Plas-Tex Exporting (Scenario) Plas-Tex Plastic Company Manufactures Plastic Storage Containers of All Different

question 42

Multiple Choice

Plas-Tex Exporting (Scenario)
Plas-Tex Plastic Company manufactures plastic storage containers of all different sizes. Plas-Tex has been exporting more storage containers to Europe recently because of the depreciation of the U.S. dollar relative to the euro. Plas-Tex CEO, Wayne Chisholm, has prepared a report for the annual shareholders meeting in which he outlines his manufacturing and sales recommendations for the upcoming year.
-Which of the following should be considered closely before Chisholm recommends increasing production to take advantage of the current exchange rate?

• A) What is the expected outcome of Plas-Tex negotiations with an Asian manufacturer?
• B) How much revenue did Plas-Tex generate from European sales last year?
• C) What will be the effect on Plas-Tex if the euro depreciates more than the U.S. dollar?
• D) What has been the historic impact of capital flight on Plas-Tex revenues?

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Definitions:

Contingency Approach

A management theory that suggests the best way to manage an organization depends on the specific circumstances of the situation.

Organizational Design

The process of structuring an organization's roles, responsibilities, and resources to achieve its goals efficiently.

Demands of the Situation

The requirements or challenges inherent in a particular context or scenario that influence how one needs to act or respond.

Situational Factors

External influences that affect an individual's behavior or decision-making process, often considered in marketing to understand consumer behavior in different contexts.