As General Manager of a Local Restaurant Chain, You Have

question 21

Multiple Choice

As general manager of a local restaurant chain, you have been asked to develop defensive moves to protect your company's market position and restrict any challenger's options for initiating a competitive attack. You would present all but ONE of the following strategic options to your executive team.

• A)Challenge struggling runner-up restaurants that are on the verge of going under.
• B)Grant volume discounts or better financing terms to dealers/distributors and provide discount coupons to customers to help discourage them from frequenting other local restaurants.
• C)Signal to challengers and new entrants in the local restaurant industry that retaliation is likely in the event they launch an attack.
• D)Publicly commit your restaurant chain to a policy of matching a competitor's terms or prices or breadth of menu items.
• E)Maintain a war chest of cash and/or marketable securities.

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Definitions:

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Fresh data or insights that have not been previously available or considered, commonly impacting financial markets and investment decisions.

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The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.

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