Joe Sullivan and Mark Holland, Members of the Top Management

question 98

Multiple Choice

Joe Sullivan and Mark Holland, members of the top management at EuAir, a European airlines, were preparing for a meeting to discuss strategies to combat the recent rise in fuel prices. Before the meeting began, Joe and Mark were discussing how oil prices significantly impact the health of the world economy. Joe spoke of how higher oil prices since 1999, partly the result of OPEC supply management policies, contributed to the global economic downturn in 2000-2001 and have not been stable since. Mark agreed but added that the right kind of strategy could help them overcome this challenge, and that they could even use the situation to hike fares and generate additional revenues. Which of the following statements, if true, would denote the occurrence of groupshift in Mark's opinions during the meeting?

• A) Mark thought that EuAir should suspend some of its less profitable flights in the short run in favor of the routes that have greater demand among consumers.
• B) Mark proposed that this was an opportunity for EuAir to use its brand name effectively and diversify into other products and services.
• C) Mark agreed with Joe's opinion that providing the best service possible, even if it meant incurring a loss in the short run, would be the best strategy.
• D) Mark proposed that the prices be hiked and additional customer service measures be included so costumers have the best experience flying with EuAir.
• E) Mark encouraged the top-management team to consider laying off surplus employees and rightsizing EuAir to enhance its efficiency and lower costs.

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Definitions:

Diffusion

The process by which a cultural element is transmitted from one group or individual to another over time and space.

European Goods

Products and items produced in Europe, often traded to other parts of the world throughout history, significantly impacting global trade networks and indigenous cultures.

Northern Plains

A vast geographical area in the United States known for its flat terrain, grasslands, and significant historical and environmental importance.

Trade

The process of purchasing, selling, or trading goods and services among individuals or nations.