The HITEA Company sells different kinds of milk tea products in Guangzhou. Marcus, the marketing manager,...

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The HITEA Company sells different kinds of milk tea products in Guangzhou. Marcus, the marketing manager, recently finds that many new milk tea companies arise in Guangzhou. Marcus then calls a meeting in the marketing department to discuss the problem. The following actions are made after the meeting (not in the order listed): a. The marketing team researches the prices and the types of milk tea products in other companies. The marketing team learns from a customer survey that they are not able to find a kind of milk tea with low caffeine in all the milk tea shops in Guangzhou. b. C. d. e. f. Marcus decides to cooperate with the Research and Development department to produce a kind of milk tea product with low caffeine. The customer survey indicates that the sales will increase by 30% once the low-caffeine milk tea is produced. Marcus raises his concern on the rising number of milk tea companies in Guangzhou. Marcus reports that 80% of the increase in sales this year comes from the new low-caffeine milk tea. Required: 1. Classify each of the decisions (a-f) according to its step in the five-step decision-making pro (6 marks) 2. Give two examples of other planning decisions and two examples of other control decisions that may be made at the HITEA Company. (8 marks) 3. Based on the information above, state whether the company is following a cost leadership or a product differentiation strategy. Give four examples of what other information the managerial accountant can provide to achieve the target strategy. (6 marks) The HITEA Company sells different kinds of milk tea products in Guangzhou. Marcus, the marketing manager, recently finds that many new milk tea companies arise in Guangzhou. Marcus then calls a meeting in the marketing department to discuss the problem. The following actions are made after the meeting (not in the order listed): a. The marketing team researches the prices and the types of milk tea products in other companies. The marketing team learns from a customer survey that they are not able to find a kind of milk tea with low caffeine in all the milk tea shops in Guangzhou. b. C. d. e. f. Marcus decides to cooperate with the Research and Development department to produce a kind of milk tea product with low caffeine. The customer survey indicates that the sales will increase by 30% once the low-caffeine milk tea is produced. Marcus raises his concern on the rising number of milk tea companies in Guangzhou. Marcus reports that 80% of the increase in sales this year comes from the new low-caffeine milk tea. Required: 1. Classify each of the decisions (a-f) according to its step in the five-step decision-making pro (6 marks) 2. Give two examples of other planning decisions and two examples of other control decisions that may be made at the HITEA Company. (8 marks) 3. Based on the information above, state whether the company is following a cost leadership or a product differentiation strategy. Give four examples of what other information the managerial accountant can provide to achieve the target strategy. (6 marks)

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