Question # 1:

Although all nine of the competitive priorities discussed in this chapter are relevant to a company’s success in the marketplace, explain why the company should not necessarily try to excel in all of them. What determines the choice of the competitive priorities that a company should emphasize for its key processes?

Answer:

Question # 2:

Suds and Duds Laundry washed and pressed the following number of dress shirts per week Week | Work Crew | Total Hours | Shirts | 1 | Sud and Dud | 24 | 68 | 2 | Sud and Jud | 46 | 130 | 3 | Sud, Dud & Jud | 62 | 152 | 4 | Sud, Dud & Jud | 51 | 125 | 5 | Dud and Jud | 45 | 131 |

a. Calculate the labour productivity ratio for each week b. Explain the labor
*…show more content…*

Because both costs and revenues are linear relationships, the break-even point is where the total revenue line crosses the total cost line.

In this given problem, we have

p = revenue per unit sold = $15 per client per month * 12 = $180 per client per year.

Q = 15,000 customers c = variable cost = $ 10 per month * 12 = $120 per year

Therefore,

Q=Fp-c

15,000=F180-120

F= $900,000 annual fixed cost

Question # 4:

Analyze the decision tree in Figure A.8. What is the expected payoff for the best alternative? First, be sure to infer the missing probabilities.

Answer:

Analysis of the decision tree begins with calculations of the expected payoffs from right to left. However, in this problem there are some of the probabilities are missing. We know that the total probability in a decision tree should be 1. Over here, we have three decision points. For the third decision point, we half to select either between $25, whose probability is 1or there is an event mode where we have to select between $30 whose probability is 0.4 and $20 whose probability is 0.6 because the remaining ratio left for 1 is 0.6.

Therefore,

[0.4(30)+0.6(20)] = [12+12] = [24]

So by having this value, we can now compare it with $25 and $24 and can make a decision at decision point 3. So we have selected $25.

Now there is another event node between $25 whose probability is

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