Why would a company create a knockoff of another product?
What will be an ideal response?
A knockoff product is a new product that copies, with slight modification, the design of an original product. Firms deliberately create knockoff products with the intent to sell to a larger or different market than consumers who would buy the original product.
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Because services are characterized by the inseparability of production and consumption, service organizations must be physically present when the service is delivered or engage others to be present
Indicate whether the statement is true or false
According to the text, the typical focus group costs the client about ________
A) $400 B) $2,000 C) $4,000 D) $6,500 E) $10,000
The Enhanced Products Division of Forrest Industries makes ceramic pots that are used to hold large decorative plants. During the current year, the division produced 10,000 pots and incurred the following costs:
*The equipment was purchased for $150,000 and has a current book value of $120,000, remaining useful life of four years, and a zero salvage value. If the company does not use the equipment, it can be leased for $8,000 per year.**Includes supervisors' salaries and rent for manufacturing plant. Required:The division is considering replacing the equipment used to manufacture its ceramic pots. Replacement equipment can be purchased at a price of
$200,000. The new equipment, which is expected to last 4 years and have a salvage value of $20,000, will reduce unit-level labor costs by 25 percent. Assuming the division desires to maintain its production and sales at 10,000 ceramic pots per year, prepare a schedule that shows the relevant cost of operating the existing equipment versus the cost of operating the new equipment. Should the existing equipment be replaced? Why or why not? What will be an ideal response?
Which of the following is not true about strategy?
a. It should be decided by focusing exclusively on the environment and its threats and opportunities b. Sometimes organizations just drift into a strategy c. What leaders say their strategy is and what they actually do is often different d. Strategy leads to the allocation of resources