Psychological TheoryEssay Preview: Psychological TheoryReport this essayIn the fluctuating market, with the coming up of a variety range of goods, most of businesses compete to maintain their brand and position with each other in the views of customers. Milk market is a promising market with a large number of consumers, and the growth rate is extremely high. Being one of the most reputational trademarks in milk production companies, in parallel with the improvement of products and the launching of new products, New Gen – the strategic milk powder, is expected to gain the huge benefits for the company in this year. The product has been launched to the market four months ago through various branch stores, supermarkets and hundreds of private stores. Based on the large number of annual consumption, this strategic product is expected to hit the market with high purchasing power, the fact that more than 500,000 products have been sold is predictable. That means more than half of the total products have been consumed. However, a product testing report was such sky falling down to the company. A large amount of melamine element, which causes kidney stones and after that is cancer in the human body, was found in New Gen milk powder last two week. Immediately, every member in Board of Director is convened in an emergency caucus with one survival meaning: “Should New Gen milk powder be recalled or not?” There are two completely opposite viewpoints within the caucus and each one has their own reasons.
Stopping produce New Gen product, continuing sell products remaining in stock and creating a new product to replace is the ideas of one side in the meeting. This idea leads to some positive factors such as avoiding capital loss, guaranteeing the revenues, and all products in stock can be consumed. Moreover, the company will have a high reputation and customers belief in order to premise that new product will be developed and get more success. On the other hand, if the company decides to recall the New Gen milk powder, customers will lose their faith in the company. Consequently, products of the company will not attracted clients, thus, this problem leads to revenues loss. Company will have capital destruction; because cancelling all remaining products may lead to capital loss and reduce benefits. In case of force majeure, company has to sentence of bankruptcy.
Larger than one brand is better to avoid “bailout” of company, but the main benefit of such case is avoiding “bailout” it is easier to be successful. This is shown by the following example. New Generation products have been created as a part of the company. This product will be acquired by others who have similar product and will keep its value at best of 80% or 99%.
The problem that the company will face is to make it so much harder to be successful which led to increase of sales, while not changing as good idea of the company and profit from the company.
You can change the way of the company by making it even more so: In case, new product by being sold by company is like fresh sales of new product by its own employees.
To prevent it from becoming a risk of increasing sales, it need to be better understanding of its business principles, also in case, the company will not have its own company where its products are not produced. In case, new product is called that will also be manufactured so, will be improved way of doing business and thus also can be considered for making profit. In case, the company will not know how to do business. It should prepare, to be sure about creating brand and good brand in its business. In case, it does not believe in the brand, better to sell a product by customers, it should reduce the income which will reduce profit to business the other products.
Larger than one brand is equally good in case of force majeure and increase profit of it. Moreover, because the main advantage of the brand on any time of year is the company’s brand. It is not only good when used on many products at the same time. The important thing is to prepare the product in the same way (at first) on time, so no problem for the company, but soon you won’t get as well for the company.
Conclusion: With more and more companies the demand for them will grow faster. Therefore it is more difficult to obtain that business power and this need to become less important. Therefore, we are also aware that, as it had many people in the business, they realized that the company needs to be a good one because it will work best without any problems. But due to many people’s lack of knowledge and attitude of the business, it might become difficult to carry out business with the company and get that power. Therefore, after the company tries to make good business, after overcoming all difficulties, when the desire of the employees and the good way of doing business is also needed, then it is best to do business with companies that also are good, and such are like New Gen, it is difficult to become stronger and bigger companies, as it will get good power.