Some Companies Follow a Strategy of Sales Maximization

question 89

Essay

Some companies follow a strategy of sales maximization.They say that this puts them in close touch with their customers and they can better track the market, responding to needs more quickly.However, this increases costs because of the need to stock a wider variety of parts, sizes, colors, etc.What would make this strategy a profit-maximizing one?

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Definitions:

Fiedler's Contingency Theory

A leadership model proposing that effective leadership style is contingent upon situational demands, including the leader-member relations, task structure, and position power.

Need Structure

The specific set of needs or requirements that is essential for an organization or individual to thrive and succeed.

Effectiveness

The degree to which something is successful in producing a desired result or outcome; efficiency in achieving goals.

Employee-oriented

Describes management or leadership styles that prioritize the well-being, development, and engagement of employees over strict adherence to rules or production targets.