Question

as the plant manager, eli is concerned with having enough employees to meet production needs and managing cash flow for a specific product. which stage of the product life cycle is eli likely managing?

Answer 1

Eli is likely managing during Stage 2 of the product life cycle, where diminishing returns begin to occur, and he needs to balance employee numbers to optimize output and costs.

Step-by-step explanation:

Eli, as the plant manager who is concerned with having enough employees to meet production needs and managing cash flow for a specific product, is likely managing during Stage 2 of the product life cycle. During this stage, production output continues to rise, but at smaller increments, indicating diminishing returns. This is the stage where a balance needs to be struck between hiring more employees, for tasks beyond production, and managing resources effectively. The plant manager must ascertain the optimal number of workers to achieve maximum output with minimal expense, avoiding the pitfalls of Stage 3 where excess workers could lead to negative returns.

Answer 2

Eli's concerns about having enough employees to meet production needs and managing cash flow for a specific product suggest that he is likely managing a product in the **Growth stage** of the product life cycle.

Here’s why:

- During the Introduction stage, the focus is typically on product launch activities, and demand is uncertain.

- In the Growth stage, the product has begun to be accepted in the market, and demand starts to increase rapidly. This is the phase where the company needs to scale up production to meet the growing demand, hence the need for more employees. Cash flow management also becomes crucial as the company may need to invest in production capacity and marketing while ensuring profitability.

- The Maturity stage is when the product has reached peak market penetration, and the demand is stable or starting to decline. The emphasis here is more on efficiency and cost reduction rather than expansion.

- In the Decline stage, the product is facing reduced demand, and the focus may shift to reducing costs, discontinuing production, or pivoting resources to new products.

Eli's situation fits best with the Growth stage, where balancing the ramp-up in production with cash flow management is a typical challenge.