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Proposal to Shift Focus from One Product to Another in a Company
The new proposal by marketing team to shift focus to offering products that are niche in nature by virtue of requirement of customization that each products needs and hence volume for such business is quite low but due to its this characteristics it offers lucrative margins for companies who believe in offering high quality & precision products requiring more focus by the team involved. The company is looking for this strategic shift since it is well aware that it's production process don't allow it to compete with vertically integrated giants and reengineering the production process would be big gamble and that too losing at the cost of having production process that can be put to use in speciality segment which they have been serving since long and have established god equity in markets. Only a detailed examination and simulation of production process will reveal future possibility for company and cost involved in such transformation in focus.
Stock out cost means the cost associated with not serving the customers. Stock outs imply shortages. If the stock out is internal ( that is in the production system) it woul
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Breakdown of what MBO is all about
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