1. What is the organizational structure of Universal Luxuryâ€™s brands and R&D? What are the goals of the brands? What are the goals of R&D? In what ways do the goals of R&D conflict with those of the brands?
2. Does the necessary capacity exist in the R&D center to accept all projects proposed by marketing for the three brands? To answer this question, you will need to create a spreadsheet to compute the demand from marketing for each R&D resource versus the available capacity of each R&D resource. Utilization rates of each resource will be helpful.
HINT: Assume 216 days/year; 19 chemists in texture. Assume ancillary chemists can do 3 trials per day. Demand for each R&D resource is based on data in Exhibit 13. Start in the category of SKINCARE. (i) Separately consider demand (#trials/year) for Rio, Queen, and Andanzy for each of innovation, core and variation. This will allow you to develop a composite value for demand of the R&D resource in skincare (#trials/year). (ii) Compute R&D resource capacity (# trials/year) available for skincare. (iii) Compute resource utilization. REPEAT (i)-(iii) for ancillaries; texture; and color.
3.In Question 2, you will find that insufficient R&D capacity exists to meet marketing demand for resources. Moreover, in the following year, marketing has submitted requests that will increase the demand for R&D by 15.4%. How would you respond to the shortage of capacity in the R&D center? What other recommendations do you have to improve firm performance?