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Refer to the Scenario Below to Answer the Following Questions

question 108

Multiple Choice

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.
-The fact that Gavin has always maintained a good relationship with the assembly workers is evidence of which managerial skill?

Definitions:

Market Skimming

A pricing strategy where a firm charges the highest initial price that customers will pay and then lowers it over time as the demand of the first set of customers is satisfied.

Product Innovation

The process of creating new or significantly improved products, enhancing their features, functionality, or design to meet consumer needs or open new markets.

Product Positioning

The process of determining the place a product occupies in consumers' minds relative to competing offerings, focusing on perceptions, impressions, and benefits.

Cost-Volume-Profit Analysis

An accounting methodology used to estimate the impact of varying levels of costs and volume on operational profit.