiency and quality. Additionally, consumers would be willing to pay premium prices for the all-in-one laptop and printer based on the firm's commitment to creativity and innovation in the information technology industry. As such, the consumers who have used the company’s products are assured of the latest technology in the design and manufacture of the device. Pricing Strategy The most appropriate pricing strategy for the all-in-one laptop and printer would be the premium pricing approach. The product is the first among its kind in the market and ensures efficiency and convenience in computing, scanning, and printing for the consumers. Additionally, the product uses the latest market technology such as thermal printing as well as the best software and hardware parts for the design and manufacture of the multifunctional device. Premium pricing would be the most appropriate given that the target market for the equipment is the business category of individuals with a passion for innovation and creativity in 22 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER 23 the information technology sector (Yeoman & McMahon-Beattie, 2006). These individuals would be willing to pay more for the use of the latest technology in the design and manufacture of the multifunctional all-in-one laptop and printer. Refinement Successful product launching is a critical component in ensuring the successful launch of the all-in-one laptop and printer in the market. The panel gives a detailed plan regarding the planning and product launch as well as the activities critical for ensuring the successful launch of the product in the market. Phase Time Initial 6-9 planning months Activities • Determination of key objectives • A decision on the key parameters to phase be applied in the measurement of goals • Identification of target customers • Market research to evaluate the market size and an adequate understanding of consumer needs • Determination of a product positioning statement critical for the establishment of external Metrics FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER 24 communication • • Pre- Three launch months highlighting themes, deliverables, product-related phase before topics, timing and marketing channels content the to promote a product launch. launch • Development of launch calendar • Downloads of Evaluation of the Determination of pricing and product waiting distribution strategy list sign-ups date • • • Development of strategies critical for • Social media creating buzz during the product engagement and launch process mentions Informing the launch teams about the • Media key events, activities as well as the interviews and roles and responsibilities before and published after product launch. articles • Sales and One Channel month on the appropriate plan for the the product partner before provision of ongoing sales and distribution launch the channels success partners’ details product launch • Communication with channel partners Identification of and their Training sales and channel partners knowledge needs for strong FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER 25 support in the distribution and sales of the products in the market. Launch The Phase material day • The product is finally unveiled in the • market • Assessment of landing page traffic of the Soft launching strategy is applied to company test the viability of the product in the market • Monitoring of social media and PR buzz Post- Quarterly launch updates • Use of the metrics selected during the • Monitoring of planning phases to compare the launch and results of the product launch with performance follow – planning objectives. throughout the up • launch phase Gathering feedback from customers, channel partners, and the sales team • • Use of the follow-up data Establishment of an ongoing plan for for optimization product awareness and lead of the ongoing FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER generation • 26 marketing efforts and Application of new customer providing the successes to capture momentum in necessary product success information for the management to ensure adequate control in the design and distribution of the all-in-one laptop and printer in the market. It is critical to note that the success of the product launch and the branding strategy adopted by Dellags Company in promoting the all-in-one laptop and printer in the market is dependent on adequate planning conducted during the evaluation of the project idea. Various stages are involved in supporting the successful launch of the product in the market and consequently allowing for follow-ups quarterly to ensure that the post-launch phase contributes to the overall performance of the company in the market. The various stages of product launch captured in the product dashboard seek to ensure the preparedness of the company for the FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER product launch as well as the ability of the company to promote and generate sufficient revenue from the sale of the all-in-one laptop and printer in the market (Cooper & Kleinschmidt, 2011). Success on New Product and Branding New product launch in the market is a critical event for Dellags Company. The move seeks to increase the levels of revenue for the firm as well as being growth and a differentiation strategy for the company in the information technology industry. There is a need to evaluate the success of the new product launch to determine if the introduction of the all-in-one laptop and printer in the market contributed positively to the performance of the firm. The first critical approach in determining the success of the new product launch in the market is whether the product introduction achieved the goals set during the planning phase of product introduction. For example, Dellags Company had established the purposes of product introduction to be a 10% increase in the revenue generated over the first quarter following the product launch. In evaluating the success, therefore, the trends of income collected over the first quarter after the start of the product launch will be assessed. If there is an overall 10% increase in revenue, the product launch is considered successful. The success of new product introduction in the market will also be based on the ability of the all-in-one laptop and printer to meet the needs of the consumers in the market. The success will be measured in the product’s ability to offer technical features and performance levels superior to all the existing products in meeting the printing, computing and scanning needs of clients. An increased buy-in for the product will be based on the company’s ability to sufficiently identify the existing gap in consumer demand and consequently developing a product that meets those needs. The strength of Dellags Company to discuss product plans with customers is a 27 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER critical step in the alignment of product development to market needs and consequently supporting the building of expectations before product launch. The success of the launch of the all-in-one laptop and printer in the market is also dependent on the motivation of the company’s sales team. The product launch will be considered a success if the company’s sales team is committed to selling the product to the consumers. This will be evaluated in the ability of the sales team to explain and demonstrate product benefits to the end users, a move critical for informing consumer choices of the product. Market awareness is another crucial factor in new product success in the market. There is a need for Dellags to acquire customers for the all-in-one laptop and printer as quickly as possible upon product development to maintain momentum concerning product performance. The success