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Important Dates

Practice Year Due Date and Time
6 Thu, 3-Dec-09 at 9:00 pm
Data Re-Set 6 Thu, 3-Dec-09 at 10:00 pm
Data Year Due Date and Time
Year 6 Fri, 4-Dec-09 at 1:00 am
Consultation 7 3-Jan-10 6:20 pm
Decision 2 7 11-Jan-10 2:00 am
Decision 3 8 25-Jan-10 2:00 am
3-Year Strategic Plan 3-Feb-10 11:59 pm
Decision 4 9 3-Feb-10 11:59 pm
Decision 5 10 5-Feb-10 1:00 pm
Decision 6 11 8-Mar-10 2:00 am
Decision 7 12 29-Mar-10 2:00 am
Decision 8 13 21-Apr-10 6:00 pm

Team B Members

Group 2


The Worldwide Market for Digital Cameras Percentages of Company Sales Volume in

North America Europe-Africa Asia-Pacific Latin America
company B 10% of unit sales 40% of unit sales 30% of unit sales 20% of unit sales
Yr 6 ??% of unit sales ??% of unit sales ??% of unit sales ??% of unit sales
Market Growth

The global market for digital cameras is reliably projected to grow

  • 8-10% annually for the next five years (Years 6-10) and
  • then to grow at a slower 4-6% annual rate during the following five

years (Years 11-15).

These projected growth rates apply to all four geographic regions and to both entry level and multi-featured cameras. However, in any one year, the growth rate in each region can deviate from the

  • 9% average for Years 6-10 and the
  • 5% average for Years 11-15 by as much as 1%

in either direction, with different size deviations for each region. The same goes for the projected growth rates for entry-level and multi-featured digital cameras. Hence, there’s an element of uncertainty surrounding just where within the 8-10% range and the 4-6% range the growth rate for a particular year will actually fall— for either a given geographic region or a particular type of camera.

Ratings of Digital Camera Performance and Quality

Currently, both the entry-level and multi-featured camera lines of all competitors have a 2½ star P/Q rating. Spirited competition among rivals is, however, likely to result in different P/Q ratings in forthcoming years.

Digital Camera Retailers
  • Multi-store chains account for the biggest percentage of entry-level camera sales, with online retailers second
  • local camera shops account for the biggest share of multifeatured digital camera sales, with online retailers second
  • Retail markups over the wholesale prices of digital camera-makers run 50% to 100%
Digital Camera Buyers
  • The World Digital Camera Federation’s much publicized P/Q ratings are trusted by camera shoppers
  • buyers of entry-level digital cameras are price sensitive
  • purchasers of multi-featured cameras are much more particular about camera performance and picture quality

The Competitive Factors That Drive Market Share

P/Q ratings. The vast majority of digital camera shoppers consider the widely-available and muchpublicized annual P/Q ratings complied by the World Digital Camera Federation to be a trusted measure of digital camera performance and quality. The WDCF’s ratings have 10 intervals, ranging from a low of ½ star to a high of 5 stars. Separate P/Q ratings are developed for each company’s entry-level camera line and multi-featured camera line. Market research indicates that the P/Q ratings are generally the second or third most important factor in shaping consumers’ choices of which entrylevel camera brand to purchase; P/Q ratings tend to be the most important factor in the multi-featured segment. The WDCF’s P/Q ratings are based on an array of factors:

  1. the quality of a camera’s core components (image resolution as measured by the number of megapixels, size of the LCD display screen, and lens quality/zoom capabilities),
  2. color quality of the pictures,
  3. camera controls/menu software,
  4. camera body ergonomics/durability,
  5. accompanying camera accessories (such as capacity of flash memory card, rechargeable batteries, a plug-in battery-charger, and carrying case)
  6. special utility features (flash operation, photo editing capability, media ports, and so on),
  7. the number of models,
  8. a company’s cumulative spending on new product R&D, engineering, and design, and
  9. the amount a company spends on training its production assembly teams and the accuracy of its assembly methods.

