Johnson Controls Can Receive an Order for Automobile Seats from Ford

question 80

Multiple Choice

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. To accomplish this, Johnson Controls must

• A) focus on strong logistics for its customers.
• B) provide Ford with a cost-effective dual distribution system.
• C) increase the number of steps in the value proposition creation process.
• D) establish itself in the role of channel captain.
• E) avoid interfering with influence Ford's supply chain.

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Definitions:

Adam Smith

Was an 18th-century Scottish economist and philosopher, known as the "father of modern economics" for his influential work on the nature and causes of the wealth of nations.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output decreasing with increasing scale.

Marginal Output

Refers to the additional output that results from using one more unit of a production input, such as labor or capital, in the production process.

Total Output

The total quantity of goods and services produced in an economy during a given period.