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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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...
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