Final answer:
The shoe factory converts from manufacturing tennis shoes to dress shoes in order to make a greater profit by targeting a different market segment and potentially charging higher prices for the dress shoes. If there is a higher demand for dress shoes compared to tennis shoes.
Step-by-step explanation:
In this scenario, the shoe factory is making a strategic decision to switch from manufacturing tennis shoes to dress shoes in order to increase its profit. By shifting its production to dress shoes, the factory hopes to target a different market segment and potentially charge higher prices for the dress shoes, resulting in greater profit margins. This decision is based on the factory's assessment of market demand and profitability, and it aligns with the principles of business strategy and maximizing financial outcomes.
The decision of a shoe factory to switch from manufacturing tennis shoes to dress shoes with the aim of making a greater profit is an example of a strategic business decision. This decision may be driven by various factors, such as market demand, profitability analysis, or changes in consumer preferences. The decision may also be influenced by the competitive landscape. If there is less competition or a higher profit margin in the dress shoe market, the factory may choose to specialize in that niche. If there is a shift in consumer preferences towards dress shoes, the factory may adapt its production to meet the changing market demand and consumer trends.