Project Management and Operations Research

This assignment requires students to analyze and apply various project management techniques, including earned value analysis, lean principles, and other relevant concepts. The student is expected to provide a detailed explanation of each concept, along with examples and case studies to illustrate their application. Additionally, the student must discuss the importance of project management in operations research and provide recommendations for improving project management practices.

Student Name /ID Number
Unit Number and Title Unit 16: Operations and Project Management
Academic Year
Assignment Title
Issue Date
Submission Starts
Submission Deadline
IV Name
Date
Learners Declaration: I certify that the work submitted for this unit
is my own and the research sources are fully acknowledged.
Learners Signature:

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Critical review regarding implementation of operations principle in organisation context. .1
TASK 2............................................................................................................................................5
P2 Continuity in improvement plan based on review and analysis............................................5
TASK 3............................................................................................................................................5
P3 Stages of PLC with business case, project plan and work breakdown structure...................5
TASK 4............................................................................................................................................8
P4. Effectiveness of PLC in application of project.....................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is important for a company which assist in managing operations
of a large-scale companies. It is essential that administrator of an organisation must ensure
workforce who will follow in an appropriate way within a company. There are certain actions
that can be connected to other in an effective manner. In certain conditions activities are linked
to each other that lead to effective and efficient use of time as well as resources. In this present
report, organisation taken is Hotpoint company that has a good market reputation. This
enterprise manufactures, markets and sells home appliances. Its product line involves Fridges
and Freezers, Gas and electric cookers, washing machines and electric cars. This organisation is
planning to enter in a TV sector. In this report theories and concept such as six sigma
methodology and lean principles, analysation of effectiveness of continuous improvement by
using principles of operations management Hotpoint is being discussed. Moreover, Product Life
Cycle and concept and models in PLC which will compare between large- and small-scale
projects is also being mentioned (Burke, 2013).
TASK 1
Operations management:
Within a company, essential function of operational administration is to develop an
action plan in effective manner. Moreover, they also create proper strategies as well as policies
so that plan is implemented properly. They utilise unique approaches and techniques that assist
in successful completion of a project. As entire department functions are connected to each
other, henceforth, operations managers discuss associations present situations to them. They
conduct conferences or meetings with managers belonging to all divisions and convey them
information about new project and strategies that are being utilised to achieve same. After this,
all divisions convey staff members of their division following a proper communication channel
to make them aware about new aims of the company. By this, employees takes initiative to
achieve the targeted goals in a higher manner (Chen and et. al., 2011).
With relation to Hotpoint company, it is organisation of UK that distributes washing
machines, refrigerators, cookers and many more appliances. In order to achieve a higher profit,
they decided to enter into the Large Screen Television market and produce 58 inches TV. For
facilitating this, operational department manager made an appropriate plan by taking into
consideration below mentioned points.
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Principles of Operational Management: -
Reality: Operational management mainly focuses on issues rather than techniques. They
used to focus on existing scenario of organisation by analysing the market such as if product is
successfully launched or not. This will be beneficial in analysing areas where there are more
problems arising and that impacts company's profit. After determination, they bring out answers
to solve such problems rather backing out from issues (Corder, McLellan and Green, 2010).
Organisation: As mentioned above, a company has different departments whose
operations are connected to each other, hence, managers from all departments must coordinate
with each other and work in a team to solve such issues. This would assist in bring out suitable
solution of problems which could also require less cost.
Fundamentals: A proper manufacturing is based on fundamental bonding. This support
is based on production. As it balances authenticate records, subject and documents. It gives good
quality in order to endure, since it has entire details related to resources which are utilised for
manufacturing goods. Moreover, this would also assist in maintaining discipline within
workplace.
Accountability: An organisation cannot evaluate its profits as well as losses without
recording proper accounts. Moreover, without having systematic accountability fails employees
to balance finance of a company. Henceforth, accounts department within an organisation must
develop policies and rules in a chronological manner. In order to facilitate this, they compared
metrics of actual results with expected outcome. This would be beneficial in determining
organisational structure in an appropriate way which will help them to accordingly take actions.
