问答题
2.Yvern is large region in the country of Gaulle. It is ethnically and culturally distinct from the rest of the country and ithas aspirations for independence. The desire for this independence is reflected by consumers in Yvern preferring tobuy products which have been produced in the region.
Yvern Trinkets Regional (YTR) is a manufacturer of giftware products aimed at the Yvern market. Its products arebought primarily by residents of Yvern and visitors to the Yvern region. It is the third largest company of its type inthe region, and the 50th largest producer of giftware in Gaulle. Its marketing message stresses the regional identityof the company and its employment of local skills and labour. It currently manufactures four products, designated hereas products A, B, C and D. The company does not sub-contract or outsource any element of production and it hasnever done so. Data concerning products A, B, C and D are given in Table one.
Table one: Production and marginal cost data for the YTR product range
YTR recently appointed a new managing director, born outside the region. He has been tasked with improving theprofitability of the company.
After a short period of consultation, the new managing director produced a proposal for the board. Here is an extractof his proposal.
First of all, we need to be clear about our generic strategy. Strategists have suggested that we have four alternatives.I have reproduced them in this slide (shown here as Table two).
Cost Leadership Differentiation
Cost Focus Differentiation Focus
Table two: Generic strategies
My vision for YTR is that we should pursue a cost leadershipstrategy. I have already established that our productscan be produced by an established company in the distant country of Tinglia at the following prices (see Table three).These costs include the delivery of products to our warehouse here in Yvern.
Table one: Production and marginal cost data for the YTR product range
YTR recently appointed a new managing director, born outside the region. He has been tasked with improving theprofitability of the company.
After a short period of consultation, the new managing director produced a proposal for the board. Here is an extractof his proposal.
First of all, we need to be clear about our generic strategy. Strategists have suggested that we have four alternatives.I have reproduced them in this slide (shown here as Table two).
Cost Leadership Differentiation
Cost Focus Differentiation Focus
Table two: Generic strategies
My vision for YTR is that we should pursue a cost leadershipstrategy. I have already established that our productscan be produced by an established company in the distant country of Tinglia at the following prices (see Table three).These costs include the delivery of products to our warehouse here in Yvern.
问答题
(a)Evaluate the claim that ‘all four products can be produced more cheaply by the supplier in Tinglia’ and discuss the issues raised by outsourcing the production of YTR’s products to Tinglia. (15 marks)
【正确答案】Here is a monthly analysis of the data given in the scenario.
【答案解析】
问答题
(b)Examine the relevance of each of the four generic strategies shown in Table two to the competitiveenvironment in which YTR operates and evaluate the choice of a cost leadership strategy by YTR’s managingdirector.(10 marks)
【正确答案】The managing director states that he wishes to follow a generic strategy of costleadership. However, it seems likely that hehas misunderstood the term or that he is knowingly using it as a euphemism for cost reduction. His slide missed out importantinformation.
【答案解析】