Question

You are the top manager of a start-up company that will produce innovative new flatscreen displays for pc makers like apple and hp .

The flat screen display market is highly competitive , so there is considerable pressure to reduce costs. Also, pc makers are demanding ever-higher quality and better features to please customers. In addition , they demand that delivery of your product meet theirs production schedule needs . Functional managers want your advice on how to best meet these requirements, especially because they are in the process of recruiting new workers and building a production facility.

Answer 1

I'd advise on the following points:

1. Do a thorough assessment on the different flat screen available in the market.

2. Quality is of importance. Their USP should be the innovative screen, best quality and competitive price. Hence they shouldn't compromise on product quality to reduce cost.

3. At an operation level they should try to go for partial automation (complete automation is a lot of capital cost affecting the product cost).

4. Minimize the waste to reduce the unnecessary cost addition to the product.

5. Negotiate less on cost and more on marketing. You can invest more in marketing your product. Lesser burden on the retailer will be beneficial for you.

6. Hiring process is most crucial. You don't want to add unnecessary and ineffective manpower in your.team. Since they are creating a new production facility. Select those people who have worked in earlier in such projects.