of product launch will, therefore, be evaluated based on the company’s ability to create awareness of the product across the target market necessary for the generation of high levels of interest and knowledge on the product (Luca & Atuahene-Gima, 2007).The product will be considered successfully launched and accepted in the market if the company can sell 10,000 units of the product within the first three months of its launch. The existing distribution system for the all-in-one laptop and printer is also is a critical element in determining product success in the market. The current distribution channel will determine the speed with which the product reaches to the final user. It is crucial that the company ensures the availability of the product to meet the initial demand forecasts. Success Factors for New Product development It is critical to note that the success of the development of the all-in-one laptop and printer originates right from the planning phase of the new product development. Several factors come into play in the determination of the ability of the all-in-one laptop and printer to be 28 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER successful in the market. Right from the product planning and development phase, there is a need for top management support for the design and launch of the product in the market. This will ensure the availability of adequate resources for the design and manufacture of the product as per the customer specifications and needs (Ernst, Hoyer, & Rübsaamen, 2010). Dellags Company should focus on market orientation in the design and manufacture of the all-in-one laptop and printer. The design team will influence the current market orientation of the company to ensure the development of high-user experience based on the adequate discovery of customer needs as well as policies put in place to meet those needs (Lindgreen et al., 2009). Dellags Company will ensure that the technology applied in the design and manufacture of the all-in-one laptop and printer is suitable for the market. This means that the company will choose the appropriate technology with the end user of the product in mind. Another critical success factor in the design and development of the all-in-one laptop and printer is knowledge management. It is crucial that the administration of Dellags Company ensure the availability and free flow of knowledge to all the critical stakeholders in the project for the most suitable decisions necessary for promoting project success (Kaufmann, Loureiro, & Manarioti, 2016). To boost the success of the all-in-one laptop and printer in the market, Dellags Company will ensure the collaboration of the design, product management and development teams in selecting the most appropriate new product development strategies. Additionally, product development speed is a critical factor to successful product launch. It is essential that the management of Dellags Company ensures the availability of the all-in-one laptop printer in the market within the shortest time possible. As such, the company will provide a balance between maximizing the speed for delivery while offering maximum protection and quality for the ultimate user of the product. The design processes adopted by the company will 29 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER also influence product success in the market. It is critical that the company establishes clear design and development processes through collaboration between the various critical stakeholders involved in the design, manufacture, and distribution of the product in the market. The success of the all-in-one laptop and printer is also based on the capabilities and competencies of the new product development teams. There is a need for the company to ensure that the teams working in the design, manufacture, and distribution of the new product is highly creative to take advantage of such expertise in the design and production of a high-quality product capable of adequately meeting consumer needs. Feedback Loops Constant and regular analysis of the performance of the all-in-one laptop and printer is critical in the continuous assessment and control to ensure production as per the demand and the consumer needs. As such, Dellags Company will put in place various control and evaluation measures critical for performance monitoring. The performance monitoring and feedback loops will be created based on the consumer reaction and specific needs for the product. A survey will be conducted monthly to adequately determine the needs of the consumers and consequently to provide feedback to the critical departments of the organization to ensure customization of products as per consumer needs. It is also critical to monitor the sales thresholds of the product in the market. The management of the company will set up a target for product sales every quarter which will then be analyzed to determine if the sales are as per the thresholds. The company has established minimum threshold of 10,000 units of product sales in the first three months after the launch. The figure is expected to rise by 15% every quarter to reach sales peak after three years of product existence in the market. The information from this evaluation will be passed to the 30 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER management of the company to put in place corrective measures in the case that the sales are below the set thresholds. Product quality is a critical factor in Dellags Company. As such, the company will ensure that processes put in place in the design and development of the all-in-one laptop and printer are engraved in quality to ensure the best overall outcome of the product. The company will appoint a process committee that oversees the design and production of the product to ensure quality throughout the process. The oversight committee will define measure, analyze, improve and control all the operations to guide product development. A focus on quality assurance as well as the identification of vulnerabilities helps in streamlining product quality and reducing the risks associated with product failure for both the company and its customers. The customer feedback loop is the most critical in the determination of whether the product meets the customer needs or not. The feedback obtained from the consumers regarding product features and functionalities is essential to informing the decisions and controls adopted by the company to ensure the customization of product to meet consumer needs. The feedback allows the product team in the company to uncover any pain points of the consumers and provide solutions in such circumstances through adjustment of product features, identify the functionalities and features that consumers care about in the product as well as the prioritization of product roadmaps accordingly. At Dellags, the product development team adopts the customer-centric approach to product development hence the need to apply a customer feedback loop to enable the company adequately understand the needs and customer feedback for the customization of the product to meet those needs. The product development team will obtain feedback from the customer in a variety of ways. These include; customer interviews, surveys, the customer support teams, the customer 31 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER metrics derived from the dashboards as well as the feedback forums. Additionally, feedback may be ob6tained from the product sales team concerning consumer reaction to the all-in-one laptop and printer in the market as well as the overall reaction of the employee regarding the product. The power of the social media is also a critical feedback tool that could offer valuable insights on product reception in the market as well as any other