Greater numbers of models act to slightly weaken a company’s P/Q rating for its whole entry-level or multi-featured lineup because of increased opportunities for crossmodel inconsistencies in performance and assembly quality.

Decision Screens

Product Design
  • There are dependencies between Entry Level Camera and Multi-Feature Cameras such as marketing
  • Core Component Decisions Expect the prices of image resolution modules, digital camera lenses, and flash memory cards to decrease 5% annually, starting in the 1st quarter of year 7
  • Brand-Specific Component Decisions
    • The imaging part that determines color quality and the accesories are purchased from outside suppliers.
    • Camera bodies will help distinguish companies models from others.
    • Different styles have different costs.
    • Imaging software is the same for both cameras, functionality is tied to cost of camera due to royaly rights
  • Special Utility Feature Decisions
    • up to 8 special features for entry
    • up to 16 special features for multifunction
  • Deciding How Much to Spend on New Product R&D
    • Build over time
  1. boost a company's PQ rating
  2. reduce warrenty claims and costs
  3. improve productivity of PAT
    • Cumulative spending is more important than current spending
  • Deciding on the Number of Models
    • Too many models causes reduced quality
    • Increasing the number of models in a given year will reduce PAT productivity by 4% for one year


Olukemi Sawyerr Eke, Ph.D.
Associate Professor
Management and Human Resources Department
College of Business Administration
California State Polytechnic University
3801 West Temple Avenue
Pomona, CA 91768
909 869 2427
909 869 4353 (fax)

Lauren Smith
Program Manager
UCLA Anderson Executive Education 
110 Westwood Plaza, Suite A101D
Los Angeles, CA 90095
Fax: 310.206.7539

Mentor Program

Class Notes

December 2-4

I. Operations Management, part 1

Part 1: Introduction

  • Garvin, D. (1995) “Leveraging Processes for Strategic Advantage,” Harvard Business Review. Harvard Business School Publishing.
    • If you're not willing to go through the pain, do something else. Getting people to change is extremely difficult - exciting, yes, but terribly painful.
  • A Glossary of TOM Terms (1994). Harvard Business School Publishing.
  • Marshall, P. (1994) A Note on Process Analysis (Abridged). Harvard Business School Publishing.
  • Gantt Charts.
  • Bohn, R. (1990) Kristen’s Cookie Co. (A). Harvard Business School Publishing.

Be prepared to discuss the Key Questions to Answer before You Launch the Business and Problems for Further Thought listed at the end of the case.

Part 2: Application

  • Heskett, J. et al. (1994). “Putting the Service-Profit Chain to Work,” Harvard Business Review. Harvard Business School Publishing.

Please read the following case and prepare to discuss the study questions:

  • Heskett, J. (1989) Shouldice Hospital Ltd. Harvard Business School Publishing.
  1. How successful is the Shouldice Hospital? How do you account for its performance?
  2. What actions, if any, would you take to expand the hospital’s capacity?
  3. How would you implement the changes you propose? Try to anticipate the various staff reactions and problems and what steps you would take to mitigate them.

II. Finding Your Own Voice

Professor Ferdman

  • Leslie Perlow & Stephanie Williams (2003, May). Is silence killing your company? Harvard Business Review, 53-58.
  • Patton, Bruce M. (1999 Summer). Difficult conversations with less anxiety and better results. Dispute Resolution Magazine, pp. 25-29.
  • Watkins, Ralph (1994). Martin Luther King, Jr.’s “Letter from Birmingham Jail.” The Hartwick Humanities in Management Institute.

III. Corporate Strategy, part 2

Professor James

  • Making Judgement Calls Final
  • Designing Learning Organizations

IV. Introduction to Marketing

Professor Henderson

Note from Professor Henderson

  • The Fashion Channel: Market Segmentation
**Please find two documents from Professor Connie James from Session I listed below - note that these are not pre-readings.**

  • How GE is Disrupting Itself
  • 100 People Document
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