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You have just been hired as manager of the marketing department for a medium-size manufacturing company. On day one, you have a meeting with the
You have just been hired as manager of the marketing department for a medium-size manufacturing company. On day one, you have a meeting with the management team of the company. The executives have assured you that the company is doing quite well, and they have supplied you with sales figures for the past five years which, in fact, have been steadiljy increasing Your first task for the company is to analyze the information and make recommendations. You are given the following data: Annual Sales (in thousands of U.S. Dollars) 2015 Product Profit Margin $120,000 $120,000 $96,000 80,000 56,000 N/A 160,000 $416,000 $456,000 $512,000 $568,000 $640,000 10% 6% 104,000 80,000 N/A 152,000 136,000 104,000 N/A 176,000 $80,000 176,000 144,000 56,000 112,000 $40,000 240,000 160,000 120,000 80,000 10% 9% Total The new product, Product D, was introduced in 2016. All of the products, A, B, C, D, and E, are related. Questions 1. Over the five-year period, how has the company done in sales and in profits? Why have these changes occurred? What has been the impact of introducing the new product D? What recommendations would you make (ie., hold, invest, discontinue)? 2. 3. HOLD | INVEST | DISCONTINUE
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