Debrief Rounds 2 and 3
Part A
Based on the undertakings in Round 2 and 3, one apparent issue is about the choice of the product that significantly impacted on the inventory. My investment was mostly on achieving the highest number of products within a specified period, prompting me to even use an emergency loan. However, based on the result in the inventory that highlights unsold products, I could have taken into account the role played by the market. With the correct market analysis, I could have established the demand for the products and came out with sufficient supply volume, which matches the demand. Again, the market share still remains optimum. The main aim of the production was to achieve a market share that is proportionate to the number of goods produced. However, with a market share of below 10 percent, there is a need to sell the remaining products at an optimum cost to clear the inventory and effectively achieve sustainable growth and improve the market share. The other lesson learned is that emergency loans should not be used in production but on unforeseen costs that relate to production, such as increased demand that the supply cannot effectively achieve. Such instance will guarantee effective use of the loan and save me from the negative balance with less working capital.
Part B
Student 1
Hello Kathryn. The introduction of a new product in the market needs a little strategy and research. I believe that that you needed to understand the consumer trends and analyzed the risk involved. As a result, you could have gradually introduced the new product in the market after testing its first performance. Again, just as I have discovered, in using loans, one needs to use such loans in stimulating the growth of the already existing product, especially on instances where the demand of the product supersedes the supply.
Student 2
Hello Juris. Though investment in production, employees, and marketing is essential for you to maintain a definite share in the market, you need to cut operation costs. For example, currently, your customers have known your products and the quality associated with them. Therefore, you need to reduce the amount you spend on advertisement. In that regard, you can reintroduce the ad at a later date, or you can do it sporadically. Thus, the money you could have used in the advertisement would be reinvested in production to increase your working capital and market share.