You Are the Manager of Impromptu Printing, a Leading Print

question 11

Multiple Choice

You are the manager of Impromptu Printing, a leading print shop. Impromptu's resources include a highly experienced staff and state-of-the-art printing presses. However, your closest competition has started to cut into your market share by offering same-day turnaround on most orders. Although your staffing and equipment is not optimized for rapid production, you decide to start offering a same-day guarantee to your customers. According to the resource-based view, what is wrong with this decision?

• A) You have failed to take into account resource immobility.
• B) Customers tend to have negative opinions of firms that imitate other firms.
• C) Employees are often resistant to changes in strategy.
• D) Your business is not organized to capture value.

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Definitions:

Selling Price

The amount a customer pays to purchase a product or service.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Total Fixed Costs

Expenses that do not change with the level of production or sales over a short period, including rent, insurance, and salaries.

Activity Level

In cost accounting, this refers to the volume of production or operations, impacting variable costs and potentially influencing budgeting and performance measures.