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25 Feb 2021, 23:30
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Reduce
Costs: Set research and development budgets to levels comparable to 5 years ago. Increase
Users: Offer free trials to customers purchasing their first Orange computer.
Costs: Set research and development budgets to levels comparable to 5 years ago. Increase
Users: Offer free trials to customers purchasing their first Orange computer.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
77% (02:17) correct
23%
(02:21)
wrong
based on 907
sessions
History
Date
Time
Result
Not Attempted Yet
Orange Computer Company builds high-quality personal computers for the mass market. Yearly focus groups consisting of existing owners of Orange computers have indicated that they find the computers very easier to use, stylish and more powerful than other computers they have purchased from other manufacturers and have continued to purchase Orange computers. Focus groups consisting of general computer users indicate that very few know of the Orange Computer brand and that most believe that Orange produces computers that are no better than any other computer manufacturer. In the last 5 years, Orange Computer has spent more and more money on research and development while reducing the prices for their computers. As a result, profits have been gradually declining.
In the first column of the table, select the strategy that, without any of the other alternatives listed, would be most effective in reducing their costs. In the second column, select the strategy that, without any of the other alternatives listed, would be most effective in increasing the number of users of Orange computers.
In the first column of the table, select the strategy that, without any of the other alternatives listed, would be most effective in reducing their costs. In the second column, select the strategy that, without any of the other alternatives listed, would be most effective in increasing the number of users of Orange computers.
|
Reduce Costs |
Increase Users |
|
| Outsource their research and development to a foreign country. | ||
| Offer discounts to existing owners of Orange computers who trade in their old computers for new ones. | ||
| Set research and development budgets to levels comparable to 5 years ago. | ||
| Offer free trials to customers purchasing their first Orange computer. | ||
| Expand their product line to also include phones and music players. |
ShowHide Answer
Official Answer
Reduce
Costs: Set research and development budgets to levels comparable to 5 years ago. Increase
Users: Offer free trials to customers purchasing their first Orange computer.
Costs: Set research and development budgets to levels comparable to 5 years ago. Increase
Users: Offer free trials to customers purchasing their first Orange computer.
04 Apr 2021, 20:49
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Reduce cost: Set research and development budgets to levels comparable to 5 years ago.
Offer free trials to customers
Outsourcing could also be the answer, but we don't know the cost and it's possible that the company is already outsourcing the R&D.
Increase users: Offer free trials to customers purchasing their first Orange computer.
Posted from my mobile device
Offer free trials to customers
Outsourcing could also be the answer, but we don't know the cost and it's possible that the company is already outsourcing the R&D.
Increase users: Offer free trials to customers purchasing their first Orange computer.
Posted from my mobile device
15 Mar 2022, 10:38
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Official Explanation
Reduce Costs: C
Increase Users: D
Solution: For the reduce costs column, notice that only one cost is even mentioned in the stimulus – the money that Orange has spent on research and development. So the correct answer must be C. For the increase users column, return to the specific Plan/Strategy objective in the question stem – it is to increase users of Orange computers. Choice B would not add new users, as it only applies to people who already use Orange computers. And Choice E would not add users of computers, as it talks about other products. Only choice D fits with the exact objective, so it is correct.
Reduce Costs: C
Increase Users: D
Solution: For the reduce costs column, notice that only one cost is even mentioned in the stimulus – the money that Orange has spent on research and development. So the correct answer must be C. For the increase users column, return to the specific Plan/Strategy objective in the question stem – it is to increase users of Orange computers. Choice B would not add new users, as it only applies to people who already use Orange computers. And Choice E would not add users of computers, as it talks about other products. Only choice D fits with the exact objective, so it is correct.
