Foodies, a food manufacturing company, made plans to either open a new outlet in Berylia, a country where the majority are low-income families, or Erbia, a country where the majority of the people belong to high-income families. It finally decides to open a new outlet in Berylia by offering products with reduced cost as the demand for its product is greater in Berylia. This scenario is an example of _____ in defining a strategy.

Question

Quizplus · Accepted Answer

Making trade-offs involves choosing between different options and sacrificing one for the other. In this scenario, Foodies had to choose between opening a new outlet in a country with high-income families or low-income families. By opting to open in Berylia, even though the majority are low-income families, the company is sacrificing the potential benefits of opening in Erbia. Therefore, the decision to open in Berylia involves making trade-offs.

Foodies, a Food Manufacturing Company, Made Plans to Either Open