An opportunity lost: A case for active business systems

By GEAC | 18 January 1999

Imagine this scenario: A great deal of timeand money was spent on market research to develop the perfect tasting, adult soft drink.It was vanilla flavor and as clear as spring water. The customer base was extremelyexcited about the new line given the correct pricing levels and margin percentages. Thelaunch was just in time for a long hot summer when soft drink sales would increasesix-fold. For the manufacturer, it would mean grasping a major chunk of the market place.While there was some spare production capacity, the uplift in sales and subsequent profitwould more than justify capital expenditure on the latest manufacturing technologies.

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Imagine this scenario: A great deal of timeand money was spent on market research to develop the perfect tasting, adult soft drink.It was vanilla flavor and as clear as spring water. The customer base was extremelyexcited about the new line given the correct pricing levels and margin percentages. Thelaunch was just in time for a long hot summer when soft drink sales would increasesix-fold. For the manufacturer, it would mean grasping a major chunk of the market place.While there was some spare production capacity, the uplift in sales and subsequent profitwould more than justify capital expenditure on the latest manufacturing technologies.

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