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What is the key strategic issues when a firm is considering capacity expansion?
Suggested Answer: D
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Whether to expand capacity is a major strategic decision because of the capital required, the difficulty of forming accurate expectations, and the long time frame of the lead times and the commitment. The key forecasting problems are long-term demand and behavior of competitors. The key strategic issue is avoidance of industry overcapacity. Undercapacity in a portable industry trends to be a short-term issue. Profits ordinarily lure additional investors. Overcapacity trends to be a long-term problem because firms are more likely to compete intensely rather than reverse their expansion
11 comments · newest first
RO
Roxanne
11 months ago
Yeah, but how do you even forecast demand accurately?
FR
Frankie
12 months ago
Avoiding industry overcapacity? Really? Is that a big deal?
WI
Willis
12 months ago
Identifying options can make or break the expansion plan.
BR
Brendan
12 months ago
Totally agree, but competitor analysis is just as important.
ME
Melissa
1 year ago
Forecasting long-term demand is crucial!
SH
Shalon
1 year ago
Analyzing competitors might be important too, but I feel like it’s more about understanding demand first.
AD
Adria
1 year ago
Avoiding industry overcapacity seems like a big deal, especially after what we discussed in class about market saturation.
AL
Allene
1 year ago
I remember a practice question that emphasized identifying options for expansion, but I can't recall if that was the most important factor.
LO
Lonna
1 year ago
I think forecasting long-term demand is really crucial, but I'm not entirely sure how to balance that with competitor analysis.
WI
Willard
1 year ago
Okay, I've got this. The two steps I would take are enabling DMARC and creating an incoming content filter with SPF detection. That should help ensure the executive emails are coming from legitimate sources.
TR
Tran
1 year ago
I think the key here is to find where Salesforce provides the code coverage information for a specific class. Option C looks like the most direct way to view the code coverage percentage.