Chester Corporation is in the manufacturing and production of sensors for technology use. Sensors are devices that observe physical conditions in technology. Chester is composed of four key senior managers that are responsible for the companies operating decisions. Drew Brown is the head of Research and Development. Drew’s responsibilities for Chester are to design the product line and to invent and revise products to keep them appealing for customers needs. Mariah Klenke is the head of the Marketing department for Chester. Mariah’s duties for marketing are to promote and price the products produced here at Chester. All of the sales forecasting also comes from the marketing department in which Mariah was in charge of forecasting. Sam Bradshaw is head of Production and HR decisions. The production process of Chester is to ensure that adequate amounts of products have been produced to meet the sales forecasted by Mariah in the Marketing department. Also, Sam is responsible for buying and selling production lines for Chester. Financing operations and activities are managed by Patricia Avery. Where she ensures that Chester is financially able to start production. Being made up of only four managers the success of the company is entirely on these individuals to ensure success. Decisions for Chester are individually made to be more specific and precise for maximum profit and production. Although decisions are made for Chester individually the companies mission statement and ethics are always in mind for each decision from any member of management.
In the beginning of life for Chester management decided to work towards a niche low cost production strategy that focuses on low end products. This will help the company gain a competitive advantage by keeping R&D, production and material cost to a minimum, enabling the company to compete on the basis of price. Automation levels will increase to improve margins and to offset second shift cost. Being focused on the low end segment of production the main emphasis was on the cost of each item. Focusing on the cost Mariah concentrated on lowering the price as much as possible with Drew making sure the R&D aspect of each product didn’t fall outside of the market segment compared to other products. By doing so, the automation and revision dates of products were crucial to maintain for future years of business. However, this was the first spin for Chester in a downward fall of total profits.
Market Segments Sensors of all different criteria are produced at Chester. Market segments for each product are very different and contain different aspects that are crucial to staying ahead of competitive firms. In the traditional segment the most important factor concerning customers was the age of the product, which is managed by Drew in the R&D department. The second importance is price, which is managed by Mariah in the Marketing department. Each round the ideal prices for each segment