Question

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to scenario 1.4. Recently, darlene has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company's reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, darlene feels that the best option is to increase the company's ________________.

Answer 1

Jim is in the business of making Circuit boards and is well reputed for best quality of product as well as maintaining the best customer relationship by the collective effort of her and her team.

In the scenario given here, the temporary option is to increase the Production of the product to meet the demands from the existing satisfied customers who will buy the products from them again. But this is not the permanent solution, because the market gets saturated and there will be no room for the new installations. So they will somehow have to move towards expanding their business in other areas and cities. They will constantly have to catch up new clients for running their business activities.

Secondly they can increase their range of products. This will help them in generating more revenue for the company.

Answer 2

Answer: Production

Explanation: Jim has been concentrating on providing the quality product. He puts more effort in improving the quality of the service. Now, due to the maintenance of his quality, the customers he already has will be retained. As Darlene noticed that many of the customers they have are trying to expand, so the type of approach best suited for the company will be production.