QuestionQuestion

The Situation Analysis has five areas: Perceptual Map, Demand Analysis, Capacity Analysis, Margin Analysis and Consumer Report. Overall, the Situation Analysis will give you an idea of where the market currently stands and where it will go.
1. On the Perceptual Map, all segments drift to the lower right. Which segment drifts at the fastest rate? Which drifts at the slowest?
2. Each Segment’s Ideal Spot shows the buyer’s preferred coordinates within the circle. Why is the High End Ideal Spot to the lower right of the segment center? Why is the Low End Ideal Spot to the upper left of the Low End segment center?
3. On a unit demand basis, the Performance Segment is growing at the fastest rate, 19.8% each year. In which round will demand for Performance products exceed the demand for Size products?
4. Explain how increasing First Shift Capacity can reduce per unit labor costs.
5. Automation reduces per unit labor costs but it has two disadvantages. What are these?
6. A product’s margin is determined by subtracting its manufacturing costs (labor and material) from its price. Logically, higher prices and lower labor and material costs result in higher margins. Keeping in mind the Customer Buying Criteria, how would you increase margins for a Low End product? How would you increase margins for a High End product? Hint: The criteria can be found in the Capstone Courier Market Segment Analyses.
7. The Consumer Report indicates how customers perceive your product offerings. For example, Reliability (MTBF) is very important to Performance customers. What is the current MTBF for your Performance product? Given the desired range for Performance customers (found in the Buying Criteria) how many hours would it need to be raised to receive an "A" on the Consumer Report?
Your paper is to be written in 6th edition APA formatting, and should be no less than 4-6 pages in length (excluding cover and reference page). Also you should use at least 2 academic references to support your analysis and critical thinking.

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- Each Segment’s Ideal Spot shows the buyer’s preferred coordinates within the circle. Why is the High End Ideal Spot to the lower right of the segment center? Why is the Low End Ideal Spot to the upper left of the Low End segment center?
The differences in the ideal spots for the High End and Low End segments within the circle are primarily due to the differences in consumer preferences. Each of these segments have their own consumers and their characteristics differ significantly. For example, the Low End ideal spot is to the upper left of the Low End segment center because consumers in this segment prefer low prices and are prepared to forego size and performance as long as the price is low. In comparison, consumers in the High End segment desire products developed with new technology making them better in terms of performance. Additionally, consumer is the High End segment are more receptive to paying a premium price to get the products they desire that is why the High End ideal spot is to the lower right of the segment center.
- On a unit demand basis, the Performance Segment is growing at the fastest rate, 19.8% each year. In which round will demand for Performance products exceed the demand for Size products?
If the Performance segment continues to grow constantly at the current rate of 19.8% annually, then the demand for products in this segment will exceed the demand for products in the Size segment in...

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