Adriana Alvarado has decided to purchase a personal computer. She has narrowed the choices to two: Drantex
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1. What is the total product purchased by Adriana?
2. How does the strategic positioning differ for the two companies?
3. When asked why she decided to buy Confiar, Adriana responded, ‘‘I think that Confiar offers more value than Drantex.’’ What are the possible sources of this greater value? What implications does this have for the managerial accounting information system?
4. Suppose that Adriana’s decision was prompted mostly by the desire to receive the computer quickly. Informed that it was losing sales because of the longer time to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes.
These improvements decreased the number of defective units and the time required to produce its product. Consequently, delivery time and costs both decreased, and the company was able to lower its prices on Drantex. Explain how these actions translate into strengthening the competitive position of the Drantex PC relative to the Confiar PC. Also discuss the implications for the managerial accounting information system.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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