Survey the room

Seeing the Big Picture

Can you recognize and address stakeholder concerns?

Richard is a product manager at Wilmont Brothers, a furniture company. He has decided that a good strategy for the company would be to move into the high-end furniture market. He arranges a meeting of major stakeholders to see what they think of this idea.

Marketing Director: I like the idea! It will allow us to position ourselves as modern and contemporary. I might recommend a mid-range product line as well for people who want style but can't afford a premium product.

Chief Operating Officer: Interesting idea. I'm worried, though, that we may have to invest in new infrastructure in our factories to produce the new product lines.

Vice President of Sales: I've been pushing our current product successfully for years. It may be a tough sell to get retailers to stock a considerably more expensive product line.

Chief Financial Officer: Sounds promising. But how much will it cost to get these designers on board? And what do you expect in terms of revenue?

How should Richard respond to his stakeholders' concerns?

Move forward with a more detailed plan outlining expected costs and revenues

Correct choice. While most stakeholders seem to agree that there is merit in this plan, there are several concerns revolving around the costs associated with conceptualizing, producing, and distributing these new furniture pieces. Richard should address these concerns by providing more detailed cost and revenue projections.

Minimize retailers' costs of supporting a new product line by applying additional marketing resources

Not the best choice. While the concerns voiced by the Sales Department may be addressed with the support of the Marketing Department, this does not address the valid concerns of the Chief Operating Officer and Chief Financial Officer.

Hire designers to create new product lines for both high-end and mid-range customers, with some restrictions on designs to minimize infrastructure modifications

Not the best choice. Most stakeholders are intrigued by Richard's plan to introduce designer furniture. However the concerns the Chief Operating Officer and Chief Financial Officer voiced around whether the costs involved can be balanced by additional revenues need to be addressed through additional analysis before Richard can move forward with a plan.

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