Scenario 2-1 As One of the World's Largest Computer and Technology Developers

question 88

Multiple Choice

Scenario 2-1
As one of the world's largest computer and technology developers, Dell, Inc.has never been a stranger to advertising.However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years.In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market.However, the company's new ad campaign, which will be targeted toward more high-end users, will make no mention of product price.The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign.
-(Scenario 2­1) In order to reinvent the company's image, Dell puts together a team comprising members from its marketing department who will be responsible for every aspect of the advertising campaign.The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign.This team will be an example of a(n) :

• A)creative boutique.
• B)full-service advertising agency.
• C)fulfillment center.
• D)in-house agency.

---

Definitions:

Future Cash Flows

Estimates of the amount of money to be received or paid out in the future by an entity.

Negative NPVs

Instances where the Net Present Value (NPV) of a project or investment is below zero, indicating that the expected cash flows are not sufficient to cover the initial investment.

Shareholder Wealth

The overall value of an investment in a company held by its shareholders, often measured by stock price appreciation and dividends.

Average Return

The simple mathematical average of a series of returns generated over a period of time.