Reference no: EM131410709
Two manufacturers currently are competing for sales in two different but equally profitable product lines. In both cases the sales volume for manufacturer 2 is three times as large as that for manufacturer 1. Because of a recent technological breakthrough, both manufacturers will be making a major improvement in both products. However, they are uncertain as to what development and marketing strategy to follow.
If both product improvements are developed simultaneously, either manufacturer can have them ready for sale in 12 months. Another alternative is to have a "crash program" to develop only one product first to try to get it marketed ahead of the competition.
By doing this, manufacturer 2 could have one product ready for sale in 9 months, whereas manufacturer 1 would require 10 months (because of previous commitments for its production facilities).
For either manufacturer, the second product could then be ready for sale in an additional 9 months.
For either product line, if both manufacturers market their improved models simultaneously, it is estimated that manufacturer 1 would increase its share of the total future sales of this product by 8 percent of the total (from 25 to 33 percent). Similarly, manufacturer1 would increase its share by 20, 30, and 40 percent of the total if it marketed the product sooner than manufacturer 2 by 2, 6, and 8 months, respectively. On the other hand, manufacturer 1 would lose 4, 10, 12, and 14 percent of the total if manufacturer 2 marketed it sooner by 1, 3, 7, and 10 months, respectively.
Formulate this problem as a two-person, zero-sum game, and then determine which strategy the respective manufacturers should use according to the minimax criterion.
Discuss the differences between ifrs and u.s. gaap
: Discuss the differences between IFRS and U.S. GAAP with respect to long-lived asset accounting, and comment on how these differences could lead to the adjustments for development costs and impairments reported by Nokia.
|
Important skill for managers and leaders
: You will learn about team building and why it is an important skill for managers and leaders - Identify two groups you belong to or have belonged to; the groups can be personal or work-related.
|
List five functions of hydraulic fluids
: 1) List five functions of hydraulic fluids. 2) How much can petroleum-based fluids compress at 3,000 psi? 3) Define lubricity of a fluid.
|
Develop an agenda for the meeting
: Identify the positive, effective qualities of the meeting in one list, and identify the qualities which were ineffective in a separate list - Arrange each list from top to bottom, from most important to least important.
|
Formulate given problem as a two person zero sum game
: Formulate this problem as a two-person, zero-sum game, and then determine which strategy the respective manufacturers should use according to the minimax criterion.
|
Compute the cash received by southwest
: Explain why Southwest does not recognize revenue when it receives the payment from its customers.
|
Calculate the voltage across
: Three capacitors (3.94, 5.98, and 12.0 μF) are connected in series across a 49.0 V battery. Calculate the voltage across the 3.94 μF capacitor.
|
Write a senior project summary paper
: Provide a description of your selected topic (i.e., health care trend) and a thesis statement. Identify the organization that you have chosen to address, including why the issue of your selected topic is important to the health care administrators..
|
Compute the amount in the bonus pool
: Briefly describe why a company would institute a bonus plan, and compute the amount in the bonus pool if Jordan Brothers shows net income of $300,000. Prepare the journal entry that would be recorded to reflect the bonus liability at the end of th..
|