Imagine a Confectionary Company Has Introduced a New Nutty Candy

question 7

Multiple Choice

Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S.business history) .Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?

• A)"We'd better do some market testing to determine why people are dissatisfied."
• B)"Perhaps we should make candy bars with raisins."
• C)"Let's put more aggressive salespeople in the field."
• D)"Let's lower the price and change the name."
• E)"Don't worry about it;we're the largest candy manufacturer in the area.Sooner or later they'll get hungry enough that they'll come to us."

---

Definitions:

Excess Capacity

A situation in which a company can produce more goods or services than the market demands, often leading to idle resources or reduced production rates.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Cycle Inventory

Inventory that is held to manage the normal fluctuation of production or supply and demand, rotating through cycles of replenishment.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring product availability.