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Examine the impact of each of the following on the operations of one multinational company that you have studied: - The product life cycle - Developments in information technology. - Leaving Cert Geography - Question 7B - 2018
Question 7B
Examine the impact of each of the following on the operations of one multinational company that you have studied: - The product life cycle - Developments in informa... show full transcript
Worked Solution & Example Answer:Examine the impact of each of the following on the operations of one multinational company that you have studied: - The product life cycle - Developments in information technology. - Leaving Cert Geography - Question 7B - 2018
Step 1
The product life cycle
Answer
The product life cycle (PLC) is crucial for a multinational company's operations as it informs strategy across various phases: introduction, growth, maturity, and decline.
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Introduction Phase: During this phase, the company invests heavily in marketing and distribution to establish brand awareness. This may lead to higher operational costs as the company seeks to penetrate new markets.
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Growth Phase: As sales increase, the company may expand production and distribution capabilities. This can result in economies of scale, reducing per-unit costs, and enhancing profitability. The multinational might also explore new geographic markets during this phase.
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Maturity Phase: In this phase, competition intensifies. The company may need to innovate or differentiate its products to maintain market share. Operational adjustments may include streamlining production processes or reducing costs.
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Decline Phase: If the product is in decline, the company must decide whether to discontinue the product or attempt to revitalize it. Cost-cutting measures may impact operations significantly during this period, affecting workforce and resource allocation.
Step 2
Developments in information technology
Answer
Information technology (IT) developments significantly impact the operations of a multinational company by enhancing efficiency, communication, and decision-making processes.
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Enhanced Communication: With real-time communication tools, teams located in different parts of the world can collaborate more effectively. This reduces delays and improves productivity.
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Data Management: Advanced IT systems allow companies to collect and analyze vast amounts of data for better strategic decision-making. This leads to more accurate forecasts and streamlined operations.
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Supply Chain Efficiency: Developments such as IoT and blockchain in IT improve supply chain visibility and efficiency. This enables better tracking of products and reduces losses due to inefficiencies.
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Customer Interaction: Technologies like CRM systems enable better customer service and engagement. This can boost sales and improve customer satisfaction, directly impacting operational success.