Infinity & Beyond, Inc. is a producer of high-tech fashion merchandise. The company's marketing department has...

 

Transcribed Image Text:

Infinity & Beyond, Inc. is a producer of high-tech fashion merchandise. The company's marketing department has identified a new product concept through discussions with potential customers conducted in three focus groups. The marketing department is excited about the new "concept" and presents it to top management who gives the approval for further study. Lisa Denney, senior director of the new product and website devel- opment, is asked to create a plan and cost break- down for the development, manufacture, and distribution of the product. Despite the enthu- siasm of top management and the marketing department, Lisa is unsure about the product's market potential and the company's ability to develop it at a reasonable cost. To Lisa's way of thinking, the market seems ill-defined, the prod- uct goals unclear, and the product and its pro- duction technology uncertain. Lisa asks her chief designer to create some product requirements and a rough design that would meet the require- ments and marketing concept, and to propose how the product might be manufactured and marketed. After a few weeks the designer reports back with requirements that seem to satisfy the marketing concept. She tells Lisa that because of the newness QUESTIONS 1. Discuss the major sources of risk in this project. 2. What do you think about Lisa's handling of the project so far? If you were her, what would you have done differently? of the technology and the complexity of the product design, the company does not have the experience to develop the product on its own, let alone manu- facture it. Lisa checks out several design/devel- opment firms, asking one, Margo-Spinner Works Company, MSW, to review the product concept. MSW assures Lisa that although the technology is new to them, it is well within their capability. Lisa reports everything to top management who tells her to ignore any misgivings and go ahead with the development. Lisa sets a fixed-price contract with MSW and gives them primary responsibility for the entire development offer. MSW management had argued for a cost-plus contract, but when Lisa stipulated that the agreement had to be fixed- price, MSW said okay, only under the condition that it be given complete control of the develop- ment work. Lisa, who has never worked with MSW, feels uncomfortable with the proposition, but knows of no other design company qualified. to do the work, so she agrees. Several people from Infinity & Beyond, Inc. will be assigned to work at MSW during the development effort, and during that time will determine whether Infinity & Beyond, Inc. has the capability to make the prod- uct or must outsource its production. 3. Discuss the handling of stages of the project- product concept, definition, development, and production and what Lisa and other parties did that served to increase or decrease the risks. Infinity & Beyond, Inc. is a producer of high-tech fashion merchandise. The company's marketing department has identified a new product concept through discussions with potential customers conducted in three focus groups. The marketing department is excited about the new "concept" and presents it to top management who gives the approval for further study. Lisa Denney, senior director of the new product and website devel- opment, is asked to create a plan and cost break- down for the development, manufacture, and distribution of the product. Despite the enthu- siasm of top management and the marketing department, Lisa is unsure about the product's market potential and the company's ability to develop it at a reasonable cost. To Lisa's way of thinking, the market seems ill-defined, the prod- uct goals unclear, and the product and its pro- duction technology uncertain. Lisa asks her chief designer to create some product requirements and a rough design that would meet the require- ments and marketing concept, and to propose how the product might be manufactured and marketed. After a few weeks the designer reports back with requirements that seem to satisfy the marketing concept. She tells Lisa that because of the newness QUESTIONS 1. Discuss the major sources of risk in this project. 2. What do you think about Lisa's handling of the project so far? If you were her, what would you have done differently? of the technology and the complexity of the product design, the company does not have the experience to develop the product on its own, let alone manu- facture it. Lisa checks out several design/devel- opment firms, asking one, Margo-Spinner Works Company, MSW, to review the product concept. MSW assures Lisa that although the technology is new to them, it is well within their capability. Lisa reports everything to top management who tells her to ignore any misgivings and go ahead with the development. Lisa sets a fixed-price contract with MSW and gives them primary responsibility for the entire development offer. MSW management had argued for a cost-plus contract, but when Lisa stipulated that the agreement had to be fixed- price, MSW said okay, only under the condition that it be given complete control of the develop- ment work. Lisa, who has never worked with MSW, feels uncomfortable with the proposition, but knows of no other design company qualified. to do the work, so she agrees. Several people from Infinity & Beyond, Inc. will be assigned to work at MSW during the development effort, and during that time will determine whether Infinity & Beyond, Inc. has the capability to make the prod- uct or must outsource its production. 3. Discuss the handling of stages of the project- product concept, definition, development, and production and what Lisa and other parties did that served to increase or decrease the risks.

Answer rating: 100% (QA)

1 The product development is only one set of issues to be addressed in this project The other bigger ... View the full answer