Apple Decides to Reallocate Resources by Curtailing Online Ad Budgets

question 99

Multiple Choice

Apple decides to reallocate resources by curtailing online ad budgets and investing heavily in scratch-resistant Sapphire, the material that differentiates the Apple Watch from rival wearable computing device brands. What is MOST LIKELY the reason for Apple's reallocation of resources?

• A)making critical value chain activities less effective
• B)supporting the new strategic initiative of the brand
• C)signaling commitment to online sales of the brand
• D)signaling commitment to offline sales of the brand
• E)impeding the efforts of rivals to hoard Sapphire

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Definitions:

Maximin Criterion

A decision rule used in statistics and game theory that focuses on maximizing the minimum payoff or outcome attainable, often applied under conditions of uncertainty.

Expected Value of Perfect Information (EVPI)

A concept in decision theory that represents the maximum amount a decision-maker would be willing to pay for having perfect information before making a decision, highlighting the value of removing all uncertainty.

Prune the Branch

A strategy in decision-making and optimization processes that involves eliminating options or paths that are unlikely to lead to the best outcome.

Expected Value of Perfect Information (EVPI)

A concept in decision theory that quantifies the maximum worth of having precise and complete information when making a decision.