important feedback that could support the company’s development of a customer-centric product; adequately meeting the needs of the consumer. Customer success is also a critical concept in the determination of customer reaction and acceptance of a new product. The customer success teams are responsible for driving the adoption, engagement and continued growth in the usage of the all-in-one laptop and printer. In addition to such survey and customer feedback tools, Dellags Company will carry out churn surveys to determine the consumer shifts and movement concerning the use of the all-in-one laptop and printer. This information is critical in informing company decision on the customization of product features to appeal to the consumers in the market. The product development exit is based on the inability of the product to impress potential customers and thus its lack to generate revenue from the sale of the all-in-one laptop and printer in the market. Dellags Company has set the minimum threshold at 10,000 units of product sold within the first three months after launch. The management of the company will opt out of the market if the product sales fail to meet these targets by 75%. This means that Dellags will exit the market if within the first three months; the company does not achieve sales of 7,500 units. Other Factors It is critical for the management of Dellags Company to note that various factors come into play in driving the growth for the all-in-one laptop and printer. Complexity refers to the degree of complexity associated with the use of the new product in the market. It is therefore 32 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER critical that the company adequately creates awareness of the usability and the specifications of the new product (Wang & Miao, 2015). It is also worth noting that compatibility is a critical component that could boost the acceptability and sales of the new product in the market. Dellags Company should, therefore, ensure that the technology adopted for use in the design and manufacture of the all-in-one laptop and printer is compatible with a variety of software and hardware systems. In creating awareness about the product as well as in the promotional campaigns and advertisements selected, Dellags should emphasize the compatibility of the product with the existing technologies, a significant move that will increase the buy-in and raise the interest of the potential users of the product. The all-in-one laptop and printer boasts of relative advantage over the existing products used in computing, scanning and printing services in the information technology industry. The feature is critical in promoting the product uniqueness in the market and thus gaining a competitive edge over the company’s competitors (Danneels, 2002). As such, Dellags applies the product differentiation strategy to achieve a competing edge in the market as a result of the uniqueness of its latest product in the market. Observability is another critical driving force in promoting the acquisition and use of the all-in-one laptop and printer in the market. It refers to the degree to which the benefits that accrue from the use of the product can be observed and communicated. The use of the all-in-one laptop and printer offers benefits to the users of the product; hence the observability feature of the product is critical in promoting the new device in the market. Triability is the degree to which a new product can be tried out in the market to promote an increased knowledge of its uses and benefits among the potential consumers. It is critical that Dellags Company provides the product in its stores to support increased consumer knowledge of 33 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER the product in the market essential in making purchase decisions by the firm's potential users of the product (Joshi & Sharma, 2004). Dellags Company will apply various techniques in evaluating the success of the launch of the all-in-one laptop and printer in the market. It is worth noting that the survival rates of new products in the market are meager hence the need for the company to evaluate the success of the product launch at regular intervals following the start. Dellags Company seeks to ensure that the launch of the all-in-one laptop and printer is not counted among the 95% of the new product launches that fail and result in losses. The most appropriate metric of success that will be applied by Dellags Company in quantifying the success of the start of the all-in-one laptop and printer is the time taken by the firm to attain profitability based on the design, manufacture, and sell of the product in the market (Cooper & Kleinschmidt, 2007). This is the time required to sell enough of the product in the market to meet the initial cost outlay for the design and manufacture of the product and hence start generating revenues. It is therefore crucial that the company evaluates critical success factors and hold teams accountable to ensure successful product launch and the overall profitability of the firm in the market. 34 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER References Aydalot, P., & Keeble, D. (2018). High technology industry and innovative environments: the European experience. Routledge. Bayus, B. L., Erickson, G., & Jacobson, R. (2003). The financial rewards of new product introductions in the personal computer industry. Management Science, 49(2), 197-210. Byrd, T. A. (2002). Information technology, core competencies and sustained competitive advantage. In Collaborative Information Technologies (pp. 181-202). IGI Global. Chareonwongsak, K. (2002). Globalization and technology: how will they change society?. Technology in Society, 24(3), 191-206. Cooper, R. G., & Kleinschmidt, E. J. (2007). Winning businesses in product development: The critical success factors. Research-Technology Management, 50(3), 52-66. Cooper, R. G., & Kleinschmidt, E. J. (2011). New products: The key factors in success. Marketing Classics Press. Danneels, E. (2002). The dynamics of product innovation and firm competences. Strategic management journal, 23(12), 1095-1121. D'aveni, R. A. (2010). Hypercompetition. Simon and Schuster. Dutta, S., Geiger, T., & Lanvin, B. (2015). The global information technology report 2015. In World Economic Forum(Vol. 1, No. 1, pp. P80-85). Ernst, H., Hoyer, W. D., & Rübsaamen, C. (2010). Sales, marketing, and research-anddevelopment cooperation across new product development stages: implications for success. Journal of Marketing, 74(5), 80-92. Heshmati, A. (2003). Productivity growth, efficiency and outsourcing in manufacturing and service industries. Journal of economic surveys, 17(1), 79-112. 35 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Joshi, A. W., & Sharma, S. (2004). Customer knowledge development: antecedents and impact on new product performance. Journal of marketing, 68(4), 47-59. Kandampully, J. (2002). Innovation as the core competency of a service organisation: the role of technology, knowledge and networks. European journal of innovation management, 5(1), 18-26. Kandampully, J. (2002). Innovation as the core competency of a service organisation: the role of technology, knowledge and networks. European journal of innovation management, 5(1), 18-26. Kaufmann, H. R., Loureiro, S. M. C., & Manarioti, A. (2016). Exploring behavioural branding, brand love and brand co-creation. Journal of Product & Brand Management, 25(6), 516526. Lindgreen, A., Antioco, M., Palmer, R., & van Heesch, T. (2009). High-tech, innovative products: identifying and meeting business customers' value needs. Journal of Business & Industrial Marketing, 24(3/4), 182-197. Link, A. (2013). Technological Change & Productivity Growth. Routledge. Luca, L. M. D., & Atuahene-Gima, K. (2007). Market knowledge dimensions and crossfunctional collaboration: Examining the different routes to product innovation performance. Journal of marketing, 71(1), 95-112. Luck, M., McBurney, P., & Preist, C. (2003). Agent technology: enabling next generation computing (a roadmap for agent based computing). AgentLink. Malone, M. S. (2007). Bill & Dave: How Hewlett and Packard built the world's greatest company. Penguin. Martin, K. E. (2015). Ethical issues in the big data industry. MIS Quarterly Executive, 14, 2. 