Eve Celebration. You Finished Analyzing Performance Tablet

¶ … Eve celebration. You finished analyzing performance Tablet Development a great report turned a days early Sally Smothers. At the new beginning of 2012, decisions are made at three specific levels: Research and development allocations Product pricing, and Potential product discontinuation. The advantage at this stage is that the future evolution of the market is already known and safer decisions can be made.

In such a context then, the main decisions include the following: The increase in the funds allocated to research and development The maintenance of the product pricing The maintenance of all three tablets -- the X5, the X6 and the X7 market tablets. In the traditional scenario, the decisions regarding these three issues were taken differently.

In this order of ideas: Research and development funds were reduced as they represented a too large portion of the overall organizational costs The prices of the products were increased in order to cover for the amounting costs which were incurred in the manufacturing and distribution of the tablets The third tablet of the Clipboard Tablet Company -- the X7 market tablet -- was discontinued as it generated losses. In 2011 for instance, the X7 tablet did not generate any revenues, but total losses in the amount of $22,254,435.

These decisions seemed pertinent the first time around in 2012 and they were based on pure internal issues. Nevertheless, the evolution of the IT&C market and industry has revealed that the external forces must also be taken into consideration when making organizational decisions (Lindsay, Perkins and Karanjikar, 2009). In this order of ideas, the decisions regarding research and development, pricing and product discontinuation would be readdressed hereby. The following lines integrate the rationale for adjusting the three categories of decisions.

a) Research and development R&D is indeed the most expensive part of production and the reduction of these costs could materialize in cost efficiencies. Still, these gains would only be applicable within the short-term, and on the long run, the company would suffer losses. Research and development is responsible for product development, improvement, functionality, usability, quality and all of the other elements which ensure customer demand and satisfaction as well product competitiveness within the market.

R&D is as such not only essential for current survival, but it is a guarantee of future competitiveness. Based on this realization then, the decision at this stage would be that of further investing in research and development. b) Product pricing The first time around in 2012, prices were increased in order to cover for the costs. At this stage however, retail prices would be maintained at the same level in order to consolidate the customer base (Schwartz, 2008).

2012 and 2013 would be difficult years from the standpoint of profitability, with increases as low as 7, respectively 9 per cent, but starting with 2014, the investments would begin to return. In 2013 then, as the customers would be more and more drawn to the products, the retail prices would be slightly incremented. c) Product discontinuation The initial decision to discontinue the manufacturing of the X7 market tablet was based on the logics that the product was creating financial losses for the firm.

As it has been previously mentioned, in 2011 alone the X7 table cost the Clipboard Tablet Company over $22 million. Still, this product would not, at this stage, be discontinued and this is due to the fact that it represents the sole organizational product able to simultaneously meet the conditions for price accessibility as well as performance requirements. In other words, the X7 is the organizational gadget best able to create an efficient report between price and quality. In most cases, this report is searched by the buyers.

Still, at the beginning of 2012, the X7 market tablet is only able to create this report at a theoretical level, with the practical results of the product within the market having been disastrous, and constituting as such grounds for discontinuation. Nevertheless, with additional investments in research and development, the Clipboard Tablet Company should be able to improve the X7 tablet to a point at which it is sold at an accessible price and integrates high quality, to as such attract customers from various categories, such as IT aficionados.