Variance: This helps in doing cost reduction as it is inbuilt, in case in stage, there is low
cost estimation, then it influences to utilise options and increase variety. If it is balanced properly
than it will enhance creativity (Cruz and Marques, 2011).
Causality: Usually, people who are connected with a company face different problems
such as capital shortage, requirement of urgent shipments and many more. These factors required
them to focus more on implementing or executing business operations in an effective way.
Moreover, in order to solve such problems, they must take suitable actions.
Managed passion: People who are linked to business operations of an organisation in
any way such as stakeholders, investors, employers, managers, employees etc. aid in executing
activities of a business in an effective way. Henceforth, human resource department of a
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company must select and hire skilled as well as qualified employees in order to obtain higher
results.
Humility: To achieve employees’ productivity, managers should give them friendly as
well as safe working environment and atmosphere that treats everyone equal. Rather looking at
their weak points, HR mangers must encourage them and praise their performance. This would
lead to developing potential between them that lead to productive working of employees.
Success: This is usually linked to consumers. Moreover, an organisation success is
evaluated by different consumers who purchases its services and products. For this reason,
managers must give better services at an affordable cost along with different kinds of discounts.
In business based on electrics, clients usually go for appliances that have cost discounts and
offers with them. Therefore, Hotpoint company must give discounts and coupons to customers to
garb their attention and achieve their retention for a longer duration (Fleming and Koppelman,
2016).
Taylor's theory of scientific management
This theory is developed by Fredrick Taylor and expressed that there were primed laws
that could be applied to the examination of management and acquire the desired outcomes. There
are four principles of this theory and they are as following:
 Substituting work with the help of indecomposable habit and common sense and instead
using the scientific method to analyse the work and monitor the effective and appropriate
way to perform particular task and work.
 Rather than allotting task to workers according their job, assigning work to them by
analysing their competencies and capability and train them to work at maximum
efficiency.
 Determine the employees performance and provide instruction to them to use effective
and efficient ways of working.
 Assigning the work and task among managers and employees so that seniors make plan
and providing training to workers so that they can perform their task effectively.
Lean principle:
With the help of this principle, Hotpoint's operational manager, develop fresh ideas in
order to improve production in proper way. This approach basically provides five principles
which are Define Value, Map value stream, create flow, Establish pull and Pursuit perfection.
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Entire principles is helpful in producing new products and launch them in an appropriate manner.
According to the present scenario, this company is looking forward to penetrating in a new
marketplace by product large TV products of 58 inches. Thus, it can be stated that lean principles
is helpful in attaining same in various ways that has been discussed below (Gunasekaran, and
Ngai, 2012).
Define value: This stage under lean principle elaborates wants and requirements of
consumers who lives at a specific area. In addition to this, it also determines customers income
level that is useful in analysing at what level consumers can purchase their commodities and
services. In context to this, managers of Hotpoint must concentrate on using the resources
effectively and efficiently. This will be helpful in doing cost and wastage reduction of
manufacturing.
Map Value Stream: This principle gives an estimation and a suitable guidance by which
a map can be made, and process can be executed. This will also be helpful in required stages in
each phase of PLC for attaining the targeted objectives. These stages involves purchasing raw
goods and materials in order to provides finished commodities to clients. It would help Hotpoint
managers in monitoring all the procedure of designing, allocating work to staff members,
manufacturing, giving suitable strategies to people within the market and many more.
Create Flow: In this stage, entire physical process of new manufacturing is executed in
an appropriate manner. This would be helpful in reducing obstacles that arise in similar type of
operations in order to meet the demands of customers in an appropriate manner.
Establish Pull: This principle follows the procedure similar to just in time approach. It
gives entire services according to the requirements of customers. Moreover, this is beneficial in
providing satisfaction to customers within a specific time period.
Pursue Perfection: Since, all the commodities of an organisation cannot be produced in a
similar order, Henceforth, managers of Hotpoint are needed to bring some changes in the
technology. By which perfection between products must be attained. \
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Illustration 1:
Lean Principle, 2018
Source: Lean Principle, 2018
SIX SIGMA:
This method is being utilised by Hotpoint managers, so that they can identify problems
occurred in manufacturing by implementing different methodologies. Along with determination,
it provides suitable methods in order to get rid of errors within products and services and make
them fr4ee from defects. It could be helpful for company such as Hotpoint to improve products
quality in an effective way. Henceforth, approach of six sigma is often used in manufacturing
industry as it helps in cost and time production in order to manufacture products of high quality.
