Question

Think of a new or revised product or service offering that you would like to see on the market. Discuss the implications of producing that product or service relative to legal, ethical, environmental, profitability, competitive, design, and production issues.

Answer 1

I wish to see my favorite chocolate, “kismet bar chocolate,” again on the market. The implications of producing it are:

Legal

Since the original producer is no longer producing it, it will involve many legal formalities such as transfer of intellectual and copyrights, permission to manufacture, discloser of assets and liabilities, etc.

Ethical

Ethics are not very much involved in this, but since the original manufacturer is ethically obligated to provide all the information from product ingredients and quantities to disclose all assets and liabilities. The new manufacturers are obligated ethically to provide the same taste to the customer.

Environmental

Reviving an old manufacturing unit and starting manufacturing involve lots of cleaning with chemicals. Also, since old manufacturing units utilize carbon-based fuels, the resulting pollution and environmental damage can be substantial. It is better to assess the situation and take necessary permission from govt. Agency to do so or replace the system with gas/steam-based systems.

Profitability

Starting an old plant involves a substantial investment, which increases the selling price (keeping in mind how much the consumer wants to pay). Profitability in 2-3 years will remain almost negligible because most of the profit gets into the investment cost. Still, in later years it will be good keeping in mind the vast demand for the original “kismee bar chocolate” in the market.

Competitive, design, and production issues

Production will not be smooth as workers take time to get accustomed to new processes and equipment. Competition is good with Kitkat, 5-star Cadbury, but no one with “kismee bar” taste and price. Initially, design needs to remain the same so that most people instantly recognize their childhood love.