Some Companies Follow a Strategy of Sales Maximization

question 173

Essay

Some companies follow a strategy of sales maximization.They say that this puts them in close touch with their customers and they can better track the market, responding to needs more quickly.However, this increases costs because of the need to stock a wider variety of parts and sizes and colors, etc.What would make this strategy a profit-maximizing one?

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Definitions:

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects employees' rights to organize and to bargain collectively with their employers.

ESOPs

Employee Stock Ownership Plans, an employee-owner program that provides workers with an ownership interest in the company.

Offensive Tool

A strategy or instrument used to proactively address challenges or pursue objectives aggressively.

Defensive Tool

Techniques or strategies employed to protect oneself, one's interests, or one's assets from threats or loss.