What Group Has Learned during the Group Exercise - Coursework Example

Description of what the group has learned during the group exercise By: Course: Tutor: University: Department: Date due The offer Members in my group had divergent views regarding the offer. In order to narrow down our choice, we subjected the offer into the process of product development. Starting with idea generation, we explored various available opportunities for product development. My group understood that market research on customer needs was indispensible. Secondary sources were also consulted to generate the idea. Individual group member also made personal contribution towards idea generation. The generated idea was moved to the next stage of screening. This is where attributes of a product were interrogated and compared against each other to arrive at a product that offered the greatest benefit. Capacity of the product to meet organizational goals, needs of buyers, environmental changes, and ability of the company to produce the product were considered at this stage. Testing was the third stage, which entailed presenting of product idea to selected customers in order to understand customer attitude. An analysis of capability of the idea to contribute to sales, costs, and profits was analyzed. The fifth stage called for the development of attributes that customers want. Test marketing was then done with an intention of obtaining customer reaction and determining whether to proceed, modify the plan, or drop it. Commercialization was the final stage and entailed full-scale marketing and production of the product. The core competencies and value-adding processes My group found it difficult to determine activities that we could handle and those that could be outsourced. In line with the current trend in business operation, we arrived at a conclusion to concentrate our efforts on those activities that our business can handle to best level. Other services were outsourced. We were aware that to be competitive and attain competitive advantage, we needed to pay attention to our areas of proficiencies. In doing so, numerous opportunities were available to develop further our product. During group discussions, value-adding processes emerged as the main challenge. The solution to this was to work closely with customers while also conducting additional research. This would eventually aid in presenting a more acceptable and fulfilling product to a customer. The competition Members of my group were concerned with intensity of competition in the present globalised world. Many of my group members did not know how to address competition amid fast growing product development. To deal with this problem, it was necessary to stay ahead of competitors by valuing research and development. Processes as well ought to be improved consistently. Technology too plays a critical role in improving competitiveness of a company. In the present global world, the success of businesses depends on ability to stay ahead of competitors. Our company should move very fast to develop innovative strategies using technology. Many target customers have access to internet through mobile phones, laptops, and other technologies. This is a platform for a company to bring forth innovations consequently saving on costs and extending their market niche. Through internet technology, a company is able to bring together suppliers, customers, and distributors thus bringing about competitiveness in supply chain. Customer segments The issue that arose here is how to segment customers. Members in my group expressed varied opinions on segmenting customers. Since few customers are projected to buy the proposed product, area of focus should be narrowed down in order to eliminate unnecessary expenses. During segmentation, the areas such as organization’s sector, size, location, individual age, lifestyle, buying behavior are given attention. A good segmentation relies on extensive research on nature of customers. In this case, secondary and primary sources are consulted for information on customers. Segmentation often starts with deciding on data to be collection. The data from various sources are then integrated and analyzed. Communication between various units is vital to ensure that chosen strategy is accepted by the organization. Channels to market The group members failed to reach a consensus on the most appropriate channel to use in order to avail the goods to the customers. One of the channels is manufacture to customers. This is where the good is sold directly to the customers immediately after production. The impact of this channel is that costs incurred by intermediaries are eliminated substantially. The good can also move from the manufacturer to retailer and finally the customer. Thirdly is where a wholesaler and retailers are in the middle. Finally, the good can go through an agent, wholesaler, and retailer in the middle. The choice of distribution channels vary with the nature of good. It is important for the group to understand that where the channel is long, price of good is likely to be high because each individual in a channel would like to make a profit. Regardless of the chosen distribution channel, a company has to make sure that customers can access the product easily. Through technology, products are reachable from any part of the world. Depending on the product, skill in selling technical product is necessary. This is because some customers would require assistance in understating a product. To add on this, choosing a distribution requires a company to take into account control over the channel especially where there are competing goods. The cost and revenue drivers While discussing profitability of our business, some members in my group were not able to understand cost and revenue drivers. Some organizations make more profits while others register less profit because of cost difference in revenue and cost drivers. Strategic positing and operating efficiency in addition to competitive environment and customer dynamics have the greatest impact on cost and revenues. To realize a favorable outcome, an assessment of revenue and cost drivers is essential. Activities that influence revenues and cost should be identified and employed in developing strategies for a business. By looking at financial statements, a person is able to identify revenues and expenditure. This is where revenue and cost drivers are obtained. After pointing out cost and revenue drivers, management would then proceed to produce a strategic plan that affects the revenues in a way intended by management. As an example, revenue from a hotel can be increased by improving services, cleanness, marketing, and offering attractive rates for clients. Read More