Professional Documents
Culture Documents
SUMMARY
Harper Manufacturing Increase in sales of 26 % annually for last 7 years. Last year sales declined by 18% and may decline a further 12 % this year . 3 products account for 40 % of sales All of them have lost a huge market share. Cancellation of contract with national retailer and entry of new competitors biggest issues .
REACTIVE PLANNING
Reactive planning is the process whereby future action is dictated as a response to whatever has already, or is now, occurring--- it is "reflex" or "knee-jerk" in nature . Reactive planning is an active attempt to turn back the clock to the past. The past, no matter how bad, is preferable to the present. And definitely better than the future will be. The past is romanticized and there is a desire to return to the "good old days.
FORECASTING
Quantitative methods: These types of forecasting methods are based on quantitative models, and are objective in nature. They rely heavily on mathematical computations. Qualitative methods: These types of forecasting methods are based on judgments or opinions, and are subjective in nature. They do not rely on any mathematical computations.
Quantitative Time Series Model This model which was followed by the company for the past 8 years . Causal Model
Qualitative Executive Opinion Market Research Delphi Technique The last 2 techniques to be followed in near future
SWOT Analysis PEST Analysis Competitor Analysis share of market , share of mind , share of heart . Paralysis by analysis
Buyer readiness stages Awareness , comprehension , Conviction , Order , Reorder Loyalty status Hard core loyals , split loyals , shifting loyals , switchers . Adoption process Awareness , interest , evaluation , trial , adoption
Public relations Focus on quality Product life cycle stages Blanket branding Push strategy New product development Diversifying product mix Product modification from time to time Reduction in profit margin for all 3 products
CONTINGENCY PLAN
BCG MATRIX
Build Share: here the company can invest to increase market share (for example turning a "question mark" into a star) Hold: here the company invests just enough to keep the product in its present position Harvest: here the company reduces the amount of investment in order to maximize the short-term cash flows and profits from the product. This may have the effect of turning Stars into Cash Cows. Divest: the company can divest the product by phasing it out or selling it - in order to use the resources elsewhere (e.g. investing in the more promising "question marks").