Question

Igor's Furniture has seen its profit margins shrink over the past several years as increased competition has driven down furniture prices. You have been tasked with improving the company's margins. Which of the following approaches makes the most sense within the context of strategic activity systems?

a. Go against the trend and raise prices.b. Install modern manufacturing equipment to improve efficiency.c. Increase spending on online marketing efforts.d. Focus on imitating the most successful products of competitors

Answer 1

Letter b is correct. Install modern manufacturing equipment to improve efficiency.

Step-by-step explanation:

By installing modern manufacturing equipment to improve efficiency, Igor's Furniture is taking a strategic activity as modern manufacturing equipment consequently increases process and product quality, which increases product safety and quality, maximizes product lead times. delivery, reduces waste and costs, which ensures greater returns on efficiency, consumer insight and increased business competitiveness.