36 FINAL PROJECT: ALL-IN-ONE LAPTOP AND PRINTER Shepherd, R. W. (2015). Theory of cost and production functions. Princeton University Press. Trott, P., & Hoecht, A. (2007). Product counterfeiting, non-consensual acquisition of technology and new product development: An innovation perspective. European Journal of Innovation Management, 10(1), 126-143. Vendrell-Herrero, F., Bustinza, O. F., Parry, G., & Georgantzis, N. (2017). Servitization, digitization and supply chain interdependency. Industrial Marketing Management, 60, 69-81. Vincent, L. (2008). Differentiating competence, capability and capacity. Innovating Perspectives, 16(3), 1-2. Wang, G., & Miao, C. F. (2015). Effects of sales force market orientation on creativity, innovation implementation, and sales performance. Journal of Business Research, 68(11), 2374-2382. Yeoman, I., & McMahon-Beattie, U. (2006). Luxury markets and premium pricing. Journal of Revenue and Pricing Management, 4(4), 319-328. 37 Running head: PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 1 Project Milestone One: Operations Management Introduction Dellags Company operates in the computing and printing industry. The company’s recent move has been the design and manufacture of an all-in-one laptop and printer to meet the needs of particular target markets. The step was based on the company's financial capability as well as expertise in the printing and computing industries. Various changes in operations in the industry bear a significant impact on the activities of Dellags following its introduction in the market. The paper assesses the significant forces impacting operations in the industry, critical obstacles in the development of the product, changes in services as well as the key trends in production and the impact of these trends on business operations. Significant Forces Shaping Operations Management Various forces have played a substantial role in cot rolling the day to day operations management at Dellags Company. Changes in the political environment have been vital to changes in the company’s operating environment as well as the overall management of the company’s operations. Environmental issues revolve around various aspects of the company’s activities as well as the overall impact of such factors on the environment. Government policies related to global employment policies, thus bearing a significant influence on the overall operations of Dellags. While not too common, other environmental factors affecting the activities of the company include wars and conflicts within the location at which the firm operates as well as future legislation and trading policies. Economic factors also have had a significant impact on the operations of Dellags Company. Various elements in the economic environment of the company have necessitated for PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 2 changes in activities aimed at ensuring that the company achieves profitability. Such factors revolve around the financial stability of the country within which the firm carries out operations, the global economic conditions, the market trends as well as the interest rates and exchange rates. Such factors have called for the need for the company to capitalize on costs in operations for the overall performance of the company. Social factors have also had an impact on the operations of Dellags Company. These factors include the lifestyle trends of customers, demographic dispersion, the changing tastes and preferences of the consumers as well as consumer buying patterns. Other critical factors in the social arena affecting the operations of Dellags right from the design and manufacture of the products to its distribution in the market include the advertising and publicity and ethical issues affecting the company’s products. The social factors have shaped the overall perception of the company in the market as well as the adjustment of the company’s operations to meet the needs of the consumer. The technological environment has also had a significant effect on Dellags operation management techniques. The changes in the technical environment have affected the latest trends and application of modern technologies in the design and production of the firm’s products. These factors include the technological trend s and developments, research and development expenditures incurred in the design and dproduction of new products as well as maturing technology that erbecome obsolete threatening the company's operations and profitability (Khanna, 2015)n. . With the advancing technology, various legislations have been put in place to regulate technological activities. These legislations have also had a significant impact on the operations of the company. Additionally, advancing technologies have influenced important innovation and creativity in the computing and printing industries. Other factors in the PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 3 information and communication industry have also significantly changed the operations and management of Dellags Company. Key Obstacles and Issues in Operations Management The evolution of operations management was not an easy task for the management of Dellags Company. The management of the company faced a series of obstacles along the way in adjusting its operations to meet the changing needs of consumers as well as the other forces that necessitated the need for changes in the firm’s operations. Globalization was one such factor. While the company sought to adjust its services to meet the tastes and preferences of consumers, there was a need to improve operations to fit the global market. The operations managers f the company had to make adjustments and coordinate the various functions of the management to ensure the production of products to remain competitive in the market. Another obstacle in the transition of the company’s operations management practices was the increasing need for sustainability in the design and manufacture of the company's products. The rising calls for sustainability in the global market had a significant effect on the operations of Dellags Company (Khanna, 2015). As such, the company had to incur additional costs to invent product parts that boosted the overall sustainability of operations in the company. In services, the company had to take into consideration factors related to the safety, welfare, communities, environment as well as economic sustainability. The company had to implement best practices with a concern for all the three pillars of sustainability. It was also evident that the operation managers of Dellags Company faced an obstacle in ensuring effective communication across various departments of the company. There was a need for the operations managers to put in place mechanisms to ensure effective communication with both internal and external stakeholders. The operations managers had to take time to PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 4 communicate messages related to changes in the management of operations as well as processing the messages directed to the department. The need for effective communication was also critical for building employee morale and deepening trust with management. The design of systems to address the changes in operations management