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Guidelines for the evaluation of new product investments in the South African passenger car industry

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dc.contributor.author Jones BE en
dc.date.accessioned 2016-09-22T09:16:44Z
dc.date.available 2016-09-22T09:16:44Z
dc.date.submitted 1978 en
dc.identifier.uri http://hdl.handle.net/20.500.11892/52696
dc.description.abstract Provides a formal framework for evaluating benefits, risks and costs of committing resources to a new car product as well as a means for choosing amongst alternative candidates. The problem of new product investments in general and the South African automotive industry in particular is discussed. The car industry environment is investigated by tracing the historical development of the industry up to its present stage. The competitive, legal and technological framework in which the South African car manufacturer operates is discussed. Techniques for the financial appraisal of the capital investment are compared and illustrated. Major factors influencing demand for new cars are presented and techniques for deriving demand illustrated. The study reviews revenue, variable costs, incremental fixed costs and changes in working capital which will arise from the addition of a new car product. The concept of opportunity costs relating to use of existing assets for a particular programme is discussed. Further aspects discussed include: marketing of replacement parts; wholesale and retail financing; dealer profitability and Corporate profits in the case of the Multinationals. Considerations in the case of product improvements vis-�-vis an all new product are reviewed. The current problems of the industry, in retrospect, have been largely precipitated by Government interference in the free market process and the current depressed economic climate. It is, however, postulated that the industry's predicament is to a certain degree self-inflicted through insufficient attention to the formal economic analysis of the decision to add new product. en
dc.language English en
dc.subject Business administration / Business leadership en
dc.subject Management economics en
dc.title Guidelines for the evaluation of new product investments in the South African passenger car industry en
dc.type Masters degree en
dc.description.degree MBA en


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