Sears and Holiday Inn Encountered Difficult Times Because They Did

question 58

Multiple Choice

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________.

• A) niches
• B) jack-of-all-trades
• C) middle-of the roaders
• D) red oceans
• E) laggards

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Definitions:

Variable Manufacturing

Costs that vary directly with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.

Fixed Manufacturing

Expenses that do not vary with the level of production or sales, such as rent, salaries, and equipment depreciation.

Static Budget

A budget that does not change or adjust with variations in sales volume or business activity.

Original Planned

Pertains to the initial strategy or set of actions that were designed to achieve a specific outcome or goal.