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‘The furniture company today announced that it will offer three special discount deals for customers as well as a trail for a new colour material for its dining chairs.’ Quote from a newspaper article. Are these tactical or strategic decisions? Explain your answer.

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According to you, which business has competitive advantage? Why?

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Question 3 for LO3 (All must do at least 1)

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Question 3 for LO3 (All must do at least 1)

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1. Outline how a computer manufacturing company’s decision to attempt to become the lowest- cost producer in the industry might impact on its organizational structure.

2. Why might it be an advantage to create a decentralized organizational structure when a company starts operating in more than one country?

3. Explain, with business examples, the difference between the two approaches to competitive advantage: cost advantage and differentiation

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Tactical Decision- Because the company in the future they will offer three special deals for new colors material . As the offer is only short term decision as it could be reversible and may involve cost which in further if the promotion fails they will have less income

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Aashish
It is a tactical decision because a sales promotion is a short term decision and is taken usually by manager and not the people at the highest level of hierarchy

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Tactical decision are short term decisions. Special discounts are for a limited period of time which means these decisions are only for short term period and will change over time.

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This is a strategic decision, because it would require all the departments view point while creating the new colour material, also it seems to be a long term decision.

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This is a tactical decision as special discount deal usually tend to be for a short period of time such as for a season.

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Tactical decision. It is a tactical decision because the furniture company would provide three special discounts for the customers. Discounts are made to be only for a short period of time. Products that’s been given a discount can be changed over time later in the future.

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the newspaper quotes a tactical decision as it only focuses on one aspect of the marketing function, promotion.

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This is a tactical decisions as special discount is a short term decision taken to generate revenue for day to day expenses because the offer is basically a short-term decision it may be changeable and may involve costs, they will have less revenue generated if the promotion fails.

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This is a tactical decision as tactical decisions are actions to achieve short term goals. Special discounts can only be used for a short period of time, otherwise a business may experience a loss. Additionally, a new color material for dining chairs can be achieved within a few months or a year.

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This is a tactical decision as the decision taken by the functional department and is achievable in short term.

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the business in pic 1 has the competitive advantage as they have added value to their ambiance which is a great way to increase footfall. however, the business in pic 2 might be leading in terms of cost advantage as they

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Pic 1 has a competitive advantage as the ambience of the place creates value. Additionally, the set up and furniture leads to visitors feeling  sense of richness.

However, Pic 2 may also have a competitive advantage if the product being sold can be a unique item.

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Pic 1 has a competitive advantage as it give a luxury feel  (differentiation in terms of decor) which could provide value to the customers.

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Aashish
The first business at sight seems to serve niche cuisine and differentiated food items that will marketed mostly as high quality food.
Whereas the first business would serve variety of undifferentiated food items and keep the cost low.
Thereby i believe that the first restaurant has differentiated advantage and the second one has cost advantage.

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Pic 1 has a more competitive advantage as it has a very appealing interior, this could be a differentiation advantage as it looks very attractive. This could draw in more customers.

But in term of costs, Pic 2 has a cost advantage as it wouldnt have as much of maintenance costs, which could lead to lower prices, giving people value for money

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Where as the picture 1 have a very beautiful interior design this means they offer lower quality services

Picture 2 -has a competitive advantage  as the decoration are simple yet look good at first glance . The decoration maybe be outdated but the restaurant might offer better services and provide value .

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In my opinion both business might have the competitive advantage in their own ways. picture 1 is most likely to have differentiation advantage as the ambience and setting of the restaurant seems to be much more stylish and elegant than the picture 2 therefore leading to have more costs as well. However picture 2 might benefit from cost advantage since it looks similar to the restaurants around them the value they've added could be due to the different cuisines offered.

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Pic 1 has likely to have differentiation advantage as the restaurant uses a high quality of luxury setup which adds overall value to the restaurant itself and can successfully catch the attention of the customer

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Picture 1 has a competitive advantage as the layout of the business gives customer a luxury feel makimg them more valued and therefore customer satisfaction is achieved.

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Picture 1 has the competitive advantage as it has higher looking quality products and the environment is well furnished than picture 2. It catches the customers eyes of being a well branded restaurant.

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Abdulqadir
The business in pic 1 will have differentiation advantage as the range of foods offered will be different,and it will have a different atmosphere. However the business in pic 2 will have a cost advantage as it will be offering food for a lower price.