71The following appeared in a memorandum from the new president of the Patriot car manufacturing company. In the past, the body styles of Patriot cars have been old-fashioned, and our cars have not sold as well as have our competitors cars. But now, since many regions in this country report rapid increases in the numbers of newly licensed drivers, we should be able to increase our share of the market by selling cars to this growing population. Thus, we should discontinue our oldest models and concentrate instead on manufacturing sporty cars. We can also improve the success of our marketing campaigns by switching our advertising to the Youth Advertising agency, which has successfully promoted the countrys leading soft drink. 72The following appeared in a memorandum from the owner of Armchair Video, a chain of video rental stores. Because of declining profits, we must reduce operating expenses at Armchair Videos ten video rental stores. Raising prices is not a good option, since we are famous for our special bargains. Instead, we should reduce our operating hours. Last month our store in downtown Marston reduced its hours by closing at 6:00 P.M. rather than 9:00 P.M. and reduced its overall inventory by no longer stocking any film released more than two years ago. Since we have received very few customer complaints about these new policies, we should now adopt them at all other Armchair Video stores as our best strategies for improving profits. |