When Setting Prices, a Leading Manufacturer of Nutritional Supplements Decided

question 84

Multiple Choice

When setting prices, a leading manufacturer of nutritional supplements decided to institute a pricing strategy that would support a five percent increase in sales over the next three years. What type of pricing objective has the company set?

• A) profit
• B) sales
• C) competitive effect
• D) cost-plus
• E) value

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Definitions:

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is considered the father of scientific management.

Bureaucratic Organizations

Organizations characterized by strict rules, hierarchical relationships, and a focus on procedure and protocol over flexibility and adaptability.

Weber

Refers to Max Weber, a German sociologist and political economist whose theories significantly contributed to the study of sociology and the analysis of bureaucracy.

Historical Management

The study of the evolution of management theories, practices, and principles through time.