After discussing the pricing problem, Magers want to keep the 100 series price for $2.45, which is right. Even though the sales volume would increase to 1,000,000 from 750,000 by reducing the selling price from $2.45 to $2.25 per 100 pieces, the company would not make profit. Since the cost per 100 pieces for 100 series is $2.29, which bigger than $2.25. If the company sold at $2.25, the company lost money. Also, in the short run,
-Initially the problem was supposed to be the under-performance of vendors who didn’t commit themselves to the process. The problem was supposed to be the order fulfilling rate of Foster but later on it was revealed that Avion was the root cause of problems. The Materials department had given Foster orders for only 2500 units and the lead time was supposed to be 14 days. But later on, as seen in the case, the Production Department needed the supply in 10 days. Moreover, the Marketing Department had to cater to a demand of 4000 whereas the order was for 2500 only.
After discussing this matter with my attorney and with Joann from the Department of Labor we feel that Sav-On-Drugs did not handle the processing of my health insurance in an acceptable amount of time. As I indicated to both you and Christy that I had many test and procedures that I needed to have done and could not get them done because when it is not an emergency they require you to pay for the procedure a head of time if you do not have insurance. I now that Christy said that the insurance goes back to May 1 but that did not help me because they would not do the procedure without me paying for the test first. The notice of healthcare change was not sent to me until the middle of May. I in turn filled it out and returned it to you
THEIR FEILURES They failed to market the new product right, the price was set too low: on realizing the mistake they set out to increase the price quickly more than 30% in two years in US. However, this action wasn't possible in Europe's price controlled countries; clearly, the perceived value and future potential of the product had not been recognized or properly communicated prior to launch. The global market for Insulin hasn't been extensively explored; looking back in history, Lilly should have done a much better job in promoting the new product than they did. And In order to expand the market, Lilly shouldn't just concentrate in North-American market; instead they should have gone for a global vision of marketing strategy. Other mistakes on the product development efforts was that the market research they did wasn’t not very extended; this was a because they thought they didn’t need it because of their market share and brand
By spring 1978, DeLorean had yet to acquire enough funding for the project. DeLorean sought incentives and funding for the project from governments, to set up manufacturing facilities in areas that suffered from high unemployment. He made a deal with the Northern Ireland Industrial Development Board to set up manufacturing in Belfast, with the British government supplying $120 million dollars of the $200 million start-up costs. This was despite the fact that an assessment by consultants showed that the business only had a 1 in 10 chance of success. After the construction of the of the six building manufacturing plant, Production was to begin in 1979, but engineering delays and budget overruns meant assembly lines didn't start until early 1981.
"Generate More Repeat Customers" is useless as a KPI without some way to distinguish between new and repeat customers. "Be The Most Popular Company" won't work as a KPI because there is no way to measure the company's popularity or compare it to others. It is also important to define the Key Performance Indicators and stay with the same definition from year to year. For a KPI of "Increase Sales", you need to address considerations like whether to measure by units sold or by dollar value of sales. Will returns be deducted from sales in the month of the sale or the month of the return?
Yes, Wal-Mart provides many uneducated Americans with job however it isn’t a job from which can make livable wage. Wal-Mart pays all their employees besides management minimum wage. With prices on the rise like they are today it is hard for a person to live off minimum wage which is currently 7 dollars and 25 cents in New York. Not to mention if you have kids it is virtually impossible to live off minimum wage and if you do it’s an unpleasing struggle. Another problem is that there is no growth in your field if you work at Wal-Mart.
But the solution took years to develop and the market was never resampled or reevaluated. In the meantime, technology and the consumer found other alternatives to their communication needs, in particular cell phones. We believe that if Iridium had a market orientation instead of a product orientation focus, the company may have realized their solution needed to be revised or cut their losses. This problem was not found out until after 4.5 billion dollars were spent, causing the company to declare bankruptcy nine months after launch. The system did not operate as marketed because all satellites were not deployed.
They calculated the demand to be 2500 whereas the actual demandwas over 4000. The department was working in silo and had very little or no communicationwith the Marketing department. In a nutshell, they were interested in achieving LocalMaxima rather than achieving Global Optima . Moreover, they maintained an arm’s lengthdistance with vendors rather than considering them as strategic partners.2. Production Department: The production department didn’t provide the requisite data to thematerials management/procurement team.
Does the current paywall avoid the problems that disqualified these other two systems? The New York Times was afraid that the all or nothing model would drop the online traffic significantly. For example, when The Times of London introduced a paywall in May 2010, its traffic dropped from 2.79 million unique visitors before the paywall to 1.61 million a few months after the paywall was introduced. When the online traffic is dropped your online advertising would also drop. On the other hand you also increase your competitors’ online traffic.