Problem 2: Obtain a $2 million funding for a project that failed twice
Internal analysis
Causes
The Filtration Unit has not launched any product that succeeded in 5 years. The company loses $6 million annually because of the unit. Moreover, the team faces many difficulties. They are affected by two failures on a promising project. Since they are not productive enough, they lose trust from the other managers. In addition, the residential irrigation mini-oxidation system (RIMOS) is a new product that offers no guarantee of success since the market is unknown. Vyas and Jackson are hesitant even if the team is confident.
Consequences
Although the project may be a good opportunity, the managers are not sure that an approval would be a good decision.
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Giving the team a third chance would be the confirmation of David Hall’s willingness to encourage “worthy attempts, even when they are unsuccessful”(Bartlett & Beckham, 2010). According to the forecast sales, the RIMOS could generate sales of $5.45 millions in 2007 and the amount will increase until reach $13.07 in 2011.
Recommendations
Because water is an issue affecting the whole World, ART should be involved and work to solve this problem. The RIMOS project is the first step of a process corresponding to the mission of the company to change the world.
The team should be more disciplined and try to respect deadlines.
Implementation plan
The first step is the approval of the project by Vyas and Jackson. Then, immediately after the approval, they convince the HAVC department to take part in the project and make a good marketing plan. In the third step, the Filtration Unit and its collaborators launch the project, using the brand and contacts of Applied Research Technology Inc. The fourth step is devoted to the evaluation and re-adjustment of the RIMOS depending on the uses and sales of the product.
After 2 years, the company could try to extend the market and target developing countries, before the competitors launch any