Steel18.4 short
T
The
Gaz
zette – Quarter
Q
r2
Div
versificatio
on
The
ere is com
mpetition evverywhere. The
presssure to sh
how positive
e financial results
is g
growing. Growth throu
ugh diversiffication
is being
b
cons
sidered, sin
nce some of the
exissting produ
uct segmen
nts appear to be
satu
urated or arre likely to be
b soon. Th
here is
ade
equate cap
pacity and abundant labor.
The
e obvious re
esponse is to attend to
o more
segments of th
he market. This meanss fresh
estments intto new prod
duct develo
opment
inve
and
d its promotiion in the ne
ew markets
s. New
marrkets offer a new lea
ase of life to
t any
indu
ustry, and keep
k
it going, till comp
petition in th
he form of a better pro
oduct at a lesser
pricce catches up
u with it.
Imp
plications of New Prroduct Launch
Expenditurre heads
Launc
ch of Fprod
d
Launch of Lprrod
Labor Cost//Unit
Base Rate x 2
Base Rate x 2
Over Head increase/Q
Qtr
Cu.50
00,000/-
Cu.1
10,00,000/-
Capex//Revenue
Payme
ent Terms
Price Bands
s
Implementa
ation time
100%
% in the same Quarterr
Cu. 55
50 to Cu.1100
Cu. 650 to Cu.1300
Immedia
ately from th
he Qtr of lau
unch
s can be launched in
n the same
e Quarter. If you are
e launching
g one
Botth products
product out of
o the two in
i this qua
arter, you may
m launch
h the otherr product in
n any
of the subsequent Quartters.
Bus
siness Pro
omotion
u may invest money in the advertis
sement of Tool
T
only and not in other Productss.
You
How
wever to boost the dem
mand, the Dealer Comm
mission mayy be enhanced in all th
he
prod
ducts over and
a above the
t fixed co
ommission o
of 3% (Refe
er Decision Sheet).
ustry Upda
ate
Indu
1. The ne
ew EAF tecchnology on
n offer hass shown Pla
ant & Machine productivity
improve
ements of 10% higher than their ra
ated capaciity.
2. The capital costs of plant and machinerry have inc
creased by about 10%
% from
their levvels in Quarrter 0.
3. Trade Unions
U
have
e started de
emanding hike in the wages.
w
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