Apex Corporation Manufactures a Complete Line of High Quality Bits

question 47

Essay

Apex Corporation manufactures a complete line of high quality bits for electric drills. Apex has a good record for product innovation and effective marketing and distribution. An increase in domestic and international competition during the past two years has limited the firm's sales growth to 3 percent per year, down from the previous five-year average annual growth of 5 percent. In addition, market share declined by 0.5 percent this past year. Apex is experiencing profit reductions caused by price competition and manufacturing cost increases.
Required:
Choose one of the 13 contemporary management techniques introduced in Chapter 1: Explain why the technique you selected is appropriate in helping Apex develop a plan for reversing the decline in sales growth and controlling the growth in costs.

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Definitions:

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, derived from the decomposed remains of plants and animals, used primarily for energy.

Subsidies

Financial support provided by governments to lower the cost of goods and services or to support industries seen as vital to the economy.

Tax Breaks

Financial incentives or reductions in taxation aimed at encouraging certain activities or investments, or to benefit individuals or corporations in specific ways.

Fossil-fuel Processing Industries

Industries involved in the refinement and conversion of fossil fuels into usable products such as gasoline, diesel, and other energy sources.