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Corporation X has two product lines in the broader consumer electronics industry. Its first product line consists of a range of high-end electric kettles to
Corporation X has two product lines in the broader consumer electronics industry. Its first product line consists of a range of high-end electric kettles to which the firm added a range of additional and unique features, including the ability to heat the water to set temperature even below its boiling point, to turn the kettle on and off through Blue Tooth and Amazon Alexa, to use a slower, more energy-efficient mode, and to preprogram its heating operations and develop preferred user modes. This product line has current annual sales of $200 million and is growing by 5% annually. The firm controls the entire process of product development, design, and manufacturing internally, but contracts with logistics firms for transportation and with retailers for distribution. Whereas manufacturing all takes place in East Asia, the sales of the kettles are evenly distributed over North America and Europe. The company produces these kettles in various sizes, various colors, and various materials, but the key functionality is similar for all. Though the functionality is the same everyone, the American and European versions of the product are slightly different because of different standards (voltage of the electricity supply, shape of the plugs and sockets) and different safety requirements. The second product line is a series of high-end toasters. Similar to the electric kettles, Corporation X aimed to improve the toasters by increasing their functions: toasting at different temperatures, for different durations, and at different sides. This allows the bread to be more evenly toasted and more deeply toasted. The toasters are nicely designed and have a small touch display to change all settings. Alternatively, users can download the firm's app on their phone that connects over Blue Tooth and choose the settings that way. With annual sales of just $50 million, this product line is smaller in size but growing at a faster rate (15% last year). The entire process of development, design, and manufacturing are internally. For distribution, the firm uses online and offline retailers and all sales are located in North America. Question 1: given the firm's business, corporate, and international strategy, how should the firm R&D strategy and structure look like? Answer this question in a short essay (up to 500 words). Question 2: how should the firm set up its international R&D structure? Answer this question in a short essay (up to 500 words)
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