Case Study

Kamal, the President of International Machine Corporation is satisfied with the success of his

company, which produces and distributes a line of farm machinery. That afternoon, at a meeting of distributors from various parts of the world, Mr. Kamal had been urged to introduce the new models of products to satisfy the changing demands of customers. The President being an engineer recognizes the implications of distributor's suggestion. It would require greater investments in R & D to introduce new products. Furthermore, the changes in the highly automated production line would be very costly for improving the product. Also having a greater variety of models require stocking many more spare parts. Depending on the changes, the mechanics also need to be retrained. Reflecting on the previous staff meetings, the President realized that sales and marketing team always wanted a greater variety of models but never acknowledged the costs involved in changing models. After-all, the Co had been extremely successful with just few models. Consequently, the President decided against the introduction of new models. Instead, he considered improving the current models and reducing the cost and price. He felt that the customer really wants the Value.

You are required to identify the Objective and the alternatives to fulfill the objective.