Joe Sullivan and Mark Holland, Members of the Top Management

question 3

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. 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 weaken the argument that Mark experienced groupshift in the meeting?

• A) Mark argued that implementing a price rise was necessary to recover the costs in operating the flights.
• B) Mark stated that the company should increase operations but at lower fares so they can regain control over the market share.
• C) Mark believed that most of their clientele was not price sensitive.
• D) Mark stated that oil suppliers were going to pressure them even more in the future and the company had to resort to alternatives like bio fuels.
• E) Mark recommended that the company should establish a fuel hedging contract with its key suppliers to ensure protection from fuel price rises.