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Refer to the Scenario Below to Answer the Following Questions

question 114

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Refer to the scenario below to answer the following questions.
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.
-When Gavin knew that the new aircraft would support the corporate strategy, he was utilizing which managerial skill?


Definitions:

Agricultural Cooperatives

These are organizations formed by farmers to pool resources and collectively process, market, and distribute agricultural products, aiming to achieve better pricing and efficiency.

Clayton Act

A U.S. antitrust law enacted to prevent anti-competitive practices in their incipiency and to supplement the Sherman Antitrust Act.

Quantitative Substantiality Test

A legal assessment method used to evaluate the significance or amount of material copied in copyright infringement cases.

Tampa Electric Co.

Tampa Electric Company is an energy company providing electricity to the Tampa Bay area and other parts of Florida.

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