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Group Exercises 15-1. Technology Is Changing the Face of Competition. Investments in leading edge technology can change the ability of a manufacturer to adjust to competition, and to meet the rapidly changing needs of its customers. Until recently, larger manufacturing concerns utilized a strategy based upon increased efficiency, large volumes of essentially similar products, continually lowering unit costs, and the greater economies of scale demanded by large markets. The high-margin niche markets were often left to the small manufacturers who could provide the quality of service thought to be demanded by these markets. The marketplace is now demanding greater variety and greater customization. To take advantage of the choices made available by leading edge advanced process technologies, managers must recognize the opportunities presented by these new technologies. Effective utilization will require a new way of thinking about markets and competition unrelated to the scale-based strategies of the past. Modern computer-based technologies make it possible to produce a variety of different products, in relatively small batches at a cost. which is competitive with the small manufacturers. Your group is asked to formulate how the new technologies can assist your firm in developing, producing, and marketing a new product in each of the following areas. Each person should select two of the following areas , and develop a plan for using the new technology. (An example of the approach is given for the first area.)
For an example of the uses of the new technologies confer the August 13, 1996 Wall Street Journal -- Industry Focus section. The article is titled -- Manufacturing Gets a New Craze From Softwood: Speed. 15-2. Politically popular government programs, such as environmental clean-up are often proposed , with little attempt to assess the benefits derived against the costs of the solution. Exercise Your group has been informed the Environmental Protection Agency ruled that emissions from automobiles in your area is excessive,and must be reduced. Your group is assigned the task of developing a program to reduce automobile emissions. Divide into two groups.
INTERNET EXERCISES 15-3. An excellent analysis of capital budgeting, Capital Budgeting For A New Dairy Facility, was assigned in Group Exercises -- Chapter 14. Review this material before starting this exercise. Also review that material on the website. The address is, http://hammock.ifas.ufl.edu/txt/authors/ds138. As noted the web-site has numerous links. The following questions are a continuation of the questions in chapter 14.
The article provides a sound analytical approach to capital budgeting for information technology expenditures . Information technology is important to the achieving of business goals. The article highlights the key investment criteria used to provide the framework for a sound decision in selecting information technology resources. You should answer the following questions after reviewing the material.
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