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Complex problems in a global business · Part 3 of 4
1 exam-style question with model answers, plus 7 quick multi-choice questions — every question on this part of the standard, grouped by the 2 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Invented resource. Rāwhiti Tools can either (A) open a second distribution point in Lyon, costing $310,000 to establish and $9,000 a month to run, cutting delivery to French and Spanish stores from five days to two; or (B) increase stock held in Hamburg by 40%, costing $95,000 in additional inventory and $1,500 a month in extra storage, with delivery times unchanged. Rāwhiti Tools' stated goal is to grow its share of the southern European market.
Which option would you recommend? Justify your recommendation, including any new information.