Your second case study involves Eastern Waves, a company that manufactures steel in Malaysia.

You are to read the case study thoroughly and then determine what you would do with the raw material and labor issues at Eastern Waves. Be sure to conduct research and provide references to support your explanation.

C V shift in D ctrl Case 16 KACI Products, Inc. COMPANY BACKGROUND The KACI Products Company is a manufacturer tight wall hand intended for convertit en product line chutes drill and $75 per Labor depending der of $1.000 her hand, a on sheet is et's pur needed -kers will nesting Also ng and lished st that nents it is and held nad gun anda berapy was powerw.dete development department that come tally watches for ways to imperating products as well as develop new products Currently, the research and development department is working on the deve opment of a portable workstation that will have a tin CAD-CAM though the technology involved is quite diferent. Tentatively named the Portable CAD, the product will in the for around STS and therdone, the target market consists of upper income baby boomers who are interested in staying busy At this price, profits will be attractive. Last month KACI rolled out a Wong totype and is satisfied that, with cooperation from the production and marketing departments, the product can be ready in time for the Christus buying on target diate that is 22 weeks away has been set for the product introduction CURRENT PROBLEM KACI Product Marketing Vice President, Simone Spruell, has recently learned from the company's marketing intelligence consultant that a competitor is also in the process of developing a similar product, which it intends to roll out for the Christmas buying season. In addition, the consultant also indicated that the com petitor plans to sell its product, which will be somewhat heavier than the Portable CAD for $499.95 in the hope of appealing to upper middle as well as upper income groups. Simone, with the help of several of her by people who are to be involved in marketing the Portable CAD, has decided that in order to compete. the selling price for the Portable CAD will have to be lowered to within 550 of the competitor's price. At this price level, it will still be profitable, although not nearly as profitable as originally anticipated However, Simone is wondering whether it would be possible to expedite the usual product introduction proces in order to beat the competition to the market en- is of If possible, she would like to get a six-week jump on the competition, this would put the product introduction date only 16 weeks away. During this initial period, KACI Products could sell the Portable CAD for $575, reducing the selling price to $550 when the competitor's product actually enters the market. Since forecasts based on market research show that sales during the first seven weeks will be about 2,000 per week, there is an opportunity for considerable extra profit if the early introduction can be accomplished. In addition, there is a certain amount of prestige involved in being first to market. This should help enhance the Portable CAD's image during the anticipated battle for market share. Names and datave been disguned. Copyright 2003 W. Benton It All rights reserved 503 C V shift in D ctrl Case 16 KACI Products, Inc. COMPANY BACKGROUND The KACI Products Company is a manufacturer tight wall hand intended for convertit en product line chutes drill and $75 per Labor depending der of $1.000 her hand, a on sheet is et's pur needed -kers will nesting Also ng and lished st that nents it is and held nad gun anda berapy was powerw.dete development department that come tally watches for ways to imperating products as well as develop new products Currently, the research and development department is working on the deve opment of a portable workstation that will have a tin CAD-CAM though the technology involved is quite diferent. Tentatively named the Portable CAD, the product will in the for around STS and therdone, the target market consists of upper income baby boomers who are interested in staying busy At this price, profits will be attractive. Last month KACI rolled out a Wong totype and is satisfied that, with cooperation from the production and marketing departments, the product can be ready in time for the Christus buying on target diate that is 22 weeks away has been set for the product introduction CURRENT PROBLEM KACI Product Marketing Vice President, Simone Spruell, has recently learned from the company's marketing intelligence consultant that a competitor is also in the process of developing a similar product, which it intends to roll out for the Christmas buying season. In addition, the consultant also indicated that the com petitor plans to sell its product, which will be somewhat heavier than the Portable CAD for $499.95 in the hope of appealing to upper middle as well as upper income groups. Simone, with the help of several of her by people who are to be involved in marketing the Portable CAD, has decided that in order to compete. the selling price for the Portable CAD will have to be lowered to within 550 of the competitor's price. At this price level, it will still be profitable, although not nearly as profitable as originally anticipated However, Simone is wondering whether it would be possible to expedite the usual product introduction proces in order to beat the competition to the market en- is of If possible, she would like to get a six-week jump on the competition, this would put the product introduction date only 16 weeks away. During this initial period, KACI Products could sell the Portable CAD for $575, reducing the selling price to $550 when the competitor's product actually enters the market. Since forecasts based on market research show that sales during the first seven weeks will be about 2,000 per week, there is an opportunity for considerable extra profit if the early introduction can be accomplished. In addition, there is a certain amount of prestige involved in being first to market. This should help enhance the Portable CAD's image during the anticipated battle for market share. Names and datave been disguned. Copyright 2003 W. Benton It All rights reserved 503