TM600.88 Spring 1997 Module 3
Individual Assignment

You should read the instructional materials and assigned readings before beginning this assignment.

The primary grading criterion on this assignment will be the extent to which course concepts are correctly applied. Other criteria will include the completeness, organization and clarity of your writing.

You may discuss the assignment with your classmates; however, your written report should be original. You are encouraged to use the class list server to share ideas with and ask questions of each other. To do so, send a message (and subsequent replies) to tm600-l@mercer.edu.

Case Analysis: IV-7 Associated Instruments Corporation -- Analytic Instruments Division (15 points)

Read the case. The purpose of this case is to demonstrate the interaction between the different parts and processes of an organization and its development process. It illustrates how the development procedures are manifest in their outcome, the product, in terms of integrity, consistency and quality. It also provides an opportunity for quantitative as well as qualitative analysis. Note that this is the only case assigned for this module; as such, you are expected to answer the following questions in greater depth than before.

    1. What is your evaluation of the 77000 project? (5 points)
    2. What factors have contributed most to its successes and failures to date? (2 points)
    3. What has been the role of marketing in this project? How appropriate has this been? What changes in marketing's roles would you recommend? What other parts of the organization, if any, should be involved -- and how? (3 points)
    4. What should Bob Hoffenberger do concerning the specific issues facing this project? In general, what should he do to improve product development and its contributions to the division's competitive strategy? (4 points)

Note that clarity and completeness are worth 1 point on this assignment. 

Internet Assignment (5 points)

Using the framework developed by Sproull and Kiesler, describe the impact the Internet has had in our society. In particular, discuss the first- and second-level effects on:

    1. electronic group dynamics
    2. personal connections
    3. control and influence
    4. new ways of organizing.

If you quote or paraphrase them, be sure to include a page number citation. For example:

A two-level perspective emphasizes that technologies can have both efficiency effects and social system effects (p. 1).

Also note that, since their book focuses on the use of electronic mail, I encourage you to consider other applications (including mail-enabled ones) of the Internet in your illustrations.

Optional Extra Credit Assignment* (3 points)

Assume that you have four projects under consideration, A, B,C, and D. The cost, probability of success, and benefits associated with each are tabulated below. Assume that projects A and B cannot both be undertaken due to resource limitations and that project D can begin only in the second year. Also assume that the analysis period is two years. Finally, let E denote the decision of not investing in any project after the first year.

Project

Duration

Probability of Success

Annual revenue if successful

Annual revenue if failure

A

1 year

.9

$75,000

$40,000

B

1 year

.8

$80,000

$35,000

C

2 years

.6

$200,000

$50,000

D

1 year

.7

$140,000

$60,000

Develop the decision tree (1 point) and calculate the expected value of the alternatives (1 point). Which option(s) are the best? (1 point) Show all work.

* From Shtub et.al. (1989), Exercise #3-18.

TM600 Syllabus | TM600 Modules | Module 3