Professor Elam

In ACCT 3314 Managerial we study benchmarking. Benchmarking is the practice of emulating the best ideas of the leader in a particular field. Example, Toyota and Ford have about four model lines, GM has more than they could say grace over, guess what, GM will shortly have four or less.

I was trying to locate the Kieso intermed accouting text we will use for the fall ACCT 3311 class.

Go ahead, click on the hyperlink and give it a go. Confused, so was I…..

In marketing theory discusses product diversification. This is the idea that if you have a winner, you diversify and offer it in multiple forms. That way you prevent others from entering the market. The cereal companies, there are only two or three, and the cigarette companies, only two or three, did this in extremo,  dozens of brands all from the same three blanketing that aisle of the grocery making it tough to impossible for a competitor to get a foothold. Soap companies like PG or Lever do the same thing.

In some situations however it seems to me that this only breeds confusion. Dad once said that Ringling Brothers Circus experimented with three, then five, and finally seven simultaneous acts, or the seven ring circus. If three rings are good, seven is oh so much better right?  Wrong,  it was too much for the audience to follow. Circuses all went to three.

Sears pioneered catalog sales in the 1890s. Today this is known as internet sales, same thing. There is nothing new under the sun. Sears figured out that the Good, Better, Best three choice set up was the way to go. The ad tried to move the customer to the more expensive item, extolling the better virtues and features.

But I find the Wiley presentation like the seven ring circus.  I never could find the book I was seeking.

We shopped for a gps for the wife this weekend. Same thing, Garmin must have ten versions of the same thing. This is confusing for the customer and the sales person, and it means more production changes and setup costs at the factory.

Toyota

Good Scion

Better Corolla

Best  Camry Solara

GM

Chevy, Pontiac, Olds, Buick, Cadillac, Hummer, Saab, Saturn, GMC, Isuzu

Soon to be slenderized

Ford was

Ford, Mercury, Lincoln, Volvo, Aston Martin, Land Rover, Jaguar

Mulally has sold all the foreign makers but Volvo

Got it?