UNDESIRABLE EFFECTS (UDE’S)

Cosmetics Company Problem

1. Competition is fiercer than ever
2. There is increasing pressure to reduce prices
3. In more and more cases the price that market willing to pay does
not leave any margin
4. More than ever the market punishessuppliers who do not perform
as per expectations
5. Managers are trying to run the company based on their local
optimization
6. Various functions in the company blame each other for lack of
performance
7. There is unprecedented pressure to take actions that will increase
sales
8. There is a need to launch new products at an unprecedented rate
9. The constant introduction of new products confuses and spoils the
market
10. Most new / improved products and outlets eat into the existing
products and outlets
11. A large percentage of the existing sales force lacks sufficient sales
skills
12. Salespeople are overloaded
13. Production and distribution does not improve fast / significantly
enough
14. Engineering is unable to deliver new products fast and reliably
enough
15. Companies do not come up with sufficient innovative ideas in the
market
 UDE 12
Salespeople are
overloaded
UDE 1
Competition is fiercer
than ever

UDE 9
The constant introduction
of new products confuses
and spoils the market

UDE 8
There is a need to launch
new products at an There is pressure on
unprecedented rate sales people to bring in
more sales

UDE 2
In some There is increasing
advanced pressure to reduce
technology prices
industries there
One of the most is a scope to
effective ways of introduce new
improving sales is products at a
to introduce new fast rate
products

UDE 7 A desperate traditional

There is unprecedented method of improving
pressure to take actions sales is by reducing
that will increase sales prices