A company would divide their products on the basis of TECHNICAL and COST-RELATED factors. They would "test-market" certain products in pre-selected locations.
2. What factors influence an entrepreneur's perceived capacity to act?
Skills, age, equipment available, financial status, nature of risk, and other factors determine an entrepreneur's capacity to act, that is to build a business.
3. What is penetration pricing?
Penetration pricing starts with low prices to attract customers and then gradually raises prices. Distribution is improved and production is increased. Maximizing profit is the goal.
4. What are three useful tools for project planning and control?
Three useful tools are a milestone schedule, a Gantt Bar Chart and a work break-down schedule.
5. How could a company organize to transfer "know how" from R& D to production?
Know-How is transferred to production, from R&D, by: taking technical knowledge, adding it to market knowledge, and determining long-term and short term production goals. This is done by a group of engineers and managers (a team).
6. How could a company develop a realistic R&D budget?
A realistic R&D budget can be developed by knowing the source of funds, considering the technical strategy, and by comparing your company's budget to other companies' budgets.
7. What causes a "profit gap" in company operations and how is the gap closed?
A profit gap is caused either by unrealistic profit goals or expectations or by poor production efficiency. R&D can close the gap by increasing production, without sacrificing quality.
8. Name three elements of the marketing planning process and name the element essential for evaluation.
Marketing planning involves (1) market research, (2) sales research, and (3) an information system, as well as sales forecasting. Evaluation requires past, present and projected data on sales and market conditions.
9. What are the essential considerations in project management for planning and control?
The essential considerations are money and time, for planning and control.
10. What is the goal of Antitrust Legislation?
The goal of Antitrust Legislation is to ensure survival of a competitive economy, and to prohibit price discrimination and unfair or deceptive business practices. Also to discourage monopoly.
11. What historical factors influence the R&D organization and physical location?
Historical factors such as plant location, existing staff, size, budget limits and company policy influence R&D organization. Large companies may have separate R&D facilities. External factors such as competing products and consumer preferences determine R&D efforts. When company merges, its R&D policies may change.
12. What financial actions are under the control of the Board of Directors?
The Board of Directors controls all stock issues and sets dividend policies, reviews profit and loss statements, determines pricing strategies, directs the corporation's operations and sets executive salaries.
13. How has engineering management changed from the Frederick Taylor design and control of work style?
Taylor said that work has to be engineered so that management knows how long a task takes. However, new ideas include:
-- employee empowerment = he or she determines the pace or technique;
-- "smoothing over" adversarial relationships and disputes;
-- "positive reinforcement" is important in motivating workers = if a worker is praised, he will work efficiently.
-- flexibility and supportive atmosphere are also considered indispensable.