Week 8 Discussion For this discussion, your focus will be to think through what asymmetric information, moral hazard, and adverse selection have to do with hiring a police officer. Instructions….
AEM Company wants you to be its consultant
AEM Company wants you to be its consultant.
AEM is an Asian electronics manufacturer that has a strong position in the declining market for standard mobile phone handsets based on its core LCD technology. It has developed a good position in supplying display panels up to 2.5 inch diagonal. Most of their sales are to Original Equipment Manufacturers (OEM) for building into complete products but they also make their own products for the Asian market. The company’s CEO, Jack Smith, sees the future for the company’s television business as being in displays of at least 3.5 inch diagonal for smart phones with potential growth into tablet computers. He has a dilemma because, although LCDs are the established technology, OLEDs are starting to make major inroads. The investment in building a new production line for display panels of any type is significant. He can only afford one and the choice has to be right. Jack Smith has worked in the United States and has used consultants before. He calls you and asks you to look at the following questions and develop a consulting project for this company. Your consulting project report can propose what he should do step-by-step. Jack Smith has following questions and how to achieve his company goals.
1. What is the consumer perspective on the two alternative technical solutions?
2. What is the market size and expected growth?
3. What are the market drivers?
4. What sizes of displays should he build?
5. What product performance is required?
6. What is a reasonable target market share and how does this split between own brand and
7. What price does he need to sell at to establish a sustainable competitive position?
8. What market research material would be required to support the choice of technology and define the product specification?
9. How can Jack Smith’s company achieve a return on investment that is acceptable to his board and investors?
10. He also would like to have clear guidance for a specific implementation plan to achieve set goals and targets.
Use the description of the AEM company above. You may use appropriate assumptions in answering the following questions. Answer all 3 questions.
Q1. Describe the complete consulting process including aims, goals, and objectives etc., you will undertake to complete the project for the AEM company. Suggest a comprehensive implementation plan. What analysis techniques would you use and why? How will the chosen techniques and tools help the AEM company? Next, describe the challenges you may face, how do you solve such issues, and complete the project on time to the fullest satisfaction of your client? (10 points)
Q2. As a consultant, you need to plan your communication with the AEM clients. Your objective is to positively influence the client and get your client to implement the ideas you presented. What communication processes, techniques will you use? Discuss at least 3 ways and discuss the advantages and disadvantages of each different method of communication. Describe 3 creative approaches you use in your presentations and communication with your client. (10 points)
Q3. Describe post project completion process and how do you continue the follow-up with your AEM client. Prepare a consulting log. The consulting log should include details on the stages of the project, events, milestones, completion dates and client communications. It should be in line with the objectives set and the outcomes achieved. It also includes important information for the project and each analysis completed. (10 points)