SLP Case Open Systems Theory

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SLP Case Open Systems Theory Introduction Joe Schmoe was the former VP of marketing. Joe thought he was doing a good job of managing the business in regards to the sales price, product development, and lifecycle management. Unfortunately for Joe, other were not as confident in his abilities to effectively navigate the product life cycle phases. Joe earned the skepticism towards his management style because he treated each product as if they were in the same phase of their life cycle. The three models of tablet computers are definitely in a category of consumer goods definitely follow the lifecycle phases rather well. The X7 model for example was found to be in the market introduction stage. The other models, the X6 and the X5, were found to be in the growth stage and the maturity stage. It is obvious that the three product lines should not be treated equally and this simulation will present an example of an alternative to the management of this product line. Simulation Year One In the first year of the simulation, X7 has been recently introduced to the market and is currently operating at a loss. However the X5 and the X6 both represent products that are currently profitable; yet since they are on an upward slope they are most likely either in the growth or maturity phases. With the product lifecycle approach in mind, the decision was made in the first year to devoted 60% of the R&D budget to the X7 since it is developing while holding the price
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