To Compete in the Automobile Market,Tesla Must Make Many Strategic

question 46

Multiple Choice

To compete in the automobile market,Tesla must make many strategic decisions such as whether to introduce a new car model,how to sell and service its cars,and where to advertise.At Tesla's Fremont,California plant,managers must decide on the monthly production quantities of their S and X models.In making this decision,the managers

• A)face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide.
• B)face a trade-off,because producing more of one model means producing less of the other.
• C)will choose to only produce the quantity of S and X models where marginal cost equals zero.
• D)will always decide on production quantities in which revenues are maximized.

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Definitions:

Consultative Selling

A sales approach focusing on creating value and trust with the customer, understanding their needs, and offering solutions to meet those needs.

Product Benefits

The positive outcomes or advantages that a consumer receives from using a product, which can include functional, emotional, and social benefits.

Long-Term Customers

Clients or customers who have been purchasing from or engaging with a business for an extended period, indicating loyalty and sustained revenue.

BCG Matrix

A strategic analysis tool that classifies business units or products into four categories (Stars, Cash Cows, Question Marks, Dogs) based on their market growth and market share.