Short term borrowing Chester company essay be necessary to finance operations and provide a cash cushion to prevent the need for an emergency loan. On the other hand, low spending in the low tech area of the market, where a marketing campaign is needed to still draw attention on the product you are presenting is also a weakness that the company needs to consider.
There are several other external environmental factors that may affect the company.
The plan that I developed focuses primarily on the success of the company for the next five years as there will be a lot of volatility in the market and further projections are impossible to make at this time. Indeed, a product that Chester sends out to the market will follow through on all four of the different phases in Chester company essay life cycle of a product, namely its introduction, growth, maturity and decline.
From high to low tech, the entire market is thus covered. First of all, the product is launched into the high tech sector of a market. The strategy that has been practiced by the company for several years now implies a low cost policy.
During the first year of business, this product will have the ability to appeal to customers across both segments of the B2B sensor market and will ultimately become the favored product of the low tech segment.
Indeed, it is my belief that the current strategy that the company is promoting encourages a…. Also, there is greater demand for products in the low technology segment of the B2B sensor market which is expected to increase approximately ten percent each year.
On the other hand, the sensor industry is a very dynamic one. We need to accept the fact that we may rarely see, in the high tech area, customers who are actually interested in buying a low priced high tech model. Production costs must also be greatly reduced. Indeed, we need to consider the fact that, while a certain new product has been launched and is located in the high tech zone of the market, several products are entering the maturity and decline phases.
This investment will be financed through the issuance of stock and long term bonds. Although the price of the product must be kept to a minimum this will be offset by decreasing costs which increases the contribution margin.
Referring to the sensor industry in particular, we need to mention again the impact of technological changes for the market.
A final note to be made in terms of the political factors and here we need to refer to governmental policies and governmental spending. The company has several weaknesses worth mentioning as well. Unfortunately, some sacrifices will need to be made early on to realize greater profits in the long term.
To cut prices below the competition, management should retain the current product and not invest much in research and development.
It is difficult to predict how the competitors within the B2B sensor market will be positioned which makes it essential for management to decrease costs as much as possible and increase market share within the low technology segment of the market.
My advice to the rest of the management team is to avoid the appeal of developing a new product for either market early on and to avoid the high tech market altogether within the first five years because it will be difficult enough to remain profitable and succeed without squandering business assets on developing a product which will have little chance of being profitable within that timeframe.
However, Chester Company shareholders may realize a loss in the first year due to the high marketing budget and cost of labor because the automation rating is low.
Nevertheless, we do take into consideration the fact that a product gradually becomes technologically obsolete, which means that, in time, throughout the product life cycle, it will turn, throughout the growth, maturity and decline phases, towards the low tech category of consumers.
How to cite this page Choose cite format: Download this Term Paper in word format.Related Documents: Chester Corporation Essays Capitalism and the Corporation Essay The problem to be investigated is the development of the corporation and the ever evolving role it.
Free Essay: Case: Chester & Wayne Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked for assistance with preparing. Chester Company Our Mission To serve all stakeholders, customers, and employees while becoming a global leader in the digital market.
Vision At Chester Company, we are striving to become a broad cost leader in the electronic sensor industry. Free Essay: Chester Company Our Mission To serve all stakeholders, customers, and employees while becoming a global leader in the digital market.
Vision At. The Chester company will increase its automation for the Cute product by Assuming no further change in capacity, how much will this investment in automation cost? Select: 1 $7, $17, $8, $15, Chester has negotiated a new labor contract Read More. View Essay - questions (2) from BUS R at Oxnard College.
1. The Chester company will continue to train their existing workforce at their current level to help reduce turnover and improve46%(24).Download