Describe, in detail; how you can best fix the problem (provide pluses and minuses associated with your supplied problem solution)? The phase of recession is the phase of business cycle in which the economic activities experience the downward trend. The demand in the economy falls , business investment decreases because of decreased scope of sales and unemployment rises leading to fall in GDP. The root cause inside the case is the declining sales and productivity of Moto's Integrated Controls Division (ICD) because of a drop in worldwide demand for machine devices prompted by the recession and savage rivalry. The ICD detailed a 5% downfall in sales in 1982 and again in the initial a half year of 1983, which put the future of the business in uncertainty. To keep the business running, the company needed to justify spending $3 million which it had done on various kinds of technological improvements and innovations , and there were questions about whether the investment could be justified. The fact that Moto had a matrix structure with distinct product divisions and country organizations elevated this issue more , making it challenging to coordinate efforts and guarantee profitability across the entire organization. In recession , the demand for the equipments fell as the businesses were investing lesser amounts in the production. Also the additional investment in R&D done by the company , was now on the verge of loss as the sales were declining and it became almost impossible to recover this investment in the phase of ongoing recession.Even though Moto's focus on research and development was a source where it was expecting to get a very good return, it was unclear whether it was yielding a sufficient ROI. Overall, the ICD's declining sales and profitability in a challenging market environment and the need to balance the priorities of various divisions and organizations within the company are the root of the issue.
Describe, in detail; how you can best fix the problem (provide pluses and minuses associated with your supplied problem solution)?
The phase of recession is the phase of business cycle in which the economic activities experience the downward trend. The demand in the economy falls , business investment decreases because of decreased scope of sales and
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