A Small Parts Manufacturer Has Just Engineered a New Product

question 30

Multiple Choice

A small parts manufacturer has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand,with probabilities of 0.6 and 0.4,respectively.The following payoff table describes the company's decision situation. The best decision according to the expected value criterion is

• A)Acquire Competitor.
• B)Expand Facilities.
• C)Subcontract Production.
• D)High Demand

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Definitions:

Transactional Leader

A leadership style that focuses on the role of supervision, organization, and group performance based on a system of rewards and punishments.

Regulating Behavior

The act of controlling or directing actions or conduct according to certain standards or rules.

Followership Theory

A conceptual framework focusing on the behaviors, attitudes, and roles of followers in the leadership process and their impact on organizational outcomes.

Alienated Followers

Individuals within a group or organization who feel estranged or disconnected from leadership and the collective goals, often due to perceived neglect or misunderstanding.