Executive Summary
...any business. Businesses that participate in cutting edge technology create more opportunities for themselves and for their customers. Leading in technology with quality products not only provides excess revenue, but also a retainment of customers. Ten years ago this company, AcuScan, Inc., led the market with the launch of its cutting-edge retinal security product, the iScanner. Today, the iScanner claims only 40% of the market and AcuScan finds it struggling within the competitive market.
Due to a tremendous cost-cutting sacrifice of 500 employees, and a revamping of the supply chains management system, ultimately cutting costs by almost 15%, AcuScan’s project revenues continue to fall in the current economy. Revenues from sales/service are declining as well with a current sales/service ratio of 50/50 and a projected decrease of 30%, leaving service to account for an estimated 70% of revenues during the remaining fiscal year. Because of this steady decline, AcuScan must reduce their budget by 15% across the board, excluding Sales and Marketing. In addition to AcuScan needing to reduce the budget, the company is also attempting to produce a high quality product with significant time restraints. Both plans are required for AcuScan to not only remain a competitor within the market, but also to become the cutting-edge leader in technology once again.
Two significant issues/problems exist with AcuScan’s plans of reducing the budget along with attempts to launch a new product in such a short period of time. The first problem being a lack of capital, and the second problem is the lack of time. The competition has already begun to diversify, starting work on new products and AcuScan is struggling to catch up. The problem is that this project will cost AcuScan a significant amount of money, and there is not enough coming in to finance the projected product....
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