Question

Prompt

You are the Operations Manager for a technology company. Your company is looking to expand its product line and in doing so it will need a larger or even second location. What considerations are taken into account for determining which solution is best? When you decide the solution how do you secure the property? Would any other item needed to expand the product line be considered real property?

 

Answer 1

Real Property

The product line is a group of related products manufactured or produced by the same single company. It also can be defined as the different products or services which are in the same category. These products are closely related in that they function similarly, are sold to the same target customers. They are marketed the same way and their prices fall at the same range, for example, a vehicle company could have a product line of tires and car accessories. Product line expansion is accompanied by several advantages which include taking market opportunities with the newly introduced products or services and also helps to increase the loyalty of existing customers. In considering whether the company should relocate or enlarge, there are considerations that should be made. These considerations are discussed below.

Access to key inputs/suppliers/customers

The company should base their ideas on the key business issues. These basics include affordability and reliability of key inputs, the flow of supply of the product not forgetting the availability of customers. For example, a food company cannot be built in a poor infrastructure roads and a locality that has no farmers. Instead, the company should be located near farms and ranches to be supplied with farm fresh products and the roads should be well maintained to provide a great transport system of the products to the market. In our case, a technology company needs to be set up in a highly urbanized area whereby the supply of water and electricity is readily available.

The company’s position in its life cycle

Newly established companies worry more about capital sources and are likely to cluster together while older companies are more concerned about costs hence they are more willing to more to more diverse geographical areas. Access to highly skilled workers should be considered during the decision making. The supply of skilled labor is an important factor that is used even by the site location consultants.

For successful expansion of a company’s product line, its ability to develop and sell additional products related to their main products should be considered ( Friedman, 1991). The company must determine what types of products need to be added to the product line to improve the overall line.

Pursuing the customers feedback is the best way to determine the products that need to be added to a given product line. The customers’ comments on social media platforms should be surveyed. A favorable comment on a certain product which is also offered by competitors is a good indicator of need a product line expansion.

Another way of getting ideas for new products is keenly observing the competitors in the product industry. If the competitor out with a related product that is new to the market, this could benefit the company if it is added to the company’s product line and it may end up being successful.

The company must have first satisfied the local requirements. As the operations manager, one determines whether the company is fit for product line expansion and should also have a clear picture where the company is currently, where it will be soon and where the manager wants it to be. Supply constraints and more factors that may affect the product lines in the later years (Haskell, 1964). For example, the company would be selling a million services or products in China but there is certainty that the same product would sell much more in Japan than China.

After the company has decided the solution whether to enlarge their company or relocate it, the company should put into place different property security measures. These measures are designed to protect and guard property against hazards like fire, accidents, attack, crimes and sabotage. Safety of customers, employees or residents is also important. Premises should be secured by either installation of window locks or security lighting, CCTV camera installation to monitor every move in the company premises should be enhanced. Alarms should be present so that in case an emergency occurs everyone will be notified by the alarm.

Regular count on property and equipment should be carried out and allocated to individuals who will be accountable in case of their loss or destruction.

Payment of insurance covers to cover the property in case of fire and damage is also a valid way to secure the property.

Real property is land and any other property directly attached to land. It can either be rental or residential. Therefore, any other product is it land or property needed to expand the product line is real property.

References

Friedman, M. (1991). Contracts and conveyances of real property (pp. 995-1026). Practising Law Institute.

Haskell, P. G. (1964). Case for an Implied Warranty of Quality in Sales of Real Property, The. Geo. LJ, 53, 633.

Retrieved 26 May 2016, from http://Jean Murray (2015) Real property