Apply the Principles of Escalating Commitment to the Following Situation

question 63

Short Answer

Apply the principles of escalating commitment to the following situation to carry it forward in time, imagining what would happen next: You are a marketing manager at PrintCards where you have for ten years had the most successful software for creation of all types of cards in the home or office environment. However, PrintCards is finally faced with competition from a more powerful software package, new to the marketplace, that came in at a price of half that of PrintCards. PrintCards quickly began to lose market share, but initially made no adaptation. New product could not be delivered for months into the future because of the timing of the product development cycle. You made a decision not to change the pricing structure of PrintCards because of your department's analysis that the old higher pricing structure was fitting for a product with such high name recognition. Market share continued to decline.

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Definitions:

Uniform Durable Power

A legal document that grants another individual the authority to manage one’s financial and legal affairs even if the grantor becomes incapacitated.

Third Restatement

Refers to updates or revisions of fundamental legal principles in areas such as Torts, Contracts, Agency, Trusts, and Foreign Relations, established by the American Law Institute.

Accounts Collection

The process of pursuing payments of debts owed by individuals or businesses.

Actual Authority

The express or implied legal power granted by a principal to an agent to carry out specific tasks on the principal's behalf.