Chapter 5 Powerpoint:

Question 1

Determine Revenue and cost structure

Answer 1

Determine how much money your going to make and substract it from the cost to make product and operating expenses to calculate profit.

Question 2

Choose strategy

Answer 2

Choose a stragety that creates the cheapest, fastest and best products available.

Question 3

Create culture

Answer 3

Create culture based on company values and structure: how company is organized and hire employees who fit in with this culture.

Question 4

Plan growth drivers

Answer 4

Expand through:

1. Geographic expansion
2. Franchise expansion
3. Product Mix-variety of products leads to more revenue