Business Management Report: Davenport Electronics (DE) Analysis

This report provides a comprehensive analysis of Davenport Electronics (DE), a small company manufacturing remote control electronic devices for garage doors. The report delves into the company's challenges, including the impact of computer hacking on its sales and its innovative response of changing passwords. It examines the company's market position, comparing it to competitors based on price and quality. Key concepts such as diseconomies of scale, position maps, and the product life cycle curve are discussed in relation to DE's business. The report also highlights the merits of small organizations, such as learning opportunities, flexibility, and workplace culture, and how these contribute to DE's success. The analysis covers various stages of DE's product life cycle, from introduction to maturity, and assesses the company's strategic responses to market changes and competition. Finally, the report references various sources to support its analysis.

Running Head: Business Management with Marketing
1
Business Management with Marketing
Student Name
3/18/2020

Running Head: Business Management with Marketing
2
Contents
Diseconomies of Scale.................................................................................................................................3
Position Map...............................................................................................................................................3
Product life Cycle Curve...............................................................................................................................4
Merits of small Organization.......................................................................................................................4
References...................................................................................................................................................7

Running Head: Business Management with Marketing
3
Diseconomies of Scale
In microeconomics, economies of scale are expense losses induced by a rise in corporate size or
efficiency, contributing to an improvement in per-unit cost of production of products and
services. The definition of micro economy is the reverse of small capitalism (Evans, Richard B.,
et al.).
Position Map
The position map reflects the position of the company in the market. It compares all the
competitors and show position of every company. Therefore, DE uses this to know its position in
the market. They provide high quality products with medium charges means their value in the
market is good as compared to its competitors. The innovation done by DE was amazing and that
has great impact on its market position (Emek, Yuval, et al., 2).

Running Head: Business Management with Marketing
4
Other companies have not enough quality of remotes and still they charge high or medium prices
which make their position down in the market.
Product life Cycle Curve
The product life cycle curve has some stages named as introduction, growth, maturity and
decline. There is proper sequence of all the stages. These are associated with changes in the
market conditions or strategies. In the same the DE has its product life cycle. In its starting years
there was not much profit and the curve was on introduction only. Thereafter some changes
occurred and the curve started moving upwards at the growth stage. The growth stage is a stage
at which there are some percent of profit within the company. There was too much of
competition among all the companies and due to that the company was facing issues in its
growth (Tao, Fei, et al., 27)
After that, some hackers were discovered and they steal the passwords to open the garage. This
has created a heavy loss to companies. Now every company was searching a remedy to address
this situation. At that time the DE though and worked so hard to address this issue and they
developed a way which was that they will change the password after using it. And because of
this hackers now cannot open the garage as the passwords were changes instantly. This was the
stage where the DE was at its maturity level as there was heavy demand of it products. The
maturity comes when a company’s product is earning high profit without a single percent of loss.

Running Head: Business Management with Marketing
5
With the bunch of order and high demands there was high growth in the company’s revenue. The
company earned a high percent of profit. Thereafter the stage come of declining which means
the company is earning profit but with the less percent or decreasing percent. The percent of
revenues goes on declining.
Merits of small Organization
Small organizations as compared to large ones are very better and feasible. Most of the
companies or investors prefer to incorporate small organizations. There are some of the
following merits of small organizations:
 Learning different aspects of business: Most staff is desperate for functional
knowledge and seeks to learn realistic knowledge. Small business owners should
illustrate the advantages of actively collaborating with senior executives, and of having a
clear understanding of other facets of the operation of an organization.
 Opportunity to advice: Workers in a small business are the stereotypical huge fish in a
little pool. This ensures workers are easily recognizable from the first day so those at the
top can see their new thinking so diligent work. Small business owners should stress the
prospect of acquiring new skills and eventually getting recruited from inside. "We will
make you acquainted with the company and management, planning for leadership or
entrepreneurial positions in the future, because you would have the potential to work in a
variety to practical fields," Good says.
 Flexibility: Some business cultures are renowned for their tremendous organizational or
project versatility. There are important incentives for working parents, in fact. Yet a small
company may still provide versatility, and often experienced small business owners
provide flexible schedules and telecommuting options for highly talented employees, for
example, to allow for reduced wages or larger incentives. During the execution of
programs, local businesses also have greater versatility. "There's not that much
paperwork in a small organization, and innovations and initiatives can be executed more
easily," says Nice.
 Workplace Culture: Most businesses are proud of a good corporate community, an
significant selling point for job seekers. Yet the atmosphere of a small business may also

Running Head: Business Management with Marketing
6
be a strong draw for new entrants. A community that is compatible, or at least seeks to
match, with the successful businesses ' sectors should be welcomed by small business
owners. Whether the community is a welcoming family environment, or one that
emphasizes on creativity and growth, or something special, small business owners will
cultivate and encourage their working cultures as properties.
 Creative Bonuses: In general, small companies cannot afford large bonuses. However
they can be innovative and can tailor their added advantages more easily as they have
fewer bureaucracies. It may indicate that a favorite worker will be compensated with a
day off on a kayak or lavish spa tour. Such personalized focus will render an employee
proud to work for a small business (He, Bin, Ting Luo, and Shan Huang. 238).

Running Head: Business Management with Marketing
7
References
Ali, Munira Mohd, et al. "A product life cycle ontology for additive manufacturing." Computers
in Industry 105 (2019): 191-203.
Emek, Yuval, et al. "Approximating generalized network design under (dis) economies of scale
with applications to energy efficiency." Journal of the ACM (JACM) 67.1 (2020): 1-33.
Evans, Richard B., et al. "Diseconomies of scale, Information processing and hierarchy costs:
Evidence from asset management." Information Processing and Hierarchy Costs: Evidence from
Asset Management (April 4, 2018) (2018).
He, Bin, Ting Luo, and Shan Huang. "Product sustainability assessment for product life
cycle." Journal of cleaner production 206 (2019): 238-250.
Kim, Sung Hyun, Si Young Jang, and Kyung Hoon Yang. "Analysis of the determinants of
software‐as‐a‐service adoption in small businesses: Risks, benefits, and organizational and
environmental factors." Journal of Small Business Management 55.2 (2017): 303-325.
Tao, Fei, et al. "Internet of Things in product life-cycle energy management." Journal of
Industrial Information Integration 1 (2016): 26-39.