Summary Report to the CEO

Introduction

Due to the recent plan by the company to introduce a new line of products that will deal with a variety of clothing items such as tops, hoodies, shorts, and jeans, an assessment of its impact on the firm was carried out. This was done with attention on the marketing, human resource, operations of the company, and finance. Therefore this report will focus on those four areas.

Marketing

Marketing is an essential tool of the firm that has significantly played a significant role in promoting the success of the company. Some of the functions it carries out include determining the aims of the marker, establishing a plan, budgeting of sales, expenses, and profits, coordination of the marketing activities and sales promotions (Wierenga and Van der Lans, 2017). The assessment that was carried out concerning the issues was to determine the level of competition that will be faced by the firm on the introduction of the new product line, the ideal target consumers of the products, among others. Some of the developments that come in regarding the issue required the company perform some changes such as developing a new marketing strategy and carry out a study to determine the target consumers. Others are to roll out a campaign to create awareness of the product and establish means that will enable the firm to address the issue of competition from other consumers. The diffusion of innovation will help in understanding how our consumers will adapt to the new product.

Human Resource

The human resource has various functions in the firm, including the process of hiring employees. Others include planning, controlling, directing, organizing, and training of employees and performance appraisal. In this case, th introduction of a new product will require the recruitment of more staff into the firm to promote smooth operation and also to deal with the marketing of the product. Furthermore, they will also be required to provide training services to help those joining the firms, and the existing ones have a better understanding of the products and also how to market them successfully (Michie et al., 2016). Designing jobs and developing a distinct task that all the employees will be assigned will also be done. Therefore, the human resource department will be impacted by the need for more budgetary allocations to allow them to carry out their functions efficiently. Besides, the application of the expectancy theory will be applied in this case to promote motivation, which will be required throughout the business operation.

Operations

This is another important function in the firm that is involved in the planning, control, organization, and coordination of all the resources required to provides the goods and services by the firm. To facilitate an efficient provision of services in the new line that is being considered. The operation will require the materials that will be used, enough personnel who are qualified to offer the services, more information concerning the product, and more capital to enhance the delivery process (Slack and Brandon-Jones, 2018). Therefore, they will require more resources. One of the theories that can be applied in this case is the Reconfigurable manufacturing systems to promote the accelerated change to the structure

Finance

The finance function is a crucial element of the business, and some of its services include helping in an establishment, running, expansion, and purchasing assets for the firm. Therefore, they help the firm in the identification of the required capital, sources, comparing the best source and investment decisions. Based on the decision to consider bringing in a new product line, the finance function will be required to find sources and ensure that the funds are enough at a reasonable cost. Others include ensuring that the funds are not idle and thus well utilized

Conclusion

In conclusion, the consideration to venture into a new product line will have a significant impact on the firm. This is because of the needs to meet human resource needs, operational needs, financial and marketing needs. Therefore, important strategies should be considered before venturing into it.

 

 

List of references

Michie, J., Sparrow, P., Cooper, C. and Hird, M., 2016. Do we need HR?: Repositioning people management for success. Springer.

Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and practice for strategic impact. Pearson UK.

Wierenga, B. and Van der Lans, R. eds., 2017. Handbook of marketing decision models (Vol. 254). Springer.