MGS3100HW1 - 7. Worker recruitment and training...

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1. Cost of production facility-Relevant, if the cost of the facility is low, then they will be less likely to abandon the product, and vice-versa. 2. Cost of Manufacturing Equipment-Relevant, same as above. 3. Corporate Overhead allocation-Relevant, if they have low corp. overhead because the facility is mostly automated then again they will be less likely to abandon product, and vice-versa. 4. Price structure for the product-Irrelevant, profit matters, however the pricing structure has nothing to do with what sales will be. 5. Cost of Raw Materials-Relevant, if the raw materials are cheap then they are less likely to abandon. 6. BUGs investment in R&D for critter-Relevant, if they have invested a lot into Critter then they do not want to abandon it and lose the money.
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Unformatted text preview: 7. Worker recruitment and training costs-Relevant, if the cost of training is high, then they will be more likely to abandon product. 8. Demand forecasts for critter-Relevant, if the product has high demand, then you will be less likely to abandon. 9. Your salary-Irrelevant, the CEO's salary is not going to change regardless of the product making production. 10. Sales commissions-Irrelevant, comissions paid or received do not affect if the product will be produced or not, as there is always other products. 11. Distribution costs-Relevant, if dist. costs are high then you are more likely to abandon the product. 12. Cost of BUG institutional advertising-Irrelevant, you have to spend money advertising your company regardless if Critter makes it or not....
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This note was uploaded on 03/24/2008 for the course MGS 3100 taught by Professor Wong during the Spring '08 term at University of Georgia Athens.

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