Elements within this tool involves Define, Measure, Analyse, Improve and Control (DMAIC),
process of all these factors are being described below.
Define: It is an initial stage of improvisation, under which customer’s needs, demands
and preferences are being given an elaborated way. Moreover, this also provides correct
guidance that is being implemented in order to achieve the same.
Measure: This step is utilised to evaluate present condition of production as well as
improvement that has been done from beginning to actual state. Moreover, along with this, it
also measures resources that are Bing required in order to do better production (Garel, 2013).
Analyse: This stage find out problems that are being arise in executing company's
operations which also helps in analysing requirement for modifications in same.
Improve: In this step of improvisation, managers determines the need for alterations and
possibilities of doing modifications.
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Control: This is the last stage of this process which gives suitable solutions in order to
balance all h activities of manufacturing in a proper manner. By this method, operational
manager can fulfil requirements of people within the allotted time period.
Relationship between operations and other business functions-Operation management
basically refers to the process of management and control with the regard to the design,
implementation and creation of the products and services which are are generated by Hotpoint.
Operation management is also useful for operations and activities of the company. It help in
operating the business of the firm with the help of other functions of the firm. The management
of the company, effectively manage all the operations of the firm with the help of operation
management.
Enterprise Resource planning system- It is the integrated management of main business
process and use a system of integrated applications to manage the business and automate many
back office functions related to technology, services and human resources. Basically, it is a
business process management software which can be used by organisations to use a system of
integrated applications to mange the business.
Supply chain management- It is the management of flow of goods and services and consist all
processes that transform raw materials in to finished goods. It include the active streamlining of a
business's supply-side activities to increase customer value and gain competitive advantages in
the marketplace.
TASK 2
Continuous Improvement and Its Meaning
All organisation are required to do modifications in production, system, activities of
operation and various other departments within a company. With the help of continuous
improvement, it can produce and give better quality of commodities that will fulfil the
requirements of the customers in a precise manner (Kerzner and Kerzner, 2017). Henceforth, in
order to do alteration within the organisation structure, Hotpoint manager are required to
determine the state of market place, requirements of consumers and their perception related to
characteristics of current products and more. In addition to this, in order to do modifications they
should develop effective plans and also discuss characteristics of all the factors with employees
as well as employers through a proper communication channel. By this process, managers can
attain success of targeted objectives in an appropriate manner.
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CONTINUOUS IMPROVEMENT PLAN
Provider: Manger
Date: 24-05-18
Source Anticipated Outcome Recent performance
level
Improvement in
strategies
Promotional events Sales performance has
been affected a lot by
lack of activities of
promotion in Hotpoint
company. Since, there
is less promotion, this
let down in grabbing
the attention of various
customers related to
commodities and
services that are
required to increase
profits of the company.
As there is less
activity of
advertisement, people
within market place
are not aware about
new products as well
as services of an
organisation.
Particularly in relation
to TV appliances,
people usually do a lot
of survey or enquires
before purchasing
such appliances.
To produce or
manufacture new
commodity,
operational manager of
Hotpoint are required
to do promotion and
advertisement of same
in an effective way.
They can market
products by utilising
different kinds of
sources such as giving
ads on TV as well as
social media. I addition
to this, they can also
provide information
and details related to
new commodity on
company's websites as
well as other popular
applications.
After sales services After distributing People within the In order to give
7

commodities and
services to consumers,
company usually
neglect grievances and
queries of customers
that arise after giving
goods to customers.
marketplace generally
looks forward to
purchase home
appliances on special
discounts or offers and
products who more
than 1 or 2 years
warranty.
satisfaction to
customer and to fulfil
wants of customers,
mangers of Hotpoint
must give their product
with attractive
discounts as well as
offers. In addition to
this they can also
implement some
techniques that will
attract more and more
customers towards its
product.
