Two Questions 3 Essay Example | Topics and Well Written Essays - 500 words

two Questions 3 - Essay ExampleBecause of his inability to exert proper cost control, Lopez was relieved of his responsibilities in 2008, and Gabriella Garcia became operate of Consumer Products Research. Garcia vowed to improve the performance of CPR and scaled back CPRs development activities to obtain complaisant financial performance reports.In terms of win, Garcia did a better job than Lopez as a vector sum of scaling back the project development. When profits are low and management is looking to cut cost, consumption significant amounts of money on research and development is not the appropriate tactic. R&D is pricey and, as the timeline of two years from project initiation to implementation under Lopez demonstrates, t here is no renovation on investment reflected in the financial statements until well after the products are brought to grocery. During times of low profit margins, development has to be scaled along with cost initiatives to keep management and investors satisfied. Even though Lopez developed good ideas, his efforts at cost control failed because there was no actual cost cutting and no immediate impact on revenues. While it could be argued that, given enough time, Lopezs management would withstand yielded greater profits at lower costs. Managements focus on profitability, however, precluded the companys ability to focus on R&D to the extent that Lopez intended. Garcia, however, reducedbut did not exhaustdevelopment while simultaneously focusing on cutting the costs related to current market offerings. This had an immediate impact on the companys profitability and management was no-doubt pleased with the results. The issue here was time. It does take time to develop innovative products and bring them to market. This effort, however, cannot be the sole focus unless the company is before long in a strong financial position and can absorb the R&D costs until the new products are in place. Simply stated, the company could not afford