was also another obstacle for the operations managers at Dellags Company. There was a need for managers to develop critical systems that allowed for the design and manufacture of quality goods and services to meet the needs of consumers in the market Handling Obstacles The management of Dellags Company had to handle the obstacles to ensure the continuity in operations as well as the overall profitability of the company in the competitive industry. The management devoted an increased budget to handle the transition in its services to the current operations systems. The budget was critical in the training of employees on the changes as well as the establishment of effective channels of communication and the designing of essential systems to ease the transition. The company also offered training sessions for the company’s employees to inform them of the changes as well as putting in place measures to facilitate development in the firm’s operations. Additionally, the company had to engage experts and consultants in the operations management field to ease the implementation of changes. The consultants provided the necessary expertise for smooth transitioning of operations in the company. They formed a link between the present and the future desired state of services in Dellags Company. It was upon the smooth transitioning that the company disengaged the consultants who continued to offer support for the company. PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 5 Changes to Operations Management Philosophies and Organizational Structures The evolving complexities in operations of businesses have called for changes in the operation management philosophies and organizational structures. A significant factor for the differences, in theory, has been the impact of globalization on the operation of an organization. Globalization has been an essential factor affecting the operations of the organization and consequently leading to the changes in operation management philosophies as well as organizational factors (Smart, Maddern,& Maull, 2009). Globalization has been vital in offering better opportunities for growth of businesses as well as optimization of the various costs related to the operations in organizations. As such, the operations of an organization have been influenced by globalization forces affecting several operations. Globalization has seen the move by firms to reduce costs through utilization of employees from various geographical regions as well as the expansion of firm’s objectives to cater for the need of various internal and external stakeholders (Puig, Marques, & Ghauri, 2009). The modern management of operations in an organization revolves around various operation management theories and practices. Business process redesign is a technique vital for the analysis and design of workflow and business processes in an organization (Chang, 2016). The approach is critical in helping companies to restructure organizations through the design of business processes to be in line with n strategic plans of the organization. Reconfigurable manufacturing systems play a critical role for organizations primarily in the technology industry. The firms in the industry design systems to incorporate accelerated changes in the structure, software, and hardware components. The approach is vital in rapid adjustments of production processes to ensure continued operations during transition phases as well as enabling organizations to efficiently respond to the market as well as system changes. The six sigma PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 6 approach to operations management defines steps and sequences in the effective management of operations in an organization (Pepper & Spedding, 2010). The adoption of this approach aims at achieving financial efficiency through reduction of costs and maximization of profits. Critical ratios come into play in the application of the six sigma approach in the management of operations in an organization. These include trending charts as well as defect calculation approaches, among others. Another critical approach that has led to the changes in operation management philosophy and organizational structures is the lean manufacturing approach. The system supports the move by an organization to eliminate wastes within the manufacturing process, thus ensuring efficiency in operations. Business Operations of Dellags Company Dellags Company applies various organizational management practices in ensuring the effectiveness in the management of operations. The company regularly reviews plans and objectives that must be compacted to achieve the overall goals of the firm. The company then determines the work activities as well as product designs and actions critical for the accomplishment of the set objectives. Another crucial step in the management of operations at Dellags Company is the classification of activities into manageable units to ensure smooth operations in the company. This is followed by the assignment of activities and delegation of authority to various employees and executives to ensure that tasks and activities are carried out according to the plans (Tyler & De Cremer, 2005). The company then determines a hierarchy of relationships to ensure accountability in the operations of the company. The organizational processes adopted by Dellags Company are critical to the achievement of the overall objectives of the firm. The company seeks to remain competitive in PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 7 the industry while designing and producing products that adequately meet the changing needs of the consumers in the market. The company's mission, vision, and values come into play in the design and application of various organizational practices. The activities surrounding the operations of the company are in line with the company’s strategic plans to expand operations and remain profitable in the market. Various factors are critical to the productivity and profitability of Dellags Company. One of such crucial factors is the human resources of the firm. The company is well staffed with expert and well-skilled employees in various departments of the company. Dellags is committed to employee development through training and development approaches critical for boosting productivity and the overall productivity of the company. Additionally, the organizational structure adopted by the firm seeks to ensure the smooth running of operations in the company thus maximizing operations as well as productivity and profitability of the firm (Foster, Haltiwanger,& Syverson, 2008). Marketing efforts applied by the company also create awareness of the firm’s products across global markets and build on the reputation of the firm in global markets. The move is vital for increased sales revenue and the overall profitability of the company. Critical Trends in Production, Quality, Resource and Information Management Trends in the manufacturing sector aimed at achieving efficiency in operations while ensuring increased productivity and profitability for firms. Various patterns include the reduction in the product lifecycle to ensure availability of products for consumers within the shortest time possible. The supply chain management is also being developed to provide adequate product distribution to the ultimate consumers. This applies to Dellags Company, which has put in place a well-established supply chain to ensure the availability of company products to users PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 8 globally. Other critical trends in operations and production in an organization include sustainability in operations and lean operations. There is a need for firms to ensure the creation of the right quantity of products in response to the demand while