Bobby Has Decided on a Conversion Strategy to the New

question 151

Multiple Choice

Bobby has decided on a conversion strategy to the new system.In this strategy,he will introduce the new system in stages,either by functions or by organizational units.If,for example,the system is introduced by functions,a new payroll system might begin with hourly workers who are paid weekly,followed six months later by adding salaried employees (who are paid monthly) to the system.If the system is introduced by organizational units,corporate headquarters might be converted first,followed by outlying operating units four months later.Which conversion strategy are they employing?

• A)phased approach strategy
• B)pilot study strategy
• C)direct cutover strategy
• D)parallel strategy

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Definitions:

Market Entry

The process by which a firm enters into a new market to compete and offer goods or services.

Price Falls

A decrease in the monetary value or market price of goods, services, or assets.

Producer Surplus

the difference between what producers are willing to accept for a good or service versus what they actually receive, due to higher market prices.

Market Entry

The act of beginning to sell goods or services in a new market.