Question

Prepare a​ product-by-value analysis for the following​ products, and given the position in its life​ cycle, identify the issues likely to confront the operations​manager, and his or her possible actions. Product Alpha has annual sales of 2,000 units and a contribution of $2,000 per​ unit; it is in the introductory stage. Product Bravo has annual sales of 1,500 units and a contribution of $3,500 per​ unit; it is in the growth stage. Product Charlie has annual sales of 3,500 units and a contribution of$1,500per​ unit; it is in the decline stage

Product Individiual Dollar Contribution Total Annual Dollar Contribution

Bravo

Alpha

Charlie

Answer 1

Product	Inividual dollar contribution	Annual dollar value contribution
Bravo	3500	5250000
Alpha	2000	4000000
Charlie	1500	5250000

The operations manager needs to take following decisions

(a) The Alpha has encouraging sales, given its position in the marketplace. Besides increasing the marketing and sales efforts to strengthen its position in market, the company should try to reduce the cost of its manufacturing and increase the contribution level by use of research and development efforts.

(b) For Bravo, which is in growth stage, the sales and marketing efforts should be increased to make it command greater share of market along with augmenting the capacity of production.

(c) For Charlie, the periodic modification and relaunch will help to retain its sales for longer time in the market and at steady level of contribution, before it loses sales and is terminated.