ensuring sustainability in their operations (Gunasekaran & Ngai, 2012). The companies continue customizing their services along the economic, environmental, and social pillars of sustainability. Quality is also becoming key in the manufacturing industry (Beer, 2003). Producers are now totally committed to quality through the establishment of various processes in the manufacturing process that ensure total quality management for the products. While trying to minimize costs and maximize profits, firms do so around the need to offer the best quality products to the consumers (Basu & Wright, 2012). In the design and manufacture of its products, Dellags Company is committed to product quality. The move has been vital in building the firm’s reputation in the industry. Use of resources is also a crucial factor in the effective management of operations. Firms are in the lookout for methods of optimal use of funds for an optimal level of production. They strive at minimizing wastages for adequate production levels as well as optimal output from the available resources. Firms in various industries are taking information management as a vital factor for the effective management of operations. Firms are now looking for ways of ensuring the free flow of information within the company and among the company’s external stakeholders for the overall performance and productivity. Knowledge is critical for effective management of operations as well as the overall performance and productivity of an organization in the industry within which a firm operates. PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 9 Impact of Key Trend on Business Operations of Dellags Company The trends in production, quality, and resource and information management have had a significant influence on the operations of Dellags Company. The company is committed to the effective management of its services to ensure an enhanced overall outcome regarding productivity and profitability of the company. The company has adopted various techniques in production to build a reputation and ensure competitiveness in the industry. These include sustainability through a consideration of the many pillars of sustainability in the design and manufacture of the firm’s products (Govindan et al., 2014). Additionally, the company is committed to the quality of products customized to meet the needs of consumers. The latest addition in the market; the all-in-one laptop and printer exhibits the company's commitment to excellence. Additionally, the firm is committed to the effective utilization of resources for enhanced production capacity. The company is also committed to the free flow of information within the organization achieved through the adoption of effective communication channels. As such, information is passed freely within the various management levels of the company to ensure that all the employees are aware of the operations as well as the future desired stare of the company. PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 10 References Basu, R., & Wright, J. N. (2012). Quality beyond six sigma. Routledge. Beer, M. (2003). Why total quality management programs do not persist: the role of management quality and implications for leading a TQM transformation. Decision Sciences, 34(4), 623-642. Chang, J. F. (2016). Business process management systems: strategy and implementation. Auerbach Publications. Foster, L., Haltiwanger, J., & Syverson, C. (2008). Reallocation, firm turnover, and efficiency: selection on productivity or profitability?. American Economic Review, 98(1), 394-425. Govindan, K., Azevedo, S. G., Carvalho, H., & Cruz-Machado, V. (2014). Impact of supply chain management practices on sustainability. Journal of Cleaner Production, 85, 212225. Gunasekaran, A., & Ngai, E. W. (2012). The future of operations management: an outlook and analysis. International Journal of Production Economics, 135(2), 687-701. Khanna, R. B. (2015). Production and operations management. PHI Learning Pvt. Ltd.. Khanna, R. B. (2015). Production and operations management. PHI Learning Pvt. Ltd.. Pepper, M. P., & Spedding, T. A. (2010). The evolution of lean Six Sigma. International Journal of Quality & Reliability Management, 27(2), 138-155. Puig, F., Marques, H., & Ghauri, P. N. (2009). Globalization and its impact on operational decisions: The role of industrial districts in the textile industry. International Journal of Operations & Production Management, 29(7), 692-719. Smart, P. A., Maddern, H., & Maull, R. S. (2009). Understanding business process management: implications for theory and practice. British Journal of Management, 20(4), 491-507. PROJECT MILESTONE ONE: OPERATIONS MANAGEMENT 11 Tyler, T. R., & De Cremer, D. (2005). Process-based leadership: Fair procedures and reactions to organizational change. The Leadership Quarterly, 16(4), 529-545. Running head: PROJECT OPERATIONALIZATION Project Operationalization Potential Costs, Risks, and Benefits of Operationalizing the project The all-in-one laptop and printer designed and produced by Dellags Company is associated with various costs, risks as well as benefits that could accrue from the launch of the product. The project revolves around the purchase as well as customization of the existing tools and equipment for the design and manufacture of the all-in-one laptop and printer. Although the company has in place the plant for the production of the product, there is a need for modification of the plant as well as the installation of new machines for the design and manufacture of the product. Additionally, the company has to invest in new technology to ensure the production of the all-in-one laptop and printer using the latest printing and computing technologies in the market. Since the product is aimed at the tech-savvy individuals in the market, the company should equip its research and development team to apply the latest innovative technologies to increase the product buy-in in the market. Another vital cost in the operationalization of the project at Dellags Company is the marketing costs for the new product. The all-in-one laptop and printer is a one-of-its-kind product in the market hence the need to create awareness about its existence as well as its uses to gain following among the potential users of the product. As such, the company will have to invest a substantial budget in its marketing and sales department. This is also made possible through the strengthening of the existing supply chain systems in the company to ensure that the product is available to meet the needs of the consumers in the global market. The risks of the operationalization of the project involve the impact on the existing company products in the market. Dellags Company has been famous for the design and manufacture of both personal computers as well as printers. The company has generated revenue 1 PROJECT OPERATIONALIZATION and ensured profitability through the sale of personal computers and printers in the market. The operationalization of the all-in-one laptop and printer in the market could have adverse effects on the sales of the computers and printers in the market. There is a likelihood that the consumers could shift their interests to the new product leaving the existing printers and computers. This could have adverse effects on the revenue and profitability of Dellags if the company as to depend on the latest product for the generation of income as well as ensure profitability. The operationalization of the all-in-one laptop and printer, on the other hand, is associated with benefits both to the company and the potential consumers. The new product is beneficial in meeting the printing, scanning, and computing needs of the consumers anywhere at any time. Consumers would likely need to acquire this product to enhance the smooth running of their global businesses given the ability of the product to ensure the free flow of information necessary for the efficient running of business operations. Additionally, the company could benefit from an increased market share as well as increased revenues, given its ability to design and produce a product that adequately meets the needs of consumers in the market. The move could increase the capability of the company to gain a competitive advantage in the computing and printing industry necessary for overall growth and development in the company. 