Addams Coaches Inc

question 23

Multiple Choice

Addams Coaches Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Addams pursue instead?

• A) Create a strategic group through mergers.
• B) Compete based on inter-group rivalry, not intra-group rivalry.
• C) Pursue a differentiated strategy.
• D) Close the business until the cost of gas decreases.

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Definitions:

Price of Land

The financial value assigned to a piece of land, influenced by its location, size, and use.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or society.

Apprentice Welder

An individual in the early stage of their career learning the craft of welding under the supervision of experienced welders.

On-the-Job Training

Training that occurs within the workplace while the employee is performing their actual job duties, often under the supervision of a more experienced colleague.