The Digitec Company Has Recently Decided to Design and Manufacture

question 4

Multiple Choice

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy?

• A) Bottom of the pyramid strategy
• B) Skimming the barrel strategy
• C) Cream of the crop strategy
• D) Top of the peak strategy
• E) Base price strategy

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Definitions:

Internal Accounting Systems

The set of procedures and records that a company's management uses for financial planning, analysis, and decision making within the company.

Dysfunctional Results

Outcomes of processes or activities that negatively affect the goals or functioning of an organization.

External Failure Cost

Costs incurred when a defective product or service is discovered after delivery to the customer, including returns, repairs, and lost sales.

Prevention Costs

Costs incurred to prevent defective units before they are produced. For example, reengineering products or production processes.