Above mentioned improvement plan of Hotpoint is helpful in executing business
operations in an effective way. Moreover, this plan is helpful for the employers in developing
fresh ideas and ways to convert business into concept. It also assist in creating new strategies and
use them on staff members in order to obtain higher results. In addition to this, managers must
determine state of market, recent trends, need for alterations and many more. This is beneficial in
determining changes needed to be done within organisation structure as well as system. Here,
related to this, Research and Development department within this company utilised different
methods in analysing requirements and demands of customers, power of purchasing and
techniques to attain them all (Lenfle and Loch, 2010).
With the help of this plan, it has been analysed that presently Hotpoint must invest more
on their promotional activities and develop some effective strategies in order to attract various
customers. Moreover, along with this, they must change methods they use to promote or
distribute their products. After distributing products in a desired manner, they must launch
outlets at various areas of marketplace. These outlets must give solutions to issues that may face
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by consumers who have bought new commodity. Service provide in these outlets must give
suitable solutions to various grievances of customers so that they are satisfied. It would result in
raising the image of company's brand with higher ratio.
Effective strategies for implementation of continuous improvement plan
To run entire activities of a plan in an effective manner, managers must take into
consider various points. These have been discussed below.
Good employee-employer relationship- If there is any is any change within the
organisation, factor which gets affected the most is human resource. It raises insecurity within
them which give rise to different types of disputes and opposition. Henceforth, managers must
conduct meetings as well as conferences with workforce and make them aware about all kinds of
alterations, policies and strategies. In addition to this, instead of imposing they must influence
them to abide by changes and also work according to new system. Moreover, they should
communicate effectively with investors who will help in giving appropriate amount of funds that
will be required in process of production of a new product (Lindström and et. al., 2012).
Proper communication channel- To develop an effective communication with
customers, manager must open outlets in which they give open service and also follow a proper
communication channel. By this process, they can communicate with customers and also
analyse their needs and can make them retain with the company for a longer duration.
Priority to employees need- Mangers must focus attentively on employees who help in
developing a successful improvement plan. They must determine requirements of workforce in
order to complete task and give required training in order to complete it as per the need. This will
be beneficial in decreasing resistivity chances and sustain skilled employees (Mir and
Pinnington, 2014).
Cost : For making continuous improvement in the cost of organisation Hotpoint can introduce
new technologies in their functioning, so so that cost of system get reduced and also efficiency
can get increased.
Quality : For Hotpoint, it is very much important for them to make continuous improvement in
the quality of their products and services. As this will help them in attracting ample number of
customers.
Safety : It is very much important for Hotpoint to increase level of safety at their work place. For
this they can introduce proper safety equipments at their work place.
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Delivery : It is very much important for organisation like Hotpoint to make continuous
improvements in their delivery of products. For this they can use new technologies, so that their
cost can get saved and process get completed in effective manner.
Customer Relationship management : For an organisation like Hotpoint, it is very much
important for them to manage proper relationship with their customers, so that the number of
customers in customers base can get increased. For this, CRM software is best which they can
use. This will help customers in making complaints very easy, and also help them in monitoring
the status of the complain.
Total Quality Management : This is a method which is used by organisations so that they can
manage the quality of products and services they use to produce. Hotpoint can use this, so that
they can proper analysis of quality of products and services they use to produce, so that they can
make appropriate corrections in it.
TASK 3
TV project at Hotpoint:
According to present scenario, Hotpoint is deciding to penetrate in new television by
producing a TV which of 58 inches size. In order to attain this desire, its manager has developed
an effective plan under which entire tasks that are needed to done is mentioned. In order to
implement similar kind of plan, they must analyse certain techniques that are being available
within the market place which is used to produce a new commodity. As in market place there
are different kinds of resources, henceforth, employers within this company must select the best
from the all of them.
Here, in relation to TV products, customers always look for innovative, unique and
creative characteristics at an affordable price. For this reason, operational managers are needed
to develop policies as well as strategies by determining strategies that are Bing used by their
competitors in order to grab the attention of customers. This will be helpful in bringing out better
ideas that are effective for doing proposition. In order to facilitate this, they can make use of
different techniques that are mentioned below (Ogunlana, 2010).
