New product development and product innovation charter Essay

New product development and product innovation charter - Essay Example Therefore, a white product manufacturing company must understand that technological advancements are the key to success in the market (Avlonitis & Papastathopoulou, 2006). 1. a) Product innovation charter entails product planning and strategizing prior to its development. PIC charter summarizes all the necessary tools that a company’s development team should draft to come up with new products. The charter ensures that a product developed under it targets to achieving the company’s goals and objectives. Thus, the specialists must abide to PIC if they target to ensure their development is for the best of the company once it is in the market. It enables the team to set the product’s objectives in accordance to sales forecasts. A product will product will be of critical importance to a company if only it will draw positive attention from the consumer markets, as this is the only way of improving sales margins (Annacchino 2007). Similarly, sales should be profitable t o the company at the long run as far as the company is a profit making organization. Further, a significant development is that which enables a company acquire a higher market share relative to its previous one. Managers and product developers should focus on improving the market share competently and profitably (Avlonitis & Papastathopoulou, 2006). b) Every company has a mission and vision in its business field. Therefore, to come up with the best results of every innovation, the team should consider the goals and objectives of the company. For example, if a company’s mission is to enhance economic growth and customer satisfaction, the new product should entice the consumer to feel closer to the company and on deriving satisfaction from his purchase, will mean profitability to the business. Since perfect market competition is a rare case, a brilliant innovation will enable the company to grow in the market and undermine competitive threats. Eventually, a company shall pose a positive image to the society and other business affiliates if only the charter refines its image through healthy innovations (Karniel & Reich, 2011). c) The challenges that come with every innovation are as well overwhelming. Managers should understand that product charters only reveal prospects and not certainty. The criterion often tends to control development teams to operate within distinct procedures. Therefore, the team may develop a product that suits specific needs. This results to reduction of sales prospects, profitability, and market segment. The company finds realizes to be loosing worth an investment to a nonperforming product. It is advisable that companies should endure on practicing the best details a product innovation charter can offer in relation to the company’s goals and objectives (Karniel & Reich, 2011). 2. a) The key factors to that influence companies to concentrate in new product development programs are diverse. Companies find that all markets pos e competition and to ensure co-existence they must come up with products that place them above per. Other companies seek to maximize profits and after careful revision of the products that they already offer in the market, they realize the need of a new product that will profitably benefit the company in its operations. Companies notice that, whenever new products hit the target market profitably economies of scale reflect positively, and the rate of growth draws a positive view from their affiliates (Avlonitis&

Finance Theories Essay Example | Topics and Well Written Essays - 3000 words

Finance Theories - Essay Example Fosberg (2010, p.2) notes that the crisis began due to default on debt instruments and subprime mortgage loans supported by those loan types. However, it was not until 2007 that companies began realizing that the default on subprime mortgages was likely to cause a crisis on the financial sectors of the economy. This follows the discovery by Bear Stearns that realized that some of its assets, which were held by the subprime hedge funds, were slowly becoming valueless (Mizen 2008, p.15). However, the devastating effect of the subprime mortgage defaults on other markets were felt a year later in February 2008 following the subsidence of the auction rate security market. Fosberg (2010, p.2) notes that buyers failure to bid for the securities during a public auction resulted in an end to these securities market. However, the first major financial market collapses in March 2008 following the liquidation of Bear Stearns after going bankrupt. In the same year in September, another financial institution called Lehman Brothers also went bankrupt signaling a crisis. This prompted government intervention with the aim of forestalling further effects of the financial crisis on the financial market, which resulted in the passage of TARP Act (Fosberg 2010, p.2). The act soon became law in October 2008 as noted by Mizen (2008, p.15). However, the law did not help much in preventing the crisis from continuing biting the financial markets and institutions. In fact, many countries still suffer from the effects of this crisis which no sign of full recovery anytime soon. Some of the countries still suffering from the effects of this crisis include the U.K., the U.S. Greece and Turkey just to name but a few (Brigham and Ehrhardt 2002, p.12). In addition, the financial crisis also affected the issuance of sec urities in the market. What was also evident is that the financial crisis of the 2000s created a recession, which financial management experts expect to have also affected the