Understanding the Dynamics of Value-Driven Variety Management Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

How to add a business, more and more products in their portfolios, they are faced with diminishing returns on the variety and more costs to transport their products to market. As a result, managers must balance the costs and benefits of diversity in the definition of their range. Authors worked with a wide range of companies and found that common approach, in which the low volume production cut in the first place, are often ineffective. As an alternative, the authors discuss five important lessons to maximize the value and effectiveness of the various controls, and provide decision-value-driven management of various successful. First, all products are not created equal. Both of the costs and benefits can vary for different types of product options. Second, be comprehensive. Impact on the value of any field may be negligible. This connection of the effect, which makes it difficult monster. Third, make a return on investment of view. The economic rationale for adding to examine the effect of a one-off and ongoing costs over the entire life cycle of the product and to balance this against the additional benefits over the life cycle of the product. Fourth, the various management strategies to adapt to the type of value. Fifth, the reduction of production costs, without reducing the complexity of the product. "Hide
by Thomas Olavson, Chris Fry Source: MIT Sloan Management Review 9 pages. Publication Date: 01 Oct 2006. Prod. #: SMR226-PDF-ENG