Decision

Component of Strategy

David is developing a strategy for his company that sells tour packages. He discovers that if his tours include rooms in no$-$frills hotels and provide only limited time with a guide at the destination, instead giving tour members brochures that suggest self$-$guided walking tours and popular tourist destinations they can find on their own, he can sell his packages for up to $25\%$ less than his major competitors do$.$ He plans to market his tours with inexpensive late$-$night infomercials.

Dreyfus manages a hair and beauty salon. To best position the salon to serve its neighborhood, he decides to hire only stylists trained in the care of African American hair and skin and stock only products aimed at African Americans.

An accounting firm has hired consultants to write proprietary financial management software that it uses to service its clients. It also uses unique accounting methodologies and has established a team$-$based structure that best leverages various employees' talents while maximizing accountability.