Consider the following series of independentsituations in which a firm is about to make a strategic decision.Decisionsa. Julian Phones is about to decide whether to launch production and sale of a cell phone with standardfeatures.b. Flint Computers is trying to decide whether to produce and sell a new home computer softwarepackage that includes the ability to interface with a thermostat and a refrigerator. There is no suchsoftware currently on the market.c. Maria Cosmetics has been asked to provide a “store brand” facial cream that will be sold at discountretail stores.d. Jansen Computers is considering developing a special line of computers that can be both a tablet anda computer.1. For each decision, state whether the company is following a cost leadership or a product differentiationstrategy.2. For each decision, discuss what information the management accountant can provide about the sourceof competitive advantage for these firms.
Consider the following series of independent
situations in which a firm is about to make a strategic decision.
Decisions
a. Julian Phones is about to decide whether to launch production and sale of a cell phone with standard
features.
b. Flint Computers is trying to decide whether to produce and sell a new home computer software
package that includes the ability to interface with a thermostat and a refrigerator. There is no such
software currently on the market.
c. Maria Cosmetics has been asked to provide a “store brand” facial cream that will be sold at discount
retail stores.
d. Jansen Computers is considering developing a special line of computers that can be both a tablet and
a computer.
1. For each decision, state whether the company is following a cost leadership or a product differentiation
strategy.
2. For each decision, discuss what information the
of competitive advantage for these firms.
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