Question

As anticipated, CEO, Rodoshi Plastic Industry (RPI),a both domestic and overseas market oriented largest plastic goods industry in Bangladesh, has called you in his office today at 10.30 am and said that, “ look PS, as I told you before, you shall have to work very hard to come up to my expectation. You have experience of working in a factory, I believe that experience would give you Enough strength. Now let’s talk business—we shall have to undertake a study on what all shape external competitiveness. For that matter please, prepare a summary as to how we should deal with ‘Product Market Factor’. Must give enough example by own language. It should be within 500 to 700 words.

TEXT BOOK IS Compensation by Milkovich, Newman and Ratnam 9th edition, page-164-175, chapter International Pay systems, but own language with details own example

Answer 1

For Success of organisation Deal Product-Market Factor should be correct, Proper deal with Product-Market Factor always beneficial for organisational growth and Success.

In any organisation Product-Market Factor is used as,

If any organisation increase demand of their product takeaway, then they have to arrange product factor market components such as Labour, Raw material for fulfil the demand.,

If any organisation did not get high demand of product and they hire employee or labour then it impact on organisation liabilities, Cause have to paid wages to employee but they cant produce products, Because of low demand from market, Create expenditure for organisation and also increase in Household income, that's why always organisation have to Deal with Product-Market Factor in a correct way.,

If Radoshi Plastic industry Have to deal with Product-Market Factor, then they have to maintain balance in demand and supply of factor market such as labour, raw material or other component, if Radoshi Plastic industry demand take away of product, so they have to employ workers for production of plastic products, which is beneficial for them and also sustain balance of household income of employee,

Without getting high demand for Radoshi Plastic industry if Recruit employee workers then first thing they have to paid wages to employees and did not get production, so it is loss for them and also it can increase household income of employees, it is not good deal with Product Market sector.,

For Example –

I have to Manufacture or produce any Smartphone then there is a need of accessories which is order from another organisation,

After got Demand for smartphone after that only Order accessories from another organisation for fulfil the demand and make production it is called Deal with Product-Market Factor in best way, to fulfil the demand of market.

But if without takeaway Demand of smartphones in market if organisation order accessories from another company then it is not good deal Product-Market Factor.

Simply Product-Market Factor is related to Elasticity of demand, if demand is high for product then Arrange (increase) input for Increase output, it is called Deal with Product Market Factor.

One of the famous company Nokia was Shut downed cause they did not utilized of with Product-Market Factor in right way, without demand indetify they made millions of Phone with their Symbian operating system, and after that Android operating system enter in market and demand of Android operating system smartphones increases and Nokia face huge loss.

Another example –

If demand of McDonald Pizza takeaway then McDonald's will lead to employ more Pizza Workers it is Called Best Deal with Product-Market Factor.

Because if demand of product increase for pizza then McDonald and they did not arrange Pizza workers then wages of existing employee increased, and household income is increasing, so have to deal with Product-Market Factor, have to arrange labour or Pizza workers to Sustain balance in Product Market and Factor Market. Both components interrelated with each other,

For getting best output of product market factor. Have to utilise both factors in correct way. So that why organization always take advice from Economist for use of