Acu San Case Study the Case Study

Excerpt from Case Study :

Arguments for the assumptions: Pat's and Chris's suggestion that the company develop new products and launch them onto different markets is based on the fact that the recent statistics received from the Marketing Department are unsatisfactory.

Evaluating the arguments: The unsatisfactory statistics received from the Marketing Department make a sound argument as the leading position of AcuSan on the market is being challenged by competitors' intense efforts to elaborate new strategies.

Another assumption made by the VP of Product Development is that the "Operation Optimize" plan would only require minimal costs. The argument behind this assumption is an unsound one as later on it has been proved that the operation would also require several additional costs that would raise significant financial difficulties for AcuSan.

1.2 the Conflict

The main responsible for the conflict in AcuSan is the new Marketing Director as she does not take into consideration her colleague's advice. She does not believe that the software department faces a time crisis as well as a personnel one and believes that Kelly Thomson denies her tasks out of personal grudge.

2. Conclusions

The main problems with AcuSan regard three different issues: insufficient financial support, reduced number of personnel and strict time limits.

As the incomes of the producer have decreased dramatically, the CEO was forced to reduce the company's budget through several means, the most important of which being staff reduction. This only led to another crisis: insufficient personnel to perform the work. Only within the software department, 25% of the employees have been let go.

In order to be the first ones to launch the new product on the market, AcuSan has to meet drastic deadlines, deadlines considered impossible by Chief Engineer of Product Software, Kelly Thomson. Therefore, the most sever problem of AcuSan is the software department's incapacity of processing the work they are being tasked with.

The most appropriate solution to the given problem would be that of contracting an external company to aid with the programming side of the new retinal scan product. Such an alternative would offer the advantages of increased human resources, experience and services offered from both employees as well as developers from outside the company. Probably the most convincing argument would be that of increasing AcuSan's chances of presenting the product on the market within the previously imposed time limits. Furthermore, contracting external developers could change the working environment at AcuSan, in the meaning of releasing the existing tension and replacing it with the possibility of learning new things and developing friendship relationships.

3. Executive Summary

AcuSan is a company acknowledged world wide for the high quality of their hi-tech products. Ten years ago, the producer launched their retinal scan device and soon became the leader on the adherent market. The problems started a few years ago when competitors began producing the similar product at lower costs and higher quality. Today, AcuSan encounters difficulties in maintaining their 40% position on the market and is faced with the sad prospect of loosing their leading title.

The purpose of the present document is to present the critical problems that AcuSan is facing, their causes and proposed solutions. The central issues were brought about by the intent to launch a new and improved version of the retinal scan device. In order to analyze and better comprehend the implications of such a project VP of Product Development Chris Martinas and Director of Marketing Pat Lambert developed a Progress Report on Operation Optimize. They stated that launching the product was only possible by respecting a strict deadline and requested budget cuts.

However great their enthusiasm seemed, it was not shared by Chief Engineer of Product Software, Kelly Thomson. He believed that his department possessed neither sufficient staff nor enough time to complete the project.

The main conflict brought about by the situation was between newly employed Pat Lambert and experienced Kelly Thomson, expert in the prior retinal scan product, who had major disagreements regarding the capabilities of the software department.

The most probable way to solve this problem would be to contract an external software company that would aid AcuSan with their programming crisis. This way, the producer would have better chances of launching the new product on the market within the specified…

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