Sales of the high-end units have declined. The owners want Arnold, the CEO, to increase revenues to previous levels. His first action should be ________.
A) to identify previous sales levels
B) to determine why sales are off
C) to compare costs for three new models under development
D) to immediately begin production on the lowest cost model

Question

Quizplus · Accepted Answer

Before taking any action, Arnold should first determine why sales are off. Identifying the root cause of the decline in sales will help him develop a more effective strategy to increase revenues, rather than blindly attempting to produce more units or cut costs without addressing the underlying issue.

Sales of the High-End Units Have Declined