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Fact 10.1.1 The Colvin Interview: Chrysler
The key driver of profitability will be that the focus of the company isn't on profitability. Our focus is on the customer. If we can find a way to give customers what they want better than anybody else, then what can stop us?
Source: Fortune, April 14, 2008
-Refer to Fact 10.1.1. In spite of what Chrysler's vice chairman and co-president claims, Chrysler's focus actually is on profitability because
A)all car firms are greedy.
B)without profitability the UAW will be unable to negotiate high enough wage rates for its members.
C)without a focus on profitability, Chrysler will either be eliminated from the market or taken over by another firm.
D)without a focus on profitability, Chrysler will face an unreasonably high implicit rental rate.
E)without profitability, Chrysler will not have enough money for research and development.

Question

Quizplus · Accepted Answer

The passage states that "without a way to give customers what they want better than anybody else", Chrysler will struggle. This implies that if Chrysler does not remain competitive and profitable, it will either be eliminated from the market or taken over by another firm. This shows that profitability is important to the survival of the company.

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