2 PROJECT OPERATIONALIZATION 3 Work Breakdown Structure Manufacturing Product Design Design Product testing Research &Develo pment Design engineering Acquisiti on of materials Sales & Distribution Tests & Controls Production process Pilot market testing Product promotion Sales & distribution Justification of Tasks and Subtasks The work breakdown structure in the design and manufacture of the all-in-one laptop and printer involve the design, manufacturing, and distribution of the product to the ultimate consumer. The product design phase includes the necessary research conducted to establish the needs of the consumers in the market. This activity is vital for making informed decisions on the design of a product that meets the needs of the consumers in the market (Zott & Amit, 2010). The design engineering process involves the actual model of the all-in-one laptop and printer based on the identified needs of the consumers. The activity is conducted by a team of design engineers with the aim of customization of the product to meet consumer needs. Design testing is performed by a group of consultants to ensure that the designed product meets the needs of the consumers. The manufacturing process of the product involves the conversion of the raw materials included in the production process as well as the integration of technologies leading to the PROJECT OPERATIONALIZATION creation of a finished product that meets the computing, scanning and printing needs of the consumers. The activities included in this phase are the acquisition of the necessary materials and technologies, the actual production process carried out in the customized production plant as well as the test and controls conducted to ensure that the output is similar to the product design. The raw materials involved in this process should be of premium quality to ensure the production of a quality product that appeals to the business category of individuals with a flair for highquality products. The tests and controls are carried out to ensure that the product output as per the design. The checks and inspections are conducted by a team of engineers to ensure that the product outcome meets the needs of the consumers in the market. Once the product has been produced, it is upon the marketing team to ensure the availability of the product in the market. The marketing management begins with a pilot testing of product reception. This is aimed at gauging the consumer reaction to the product. In cases where consumers have complaints or needs modification of product features, the design and manufacturing teams will come together to redesign and produce a product that meets those needs (Schmidt, Sarangee, & Montoya, 2009). Once this is achieved, the marketing team will ensure the distribution of the product through the traditional distribution channels as well as promotions to create awareness about the product and its uses in the market. Product promotion aims at promoting the current product as well as building the reputation of the company regarding its ability to provide product differentiation. The move is vital in creating a competitive edge for Dellags Company in the market and consequently, the generation of adequate revenue as well as the overall profitability of the company in the industry. 4 PROJECT OPERATIONALIZATION Key Milestones, Deliverables and Resource Requirements The key milestones in the design, manufacture, and distribution of the all-in-one laptop and printer lies within each of the significant activities in the work breakdown structure. The first milestone is the identification of the printing, scanning, and computing needs of customers achieved through targeted and objective market research. The design engineering team will then work on these consumer needs to design a product that meets the established needs. The key deliverable in this phase is a product prototype that could be developed into a final product capable of meeting the needs of the ultimate consumers. The design product testing aims at checking all the critical components of the product to ensure that the product output is customized to meet consumer needs. This phase of the product design and development seeks to ensure the company's capability to meet the time, scope, and quality deliverables of the product. It is estimated that the product design phase will take an approximated period of three months. As such, the product design team will stick to the application of high quality products and software programs as well as technologies to optimize costs while ensuring the production of a product that can become competitive in the market (Hoffer, 2012). There is a need for the team to stick to the product timelines and scope to keep the costs as per the budget to ensure that the overall costs in the design and manufacture of the all-in-one laptop and printer are manageable while the end product is customized to meet the needs of the consumers. The resources required in the manufacture of the all-in-one laptop and printer are the raw materials, hardware, and software component critical for the production of a product that meets the scanning, printing and computing needs of the consumers. The product manufacturing team will seek to acquire the highest-quality materials to assure the quality of the end product. 5 PROJECT OPERATIONALIZATION Additionally, the latest technologies in the printing and computing sectors will be applied in the manufacture of the product to ensure the production of the end product that is characterized by its capability to meet all the needs of the executive business category of individuals. The manufacturing of the all-in-one laptop and printer is estimated to take six months. This applies to the production of 1000 units for the pilot testing. The units for testing are minimized to ensure the optimization of projects costs as well as the ability of the company to acquire the necessary information for product customization to meet consumer needs. The time, scope, and cost objectives are vital in this process to ensure that the product outcomes are according to the plans established (Scott et al., 2010). There is a need for the delivery of the product to the market for testing within a reasonable time as well as the scope of the printing, computing, and scanning needs of the consumer. The outcome of the production process is an all-in-one market and printer that is offered in the market in the form of pilot testing to ascertain the consumer reactions as well as the establishment of the corrections that are required to ensure the customization of the product to consumer needs. The outcome of this process will be the production of a product customized to the needs of the business executives. It is vital that Dellags Company sticks to the projected costs of the merchandise as well as the established scope of the product to ensure that the output of the production process meets the needs of the consumers and promote the company's reputation in the highly competitive environment. Obstacles and Impediments to Meeting Scope-Time-Cost Objectives The management of Dellags Company aims at achieving the scope, time, and costs objectives in the design, production, and distrib...
