Consider the following series of independent situations in which a firm is about to make a strategic

Question:

Consider the following series of independent situations in which a firm is about to make a strategic decision.

Decisions

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.


Required

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.


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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133428704

15th edition

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

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