Question

Managerial Economics & Organizational Architecture (6th Edition)

Chapter 22, Problem 5AMD2

5. Suppose the packaging redesign and retooling required a longer time period, extensive cost, and that all Tylenol products were affected- not just capsule. Might McNeil managers have taken a different set of actions and how might the credo have guided these decisions?

Answer 1

Given the altering occurrence just influenced cases and not all Tylenol products and the repackaging design rushed to actualize gave McNeil directors greater adaptability .Existing workers could be doled out to deferred upkeep ventures , moved to delivering different products , use excursion time ,, etc . These redeployment choices are a lot simpler and less expensive to the investors than if the retooling time for the new bundling is a couple of months .

In the event that retooling took quite a while , or if all Tylenol products were influenced , the executives would need to settle on harder choices sooner or later of postponement or degree of other Tylenol products being influenced , the board would need to consider more enthusiastically decisions, for example, work leaves of absence , constrained cutbacks or plant closings.