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Milestone Three: Life Cycle - Outline
Thesis: The design and production of the all-in-one laptop and printer are aimed at meeting the
needs of the consumers in the market. The product is one of its kind in the market. With Dellags
Company being the pioneer designer and manufacturer of a product that combines the printing,
scanning and computing technologies in one product that appears in the form of a laptop.
The paper analyzes the milestone as follows:
I.
II.
III.

Lifecycle
Profit Generation
Phase-Out Plan


Running head: MILESTONE THREE: LIFE CYCLE

Milestone Three: Life Cycle
Name
Institution

1

MILESTONE THREE: LIFE CYCLE

2

Milestone Three: Life Cycle
Lifecycle
The design and production of the all-in-one laptop and printer are aimed at meeting the
needs of the consumers in the market. The product is one of its kind in the market. With Dellags
Company being the pioneer designer and manufacturer of a product that combines the printing,
scanning and computing technologies in one product that appears in the form of a laptop. The
new product is designed based on the shifting needs of consumers in the market. It is worth
noting that the project is vital for building the reputation of Dellags Company in the market
given the current status and expertise in the design, manufacture, and distribution of both printers
and personal computers in the market.
Introductory Phase
Dellags Company achieves this phase following the design and production of a prototype
of the all-in-one laptop and printer. During this stage, the management of the company takes
adequate time as well as applying the necessary resources for the design and manufacture of a
product that meets the needs of the consumers in the market (Stark, 2015). The phase involves
the close collaboration between the designers and producers of the product to ensure that the
product output meets the market needs. This also consists of the testing and debugging of the
printing and computing technologies used in the design and production of the all-in-one laptop
and printer. With the needs of the consumers identified from the results of market research, it
will take at least six months for the company to introduce the product in the market. The
introductory phase of the product lifecycle involves the use of significant resources as well as
time for the design of a product that meets the needs of the consumers. The project management
team, therefore, spends a substantial amount of time in research, design, as well as the

MILESTONE THREE: LIFE CYCLE
production of the product. The design and production team also carries out various tests to ensure
that the product meets the consumers’ needs and is accepted in the market.
During the introduction of the all-in-one laptop and printer in the market, the company
also spends a considerable amount of resources to create awareness about the existence of the
product as well as its uses to the consumers. The marketing team also plays a critical role in
answering any consumer concerns, thus ensuring the product sales in the market and boosting
revenue generation for the company.
High-viability Phase
The high-viability phase is considered the period within which the company generates
significant revenues from the sale of its product in the market. The all-in-one laptop and printer
is designed through the application of the latest technologies in the printing and personal
computing sectors. The company’s engineers apply these technologies and seek to produce a
product that combines all the capabilities in one product. Once the product has been introduced
in the market, and an increasing number of consumers become aware of its uses, the company is
expected to generate a significant amount of revenues from the sale of the product throughout the
company’s stores globally.
During this phase, the consumers are fully aware of the existence as well as the uses of
the product in meeting the scanning, printing and computing needs necessary for the successful
running of operations of an organization. The high viability phase is characterized by a
significant rise in the unit sales of the all-in-one laptop and printer as well as increased
profitability for the company in this product line. The expenses associated with the product
production also decreases significantly as the company’s management come up with more
efficient ways for the design and production in the product. The continuous market research also

3

MILESTONE THREE: LIFE CYCLE
boosts the customization of the product to meet consumer needs at this phase of the product
lifecycle (Rust & Espinoza, 2006). It is also critical to note that being a one of –its kind product
in the market, the product will have gained popularity in the market with the company gaining a
reputation for the production of unique and differentiated products. As such, the promotional and
advertising expenses reduces significantly as the company earns revenue from repeat customers
as well as those who purchase the product based on referrals and word of mouth advertising.
At this phase, the technologies applied are stable as the company benefits from the sale of
the product while the consumers feel safe to buy the product based on the market reputation. The
company generates and sell high volumes of the all-in-one laptop and printers during this phase
of the product lifecycle. Since it is the first in the market, this phase of the product lifecycle is
expected to be the longest as Dellags Company enjoy exclusive rights to the design and
manufacture of the all-in-one laptop and printer. Given the stability of the technologies applied
for this product, the management of the company expects that the product will be in an active
phase for a period of five to seven years. The company plans to generate maximum revenues
during this period as well as gaining increased reputation, market share as well as profitability in
the industry.
Product Phase-Out
With the advancing technologies in the personal computer and printing sectors, this phase
is likely to begin in the sixth year of the high-viability period. With continuous research, Dellags
Company predicts to have introduced other superior products to the all-in-one laptop and printer.
The phase-out stage may also come as a result of the design and manufacture of other competing
products in the market. This phase is characterized by a significant decrease in sales revenue as
well as the possibility of the company recorded losses from the p...


Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags