Your marketing staff (again) wants to invest $20 million in advertising to increase consumer willingness to pay per unit by a projected 6%. Your operations staff (again) wants to invest $20 million on a technology that will reduce production cost per unit by 5%. As Director of Strategic Plann you are responsible for allocating resources to these subordinate functions. Which of the following recommendations and rationales should you offer the CEO if her goal is to create a long-run sustainable competitive advantage over rivals? O A. The marketing staff should be supported because consumers view all producers' offerings as homogenous. B. The marketing staff should be supported because a 6% increase in willingness to pay per unit exceeds a 5% decrease in cost per unit. O C. The marketing staff should be supported because buyer switching costs are low. O D. The operations staff should be supported because industry producers compete primarily on price. O E. The operations staff should be supported because the technology is incompatible with all rivals' production processes. O F. The operations staff should be supported because the technology can be resold to another firm if cost savings are not realized.

Your marketing staff (again) wants to invest $20 million in advertising to increase consumer willingness to pay per unit by a projected 6%. Your operations staff (again) wants to invest $20 million on a technology that will reduce production cost per unit by 5%. As Director of Strategic Plann you are responsible for allocating resources to these subordinate functions. Which of the following recommendations and rationales should you offer the CEO if her goal is to create a long-run sustainable competitive advantage over rivals? O A. The marketing staff should be supported because consumers view all producers' offerings as homogenous. B. The marketing staff should be supported because a 6% increase in willingness to pay per unit exceeds a 5% decrease in cost per unit. O C. The marketing staff should be supported because buyer switching costs are low. O D. The operations staff should be supported because industry producers compete primarily on price. O E. The operations staff should be supported because the technology is incompatible with all rivals' production processes. O F. The operations staff should be supported because the technology can be resold to another firm if cost savings are not realized.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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