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Assignment 2: Designing Value-Based Service

As the rate of innovation increases, companies face expanding product/service lines, shorter product and service lifecycles, and more frequent product/service transitions. All of these can bring tremendous value but also pose enormous challenges and risks.


The article “The Art of Managing New Product Transitions” by Erhun, Gonclave, and Hopman (2007) from the readings for this module includes a matrix titled “Product Drivers and Risk Factors,” which focuses on Intel, a company that manufactures high-tech products (p. 76). Based on your readings and research, address the following issues:


Redesign the product risk factor matrix so that the factors are appropriate for a services firm that delivers traditional tax accounting and audit services. For example, among the supply risks, assume that the company relies on individuals with specific knowledge of the tax law in the jurisdictions where its clients operate, be it state, federal, or foreign.

Now, assume that the firm wants to develop a management consultancy practice. (Alternatively, you may choose to add a legal services line instead.). Create a separate new matrix that summarizes the additional risk factors for this firm launching a management consultancy or legal services line. What additional risk factors are you adding to your matrix?

Explain how the business risks differ between traditional tax and audit services and management consulting services. In your opinion, what are the three biggest risks the firm faces if it diversifies into the new service line?

Recommend whether the firm should organically grow into a consultancy service or acquire a third party to achieve new goals. Justify your recommendations.

Develop a 6–8-slide presentation in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M2_A2.ppt.


Be sure to include the following in your presentation:


A title slide

An agenda slide

A reference slide

Headings for each section

Speaker notes to support the content in each slide

By the due date assigend, deliver your assignment to the Submissions Area.


Erhun, F., Gonçalves, P., & Hopman, J. (2007). The art of managing new product transitions. MIT Sloan Management Review, 48(3), 73. (ProQuest Document ID:224964759)


Assignment 2 Grading Criteria

Maximum Points

Redesigned the product risk factor matrix for a services firm that has traditionally provided tax and audit services and now wants to develop into a management consultancy.


20

Created a new matrix that summarizes the additional risk factors for this firm launching a management consultancy or legal services line. Identified additional risk factors to add to the matrix.


20

Explained how the business risks differ between these two types of services. Listed and ranked the three biggest risks if the firm diversifies into the new service line.


36

Recommended with appropriate justification on whether the firm should organically grow itself into a consultancy or acquire a third party to achieve its goals


12

Wrote using ethical scholarship, visual aesthetics, proper grammar, and mechanics.


12

Total:

100


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