The Former Chairman of Nestlé Recently Told an Interviewer: "We

question 63

Multiple Choice

The former chairman of Nestlé recently told an interviewer: "We are food and beverages.We are not running bicycle shops.Even in food,we are not in all fields.There are certain areas we do not touch.Also,we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically?

• A)customer value
• B)competitive advantage
• C)focus
• D)myopia
• E)policy of dealing only with Swiss businesses

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Definitions:

Levels Of Activity

are the various stages or degrees of intensity at which a process or operation is carried out in an organization or system.

Flexible Budget

A budget that adjusts or changes in response to variations in actual activity levels, allowing for better cost control and planning.

Activity Levels

A measure of the amount of work or action in a particular context, such as in a business or exercise program.

Slack Season

A period during which demand for a business's products or services decreases, often leading to lower sales.