Product Life Cycle (PLC): This cycle involves four phases which refers to the four steps
process that is followed by nearly all project managers when moving through stages of project
completion. This life cycle is effective for the company because it help in providing a
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framework to manage any kind of project within a business. The stages of this life cycle is as
following:
Product life cycle stages
Initiation- It is the initial stage of PLC that must be executed in an appropriate manner
as further steps are based on this phase. Under this stage, the management of the company
identify the business ned, problem or opportunity and brainstorm ways so that the team can meet
this need this demand, resolve issue and seize the opportunity. In Samsung, the management of
the company can figure out an aim for project, monitor the project that it is feasible and find out
the main deliverables for the work. For this process, advancement of methods as well as
technologies must be implemented in a proper way and also produce good results. In order to
launch a TV set, it would generally require 4 to 5 weeks in order to produce effectively within a
market place.
Planning- When the project is sanctioned to move forward according to the business case
. In this phase, larger project break down into smaller tasks and design a schedule for the
completion of the work. In Samsung, the management of the company can develop small goals
to run their TV set project. Under this, they can design a project plan, create workflow
documents and process map, developing financial plan and gathering resources or various others.
This phase displays that few commodities achieve sustainability within the marketplace and also
shows growth rate of new products. As new commodities of this organisation is of a large size,
henceforth, it will require 3 to 4 weeks in order to become lasting and also attain growth rates
which are needed (Pade-Khene, Mallinson and Sewry, 2011).
Execution- This is the third stage of Project Life Cycle and it turns the plan in to action.
Under this stage, the management of the company design project and conduct workflows,
provide information to the team members about tasks and work, determine the quality of work
and managing budget. In Samsung, in this phase, marketer are needed to implement certain tools
and techniques of advertisement and influence people to purchase the products. In order to
develop effective strategies, approximately 20 to 25 days are being required.
Closure- It is the last stage of project life cycle within it, the management offer final
deliverables, release project resources and monitor the success and growth of the project. In
Samsung under this phase, the management can analyse the performance of the project or task
and team members also, organising post implementation reviews. It is the last stage of product
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life cycle, which displays products that are failed to grab the attention of customers towards it.
This has a great impact on sales performance, because product becomes old so customer requires
something new and fresh again (Pemsel and Wiewiora, 2013).
Project name : TV
Project manager: Mr. XYZ
Project start date: 24-05-18
Project tentative end date: 13-08-18
Project time scale: 75 Days
TV project business strategy: The business strategy which is used by Hotpoint for promoting
their product is advertisement. As this will help them in promoting and proving information
about the product of them to ample number of customers.
TV technical specifications: 8K, 4K, OLED, HDR and high resolution display large TV
screens combined an impressive picture, an extensive set of features, an attractive design and
smart platform, to deliver one of the best TVs
TV project benefits: This will help organisation in increasing their market share and also help
them in improving their benefit, so that they can grow and develop themselves.
Costs: The estimated cost of this project for Hotpoint is about, £ 100,000.
Return on investment: It is estimated that the return whcih Hotpoint is going to make on
investment made them is about 25 percent.
Risks: This in this project for Hot point is very minimum, as in this they are producing product
which is very much popular among new generation. Therefore, risk for them in this project is
negligible.
1. Project initiation document: The Project Initiation Document is a decision document, on the
basis of which the mandate is implemented. Project Initiation Document bundles the information
that is obtained by the starting of a project and initiatives from a projectprocess in a Prince2
controlled environment.
Gantt chart:
To execute entire process or actives in an effective manner, managers of Hotpoint could
implement Gantt Chart, it is the process that displays time required by each activity to complete
in an appropriate way. This has been mentioned below.
12

2.Work break down structure: WBS is a process, which is used by manager of organisation
like Hotpoint, so that they can make analysis of tough tasks of compete operation which their
13

organisation is going to perform. As this help them in breaking down that tasks in small parts, so
that the task become easier and also can get completed easily.
