A Company Producing Apps for a Social Networking Site Is

question 44

Essay

A company producing apps for a social networking site is deciding which path to pursue. The first is to create an app that has universal appeal but faces a crowded market. This app, A, would have sales of 100,000 copies at $1 each under ideal conditions, but under tough conditions would have sales of only 60,000 copies at $.80 each. The other app, B, would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions. If ideal and rough conditions occur with the same frequency, which app should the company produce?
Note- both apps cost the same to develop.

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Definitions:

Charisma

A compelling attractiveness or charm that can inspire devotion in others, often seen as a quality of effective leaders.

Emotional Intelligence

The aptitude for identifying, overseeing, and expressing personal emotions, in addition to managing relationships with care and empathy.

Rational

Based on or in accordance with reason or logic; capable of reasoning or thinking clearly.

Logical Business Processes

Systematic sequences of activities or tasks that are carried out in a business to achieve a specific goal, ensuring efficiency and effectiveness in operations.