Dell Attempted to Maintain Its Long-Standing Low-Cost Position by Reducing

question 3

Multiple Choice

Dell attempted to maintain its long-standing low-cost position by reducing the number of technicians in its customer call centres.As a result,an increasing number of customers spent 30 minutes or more on hold before they found a technician to solve their problem.This affected Dell's customer satisfaction rating in the United States and its sales and profit growth stagnated.This scenario highlights:

• A)the increased importance of service
• B)strategic inertia
• C)the company's market-orientation focus
• D)the impact of information technology

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Definitions:

Discount Rate

The percent used for calculating a trade or cash discount. The interest percent charged by the buyer of a discounted note.

Actual Interest Rate

A rephrased term for the effective interest rate that takes into account the compounding period, fees, or other loan terms, providing a true cost of borrowing.

Actual Interest Rate

The actual rate of interest earned or paid on an investment, loan, or other financial product over a period, typically accounting for compounding.

Discount Method

A valuation technique where a future cash flow or series of cash flows is discounted back to the present to determine its worth.