3. Cost benefit analysis of TV project: Cost–benefit analysis, sometimes called benefit costs
analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives
used to determine options which provide the best approach to achieving benefits while
preserving savings.
TASK 4
The broader impacts of a project alongside a detailed analysis of the
application of the PLC:
When an organisation produces a product within a market place, then it has gone through various
issues and problems for launching that. In addition to this, this is a time-consuming process,
requires a lot of resources, money and many more things in order to execute entire activities in
an effective manner. Henceforth, in order to develop entire process in a proper manner,
operational manger plays a vital role. They conduct different types of operations in order to
launch new product successfully. It involves marketplace surveys, analysing requirements of
clients and their power of purchasing, implementation of proper techniques, methods and
advance technologies, etc. Moreover, along with this they develop appropriate plans in order to
improve business structure which involves ways in which company can fulfill its desires. It also
bring out new goals and targets (Ramasesh and Browning, 2014).
Along with this, by implementing methodologies of Product Life Cycle, Gantt Chart,
Work Breakdown Structure and many more factors in order to achieve entire activities in an
14

effective manner. With the help of these techniques, they can do proper research related to the
process of entire tasks. In relation to Hotpoint, managers are required to develop an effective
team in each department or function who will be helping in completing task that are being
allotted in an appropriate manner (Robichaud and Anantatmula, 2010).
USE A REPORT TEMPLATE
Strengths: The main strength of this project is that, Hotpoint is going to produce product which
is highly demanded by huge number of customers. This lead them to reducing the risk of failure
for them.
Weaknesses: As there several organisations at market place, which use to provide same product
as Hotpoint is going to launch. And also those organisation have huge number of loyal customers
for them.
Advantages: The main advantage of this project is that, it will help organisation in improving
their market share and also help them in increasing their sales and profits.
Disadvantages: The main disadvantage of this project is that, from the very first day of
launching new product, it will have to face tough competition at market place.
Effectiveness of TV project: TV is one of the most demanding electronic product in today's
world. Therefore, for Hotpoint it is very much sure that the product of them will not meet any
type of failure.
Performance measurement:
Milestones : It is a way to observe, measure and monitor the progress and performance of the
project. Milestone are useful and beneficial because they are able to define and provide a
foundation through which the success of the project can be monitor. The milestone of the project
is the time period required for completing it. As the time taken for this project was only of 75
days.
Targets : It refers to an object which is basically marked with concentric circles. The main target
of organisation is to increase their sales and revenue and also the target of project is to complete
it by 13-08-18.
Deliverables : It refer to a tangible and intangible good and service which is produced and
manufactured as an outcome of a project which is intended to be delivered to a customer. There
are different kind of deliverables in project such as statement of work, work breakdown
15

structure, project scope statement and project governance plan. The product which is deliverable
in this project is TV made by Hotpoint.
Benchmarks (internal and external) : It indicates to a level of quality which can be used as a
standard when comparing other things. Internal benchmarking compares performance, process
and practises against other parts of the business. External benchmarking is where a company
compares its performance with other comparable firm. This is the technique which is used by
Hotpoint, for measuring the performance of their employees at different stage of project.
Key performance indicator- It indicates to a measurable value that demonstrates how
effectively a firm can attain its key business objectives. Within Samsung, it can be used by the
management to eventuate their success at reaching targets. Firms use KPIs at multiple levels to
analyse their success at reaching targets. High level KPIs may engrossment on the overall
performance of the business.
CONCLUSION
As per the above-mentioned report, it can be concluded that, this whole project has been
made to analyse the need for innovation within an organisation. It has been determined that to
raise the performance of sales within a company and to achieve profits, managers are required to
do modifications in organisation and production structure. For facilitating this, they have created
an effective plan in order to determine condition of the market place. Moreover, this would also
be beneficial in analysing the requirements of customers and procedures by which they can attain
the same.
Recommendations
It has been recommend to Hotpoint, that they can make proper market analysis before
making a new product. As this will help them in getting knowledge that what product and service
is able to attract the customers more and also help them in getting pattern of change in customers
needs. This all help them in making strategies and plans for their future products, so that they can
attract customers in effective manner.
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