PPM 6

Question 1

discuss advantage and disadvantage of market focused organization

Answer 1

advantage :

_ useful when customer behavior is different
_ it focus on customer (customization)
_faster to react
_good for produc bundling

disadvantages :
_ focusing too much on customer loose focus on Product management and structure
_ miss out training of CEO and PM
_ NOT for high tech products

Question 2

discuss advantages and disadvantages of functionally focused org.

Answer 2

advantage :
_suitable for small company and few products
_simple administration that reacts quickly
_little bureaucracy
_fast decision

disadvantage:
_lack of ownership
_require many meeting to solve challanges
_ not appropriate for deep knowledge products and high tech

Question 3

discuss advantages and disadvantages of product focused org.

Answer 3

advantages
_ PM is mini CEO
_ PM has clear responsability
_ direct answers
_ Pm full authority

disadvantages
_ too much focus on product so they miss out big picture and market and customer
_ only short term focus

Question 4

explain the “analytic framework” management might use to evaluate competences and performance

Answer 4

analytic framework is a competency scorecard in which there is included the competence dimensions that we want a PM to have

each dimension should also have a specific characteristics and featuers

example :
dimension : create strategies / manage multiple priorities
characteristics : ability to spot trends / organize plans

at the bottom of this score card there is a total weight scores

Question 5

what is the advantage for a PM of contribution income statement compared to traditional income statement

Answer 5

traditional : it provides basic info ( sales - cost = gross margin ) this doesnot tell so much

contribution income statement : it shows a more clear picture on what direct cost drivers are (variable and fixed cost) this way a PM can see which variable cost counts

Question 6

what type of information is integrated in the product factbook ? via what methods can product performance be evaluated ?

Answer 6

integrated factbook:
_ intelligence gathering ( internal vs external) 
_performance history ( market share and financial history)
_ qualitative data on production, pricing and promotion

to measure product performance :
_customer responsivness on sales calls
_ % of distributers stocking the product to sell it later
_ request for Demos