Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to market in early 2012, the production manager of the newly formed automobile division insisted on almost a year of trial runs before sales started because workers have to do their jobs 60 to 100 times before they can memorize the right sequence. The launch date was set for early 2013. What are the consequences of using this approach to enter the market with a new product?

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Business

Gunner Reed

23 November, 19:57

Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to market in early 2012, the production manager of the newly formed automobile division insisted on almost a year of trial runs before sales started because workers have to do their jobs 60 to 100 times before they can memorize the right sequence. The launch date was set for early 2013. What are the consequences of using this approach to enter the market with a new product?

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Tara · Answer 1

Polish General Corporation is a new player in automobile production, their background for manufacturing automobile parts is an advantage as they can insource for parts.

The approach of giving ample time for trials is a good one. It will be a competitive advantage for the company if their products are synonymous with quality.

Their first product in the automobile market place should set a standard on which the company can build a long lasting brand.

So the decision by the manager to prolong trials is a wise one. The employees will also have mastered the process at the end of this period, having practices 60 - 100 times. Based on the expertise learnt products produced in the future will also have high quality.