Ronald's Has Been in the Fast-Food Business for Five Years

question 27

Multiple Choice

Ronald's has been in the fast-food business for five years. After struggling for two years, it finally broke even, and the french fries it offers are its most popular product. However, during the past year, its business has suffered because the farm that used to supply it with potatoes has increased its prices drastically. What should Ronald's do to control production costs?

• A) Reorganize the organizational hierarchy to increase efficiency.
• B) Buy out the farm and become its own supplier.
• C) Open more distribution outlets.
• D) Broaden the product range by introducing potato nuggets on its menu.
• E) Hire more efficient outlet managers.