Consider the following series of independent situations in which a firm is about to make a strategic decision.
a. A popular restaurant is considering hiring and training inexperienced cooks. The restaurant will no longer hire experienced chefs.
b. An office supply store is considering adding a delivery service that its competitors do not have.
c. A regional airline is deciding whether to install technology that will allow passengers to check themselves in. This technology will reduce the number of desk clerks required inside the airport.
d. A local florist is considering hiring a horticulture specialist to help customers with gardening questions.

1. For each decision, state whether the company is following a cost leadership or a product differentia-tion strategy.
2. For each decision, discuss what information the managerial accountant can provide about the source of competitive advantage for these firms.

  • CreatedMay 14, 2014
  • Files Included
Post your question