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Scenario 15.2 Use the Following to Answer the Questions

question 135

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Scenario 15.2
Use the following to answer the questions.
Star Supplies,Inc.manufactures commercial-grade floor cleaners,such as vacuums and floor polishers.The firm has recently begun manufacturing other janitorial-related product lines,such as paper products and chemical cleaners.Star Supplies distributes its products in two ways.It sells its vacuum,floor polisher,and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region.Also,Star has a list of large businesses that it distributes to directly,on an as-needed basis.These businesses keep very little inventory and purchase janitorial supplies in small quantities.Recently,Star has decided to add new two new service product lines-paper shredding and a uniform rental service.Clint Rodriguez,the marketing manager,is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses.Star has the choice of marketing the paper shredding service to their large business clients,by picking up the paper as they drop off the other janitorial supplies,or they can buy a small paper shredding business and market to both large and small business customers.With regard to the uniform rental service,Star can either pick up and deliver the uniforms to the small businesses themselves,or contract that out to a third party.
-Refer to Scenario 15.2.When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers,he was suggesting a method called ____,where Star would be the ____.

Definitions:

Sales Opportunity

A situation or instance where there is a potential for a business to sell its products or services, often identified through marketing and analysis.

Inflation-Adjusted

Describes values that have been adjusted for inflation, often to compare the real purchasing power of money or to reflect the real value of earnings or assets over time.

Exchange Rate

The price of one country's currency expressed in another country's currency.

Purchasing-Power Ratio

The relative value of two currencies in terms of their ability to purchase a specific set of goods and services.