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Management Skills (Scenario) Gavin Clayton Is Vice-President of Product Development at Canadian Aircraft

question 96

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Management Skills (Scenario)
Gavin Clayton is vice-president of product development at Canadian Aircraft Manufacturing (CAM) . The company specializes in smaller civilian aircraft for commuter airlines and corporate executives. Gavin is trying to decide if the company should proceed in its plans to produce a new larger scale aircraft. He knows that the new aircraft supports the corporate strategy and will enhance their competitive position in the industry. As a former engineer with years of experience in aircraft design and production, he also knows that his company has the skills and capability to produce the new aircraft. In fact, he believes that the new larger aircraft will result in scale economies for CAM—allowing it to produce more profitable aircraft with roughly the same labour resources. Unfortunately, this could be a sore point with the labour union that represents the aircraft assembly workers. While Gavin has always maintained a good relationship with these workers, he knows they are suspicious of management's motives. If the workers perceive the new larger aircraft as a management ploy to increase worker productivity, they will resist the change. Management will definitely have to get the support of the union before they implement the new production plans. Gavin gazes out his window and ponders how best to proceed with the situation.
-Gavin's reliance on his previous engineering and design experience to assess their production capabilities best demonstrates which managerial skill?

Definitions:

Consumer Purchase Decision

The process by which individuals identify their needs, gather information, evaluate options, and make the decision to buy a product or service.

Information Search

The process of gathering data and details about a specific subject or decision-making need.

Problem Recognition

The initial step in the consumer decision process where the consumer identifies a need or realizes the difference between the current and a desired state.

Alternative Evaluation

The process in which consumers compare different products or brands on various attributes to make a purchasing decision.