A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:
The company's strategy involves switching the production to a commodity-type product that can be sold on the open market when demand for special products drops. This pivot in production and the ability to sell to different markets demonstrates the use of multiple downstream channels. The focus here is on how the company adjusts its sales strategy and market approach to maintain cash flow, which aligns with the concept of having multiple downstream channels.
D. multiple upstream supply chains. The company mentioned in the scenario is able to switch its production line from manufacturing special products for select customers to producing a commodity-type product for the open market. This implies that they have multiple upstream supply chains in place. These supply chains provide the necessary raw materials and components to support the production of both the special products and the commodity-type product. By having multiple upstream supply chains, the company can efficiently source the materials required for each product line and adjust their production as needed to meet customer demand and market conditions.
C. multiple downstream channels. The corporate strategy described in the scenario involves the ability to switch the production line to a different product (commodity-type) and sell it on the open market at reduced terms to generate cash when demand for the original product drops. This strategy demonstrates having multiple downstream channels, as the company is able to pivot its production and sales to different products and markets based on changing demand conditions. This flexibility in product diversification and market access allows the company to adapt to changing customer needs and market conditions, which is indicative of a strategy that focuses on having multiple downstream channels.
I feel the abbey l answer should be C
Option "D" is correct as manufacturing is part of UP STREAM SC.
C wouldn't be correct because you are reacting to the demand by modifying the upstream SC. For C to be correct, there needs to be alternative options or channels that could absorb the decline in demand
commodity-type product that can be sold on the open market when demand for specialized products drops, the company is utilizing multiple downstream channels to maintain cash flow
Type of end product being different mean difference in raw materials and components to make it. So they would need different upstream supply chains setup to pull the different raw materials & components into the manufacturer. Thats how I interpreted the questions and thus answered D
Do we know the correct answer here? If it’s moving from manufacturing to the customer then shouldn’t it be multiple downstream? Confusing if these answers aren’t correct.
type of end product is different then how is it that multiple upstream supply chains can be answer?