M9721807 Tiffany Putri

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Le Petit Chef
Mission ImPossible

• M9721807 Tiffany Putri
• M9721803 Sulistio Handayani
• M9721002 Irene Chen

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Contents

• Microwave Industry
• Technology
• Market
• Recent Development of Microwave

Le Petit Chef
Le Petit Product Line
Project Selection and Execution
Le Petit Market Development
Crisis and Dilemma
Solution
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BACKGROUND OF MICROWAVE OVEN INDUSTRY
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Microwave Oven History

• History
• 1940
• Radar(Radio detecting and ranging)
• 1946
• Magnetron and Chocolate bar
• 1947
• The first commercial product hit the market
• 1952
• The first home microwave model, 1295

5 ½ feet tall Over 750 pounds 5000
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Technology of Microwave Oven

• The Basic Techonology

• Microwave oven uses various combinations of
  electrical circuits and mechanical devices to
  produce and control the output of microwave
  energy for heating and cooking.
• Two fundamental sections
• Control section
• High-voltage section

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Technology ofMicrowave Oven
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Cost structure of a microwave oven as of total
cost
Scale-sensitive
Over 40
Impact of providing an additional grill
feature on the cost structure of a basic oven.
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The level of sophistication of a microwave oven
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Recent Developments

• Combi-Ovens
• A combination of microwave and other cooking
  modes to provide a variety of options.
• Steaming, browning and grilling
• Accessories
• Allowed users to cook specific types of food
• Intelligence
• Fuzzy logic
• New control technique
• Improve the ease of use and performance of
  microwave ovens

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BACKGROUND OF LE PETIT CHEF
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Introduction
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Sales

• Product Mix

• Turnover by geographic region

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Strategy

• Differentiated through
• Technical innovation
• Performance features
• Combi-ovens
• Combined cooking modes of grilling and convection
  heating with microwave cooking.
• Pull marketing strategy
• Exclusive recipes
• Created a strong brand image
• Innovation design and high performance
• Diversify into manufacturing other high-end
  countertop appliance.

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Operating structure

• High conformance quality
• Reliable order deliveries
• Low costs
• Strong control over suppliers
• Heavy investment in RD
• Inter-functional coordinate and cooperation

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Organization Structure
CEO
CFO
Finance Admin
Manufacturing
Marketing
Sales
RD
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Product Line Map
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Liberte Italia 20L
Liberte Ultigril 20L
Ultigril Electonique 20L
Liberte Rotesori 20L
Liberte Italia 25L
Liberte Ultigril 25L
Ultigril Electonique 25L
Liberte Rotesori 25L
Liberte Ultigril 35L
Ultigril Electonique 35L
Liberte Italia 35L
Compacte Liberte 20L
Liberte Electonique 20L
Liberte Rotesori 35L
Liberte 25L
Liberte Electonique 25L
Grande Liberte 35L
Egalite Deluxe 20L
Egalite Uno 20L
Liberte Electonique 35L
Egalite Deluxe 25L
Egalite Uno 25L
Egalite Deluxe 35L
Egalite Uno 35L
Egalite Compacte 20L
Egalite Crousty 20L
Egalite Crousty 35L
Egalite 25L
Egalite Grande 35L
Egalite Crousty 35L
1990
1991
1992
1994
1993
1995
1996
2000
1999
1998
1997
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Project Selection Excution
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Project Selection
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Project Execution
The project plan included the NPV Analysis, a
project Charter, the Detailed sequence of project
activities split into a number of different
phases separated by clear decision points for
reviews by the head of other departments.
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Le Petit Market Development
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Recent Market Development
Low end mid range segment
Price Decline
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(No Transcript)
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The Crisis
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Propose Microwave Oven
306 person NPV 7,000,000 18 months
72 People NPV 20,000,000 12 months
180 People NPV 10,000,000 18 months
24 People NPV 15,500,000 6 months
30 People NPV 14,400,000 6 months
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On Going Project
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Gagnes Dilemma
Propose Project
On going Project
Vs
Price and Visible Feature Differentiation are
paramount in todays market
Marketing opinion
Cost Reducing sound like to trim Mercedes-Benz
down to make Fiat
Engineering opinion
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Problem in Product Planning Activity

• Too many projects overall.
• Too many derivative projects( v.s Platform
  project).
• Overcommitted resources.
• Inappropriate skill mix in RD.
• Little top-down input to project generation (the
  focus being on bottom-up suggestion).
• Dealing with potentially radical disruptive
  technology trends.

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Things to Consider
Customer Need
NPV Project
Recent Market Development
Competitor
Human Resources
Cost
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Solution
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Solution ..
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Opinion from our classmates

• Hai
• Depend on the NPV, I may choose the highest one.
  But we still need to know more detail and
  information about the projects.
• Silvia---The fourth and the second projects
• If we just consider about numbers, such as NPV,
  human resources and time to complete the project,
  I may choose the fourth project.
• Depend on the strategy, considering about time
  limited. The company can choose the second
  project to create a new market.
• Luz---The second project
• Because of NPV, people and time, the second is
  the best one. In another way, Asian market is
  another chance, because of Asian people may think
  the brand from Europe is kind of luxury. It will
  be another chance to create low end market.
• Combine on going project for product design and
  product modification
• Pipe---The fourth and the first projects
• The choices is base on the company strategy, if I
  could choose one of the project, then
• Short term strategy The fourth project
• Long term strategy The first project
• Henky---The fourth project
• To think about why people use microwave oven, one
  important reason is they want to save time. So
  the performance is important, project 4 enhance
  the speed of cooking.
• Marketing department always focus on low price,
  good quality, they can sale easily.
• RD department want to create unique, high
  quality product.
• Focus in product design for the on going project.
• Bodhi--- The first project
• NPV is just a prediction, its only project
  prediction. We can not just look at the NPV in
  deciding which project to go on. I rather choose
  first project which is fuzzy logic as it is a new
  innovation in the market and this is very
  important for company which its operation based
  on the innovation to be able to compete in the
  market. It might give lower NPV but company can
  be a market leader for the technology

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THANK YOU FOR YOUR ATTENTION

• LE PETIT CHEF BY MIPS ANGEL