An Interior Decorator Has Moved His Business from Los Angeles

question 111

Multiple Choice

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred her to St. Paul. The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." What is the decorator's problem?

• A) The decorator does not understand that customer needs are neither right nor wrong, good nor bad.
• B) The decorator has no core competencies that will transfer to his new geographic market.
• C) The decorator should choose a strategy of cost leadership in this environment.
• D) The decorator is highly affiliated with the new target market and understands how he can create value for it.

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Definitions:

Capital Equipment

Long-term, significant items of property used in the production of goods or services, such as machinery and buildings.

Labor Force

The total number of people employed or seeking employment in a particular region or economy.

Manufacturing And Operations

The processes involved in the production of goods and the management of those processes, aiming at efficiency and quality.

Skilled Workers

Employees who have specialized training, knowledge, and abilities in their field, often requiring formal education or certification.