Write a paper on The Revised Strategic Plan (The outline)
The Revised Strategic Plan (The Outline)
Length: 2 pages (550 Words)
The Revised Strategic Plan (The outline)
Knife Technology Inc. should consider outsourcing the production of its hardware SBU to Borealis region with the aim being to decrease the costs associated with production of the product and consequently make it possible to reduce the price of the product. Production of the product should be outsourced to Borealis because of low production costs, low inflation rates meaning low labor costs and relatively lower barriers to entry. With the lower production costs earned by the decision to outsource production to Borealis, the company should now reduce the price of its hardware from $500 to about $450 with the goal being to make it more affordable. Research and development costs on the hardware SBU should also be increased to $75,000 the objective being to come up with more affordable hardware components through research. In terms of export of the hardware SBU, knife technology Inc. should consider Ceres as its first export destination since the region is highly sensitive to price. The reduced price of the product will therefore increase sales in this region.
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