Follow james hamiltons strategy

Assignment Help Operation Management

Reference no: EM131729096

Two managers, James Hamilton and Thomas Seymour, had the following discussion of ways to increase the profitability of this new offering:

James: I think we need to think of some way to increase our profitability. Do you have any ideas?

Thomas: Well, I think the best strategy would be to become aggressive on price.

James: How aggressive?

Thomas: If we drop the price to $60 per unit and maintain our advertising budget at $15,000,000, I think we will generate total sales of 2,000,000 units.

James: I think that is the wrong way to go. You are giving too much up on price. Instead, I think we need to follow an aggressive advertising strategy.

Thomas: How aggressive?

James: If we increase our advertising to a total of $25,000,000, we should be able to increase sales volume to 1,400,000 units without any change in price.

Thomas: I do not think that's reasonable. We will never cover the increased advertising costs.

Which strategy is best: Do nothing? Follow the advice of Thomas Seymour? Or follow James Hamiltons strategy? Explain your position.

Reference no: EM131729096

Questions Cloud

Explain how the concept of secondary meaning serves : Explain how the concept of "secondary meaning" serves as a substitute for distinctiveness in trademark law.

Define the term inflation : Define the term “inflation”, and explain how it affects your quality of life. What can be done to control inflation?

Supply professionals need to be aware of applicable law : Supply professionals need to be aware of applicable law and regulations which include all of the following except Please provide your answer in rich text box.

Discuss the family and medical leave act : Discuss the Family and Medical Leave Act of 1993 and the Patient Protection and Affordable Care Act of 2010.

Follow james hamiltons strategy : Which strategy is best: Do nothing? Follow the advice of Thomas Seymour? Or follow James Hamiltons strategy? Explain your position.

Relationship between employees and the corporation : Describe the relationship between employees and the corporation and managing a diverse workforce.

Two theories available to plaintiffs to demonstrate : What are the two theories available to plaintiffs to demonstrate that a product is unreasonably dangerous?

Define civics in your own word : Define “civics" in your own words, include at least 3 references of the definition.

Support an employee-centered environment at google : Assess the effectiveness of HRM systems and practices implemented to support an employee-centered environment at google.

User Account

All Pages