A Firm Is Contemplating the Channel of Distribution for a Newly

question 46

Essay

A firm is contemplating the channel of distribution for a newly launched product.Since there is strong demand for the product,its expected profit of $500,000 are unaffected by the channel of distribution.If the firm opts to sell via a distributor,the probability of success is 2/5 and the cost incurred will be $10,000.If the firm opts for direct marketing,the probability of success is 3/5 and the cost incurred will be $20,000.Which method should the firm pursue first?

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Definitions:

Outsourcing

Contracting tasks to outside agencies or persons.

Employee Relations

The management and maintenance of the relationship between an organization and its employees, focusing on communication, conflict resolution, and employee satisfaction.

Organizational Goals

An organization’s short- and long-term outcomes that human resource management aims to support and enable.

Recruiting Advantage

A competitive edge an organization has in attracting and hiring talent, often arising from its reputation, benefits, career development opportunities, or workplace culture.