Nike
ASSIGNMENT ONE – INDIVIDUAL
1. Challenges for business can come from internal and/or external pressures. Explain two such pressures affecting the current situation of T-Sole Ltd.(4 points )
ANSWER
Internal pressure:
The incentive policy with piece rate causes qualified workers to produced more and the new employee without adequate training started the work and this lead to poor quality production and lot of the footwear produced were rejected.
The breaking down of equipment from time to time which lead additional cost.
For survival of the company, majority of workers become jobless and this lead lack of Job security on existing employees.
Sales drop and branding un-stability lead to financial un-stability. External pressure;
The economy of company decreased due to demand decreased and sales drop down because of poor quality production.
The shareholders idea on investing casual footwear and granting wage for employees
2. Explain the stages in the product life cycle of the MDs footwear brand and state which stage it is now at.(8 points )
ANSWER The product life cycle has four defined stages and characteristics i.e. introduction, growth, maturity and decline.
i) Introduction Stage
Any business that is launching a new product needs to appreciate that this initial stage could require significant investment. This isn’t to say that spending a lot of money at this stage will guarantee the product’s success. Any investment in research and new product development has to be weighed up against the likely return from the new product, and an effective marketing plan will need to be developed, in order to give the new product the best chance of achieving this return. ii) Growth Stage
This is the key stage for establishing a product’s position in a market, increasing sales, and improving profit margins. This is achieved by the continued development of consumer demand through the use of marketing and promotional activity, combined
1. Challenges for business can come from internal and/or external pressures. Explain two such pressures affecting the current situation of T-Sole Ltd.(4 points )
ANSWER
Internal pressure:
The incentive policy with piece rate causes qualified workers to produced more and the new employee without adequate training started the work and this lead to poor quality production and lot of the footwear produced were rejected.
The breaking down of equipment from time to time which lead additional cost.
For survival of the company, majority of workers become jobless and this lead lack of Job security on existing employees.
Sales drop and branding un-stability lead to financial un-stability. External pressure;
The economy of company decreased due to demand decreased and sales drop down because of poor quality production.
The shareholders idea on investing casual footwear and granting wage for employees
2. Explain the stages in the product life cycle of the MDs footwear brand and state which stage it is now at.(8 points )
ANSWER The product life cycle has four defined stages and characteristics i.e. introduction, growth, maturity and decline.
i) Introduction Stage
Any business that is launching a new product needs to appreciate that this initial stage could require significant investment. This isn’t to say that spending a lot of money at this stage will guarantee the product’s success. Any investment in research and new product development has to be weighed up against the likely return from the new product, and an effective marketing plan will need to be developed, in order to give the new product the best chance of achieving this return. ii) Growth Stage
This is the key stage for establishing a product’s position in a market, increasing sales, and improving profit margins. This is achieved by the continued development of consumer demand through the use of marketing and promotional activity, combined