1. Which one of the following actions is least likely to result in lower production costs per branded pair at one of your company's plants?
A. The installation of plant upgrade option B
B. A 3% increase in the annual base wage that is accompanied by a 2.5% increase in worker productivity
C. Increased spending for best practices training
D. Reducing the number of branded models/styles produced from 350 to 250
E. A lower percentage use of superior materials
2. Which of the following would raise the degree of rivalry in an industry?
A. An increase in the growth in demand for the product.
B. None of these raise rivalry.
C. Excess production capacity.
D. The acquisition of several smaller companies by a few large companies in the industry.
E. A change in the production technology that reduces the fixed cost.
3. Stillwater, Oklahoma has a local brewery called Iron Monk started by an OSU MBA alumnus. Their beer is sold in bottles and on-tap in Stillwater and the retail price is more than Budweiser. To know whether Iron Monk is successfully differentiated from its competitors, you would need to know:
A. whether people think that Iron Monk tastes better than Budweiser.
B. whether people pay more for Iron Monk because it is locally brewed.
C. what Iron Monk’s production costs are compared to Budweiser.
D. all of the above.
E. none of the above.