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Managing Technology And Innovation (Entr 542) Question Paper
Managing Technology And Innovation (Entr 542)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
TIME: 3 HOURS
Instructions: Answer Question ONE and any other Three Questions.
Question One
CASE STUDY
RE MARKETING OF PERSIL POWER
In 1994 the Anglo-Dutch firm Unilever launched its revolutionary new washing powder "Persil Power" across Europe. It was heralded as the first major technological breakthrough in detergents for 15 years. Development has taken 10 years and more than £100m. Re product contained a manganese catalyst, the so called ’accelerator’ which Unilever claimed washed whiter at lower temperatures.
The properties of manganese were well known in the industry, but in the past no firm had been able to produce a catalyst which did not also damage clothes. Unilever believed that it had developed a suitable managanese catalyst, and protected its development with 35 patents. The company had test marketed the new product in some 60,000 households and more than 3 million washes and was sufficiently confident to launch the product in April 1994. However, reports by procter and Gamble, the Unilivers main rival, and subsequent tests by the British consumers’ association found that under certain conditions persil power significantly damaged clothes. After a fierce public relations battle unilever was forced to withdraw the product, and wrote of some £300m in development and marketing costs. What went wrong?
There were many reasons for this first, nature of the test marketing and segmentation. Unilever had conducted most of its tests in Dutch households. Typically northern Europeans separate their whites from their coloured wash and tend to read product instructions. In contrast, consumers in the south are more likely to wash whites and dyed fabrics together on a hot wash. Remanganese was fine at low temperatures for whites only but reacted with certain dyes at higher temperatures. Second, the nature of the product positioning. Persil power was launched as a broad-base detergents only a niche product effective to whites at low temperatures.
Unilever learned a great deal from this product launch, and has since radically re-organised its product development process to improve communication between the research, development and marketing functions. Now product development is concentrated in small number of innovations centres, rather than being split between R & D and the product divisions, and the whole company uses the formal new product development process based on the development tunnel.
What are the likely suggestions that can be given to the management of Persil Power concerning the expansion of future market of the firm?
(10 Marks)
What could be the limitations concerning the expansion of production of Persil Power?
(10 Marks)
Explain the main deciding factors that can influence investment decisions of Persil Power Company.
(10 Marks)
Discuss the role of intellectual property in Persil Power Production.
(10 Marks)
Question Two
"With the rise of the internet the scope for service innovation has grown enormously with examples discuss the above statement. (20 Marks)
Question Three
With examples from Kenya, discuss how companies have been able to cope with technological changes. (20 Marks)
Question Four
Discuss the hindrances to technological diffusion outlining how they can be overcome. (20 Marks)
Question Five
Analyse the technological leaders from Kenya citing their technological devices and the impact of the later to the society. (20 Marks)
Question Six
Explain the role of intellectual property (IP) in globalization and cite the challenges Kenya experiences in regard to IP rights. (20 Marks)
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