Question

Given the contribution made on each of the three products in the following table and their position in the life​ cycle, identify a reasonable operations strategy for​ each:

Product	Product Contribution ​(% of selling​ price)	Company Contribution ​(%: total annual contribution divided by total annual​ sales)	Position in Life Cycle
Desktop computer	30	50	Growth
Palmheld computer	30	40	Introduction
Hand calculator	50	10	Maturity

1. Identify possible strategies for the desktop computer ​(Mark all that​ apply.)

A. Improve cost control for profitability and market share

B. Attempt to make production facilities more efficient

C. Modify and improve the production process

D. Increase capacity

2. Identify possible strategies for the palmheld computer ​(Mark all that​ apply.)

A. Attempt to make production facilities more efficient

B. Attempt to innovate high dash volume production

C. Develop supplier and distribution systems

D. Modify and improve the production process

3. Identify possible strategies for the hand calculator ​(Mark all that​ apply.)

A. Attempt to innovate high dash volume production

B. Attempt to develop an improved product

C. Improve cost control for profitability and market share

D. Modify and improve the production process

Answer 1

1. B. Attempt to make production facilities more efficient, and D. Increase capacity are the possible strategies for the desktop computer.

2. C. Develop supplier and distribution systems, and D. Modify and improve the production process are the possible strategies for the palmheld computer.

3. A. Attempt to innovate high dash volume production, and
C. Improve cost control for profitability and market share are the possible strategies for the hand calculator.

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