Which of the Following Is Not an Option for Remedying

question 19

Multiple Choice

Which of the following is not an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers) ?

• A) Shifting to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets
• B) Trying to make up the difference by cutting costs earlier in the value chain
• C) Pressuring distributors-dealers and other forward channel allies to reduce their costs and markups so as to make the final price to buyers more competitive with the prices of rivals
• D) Insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors-dealers
• E) Working closely with forward channel allies to identify win-win opportunities to reduce costs

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Definitions:

Equipment

Tangible assets used in operations, not intended for sale, that have a useful life of more than one year.

Supplies

Consumable items or materials used in the day-to-day operations of a business.

Investments

Assets that are purchased with the expectation that they will generate income or appreciate in the future.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm’s financial condition.