Analyzing Information

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Looking for clues

Good strategists know where to get the information that they need. Can you determine which information is useful to developing a new strategy?

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Richard, a project manager at Wilmont Brothers furniture company, resolves to investigate other information sources that may factor into his strategic thinking.

He recalls something that a friend said while moving into a new house: "I wish there were more furniture options for people like me. I'm willing to pay for modern style, but I can't afford custom-made furniture."

Richard wants to tailor his strategy to customers like his friend. Where could he go to learn more about their needs? Evaluate each option.

At Sales, Richard can learn which Wilmont Brothers products sell best, and gather demographic information describing the typical buyer of each product.

Should Richard speak to Sales to find out more about his customers' needs?

Correct choice. The sales team has valuable insight into customer preferences and spending power.


Not the best choice. The sales team has valuable insight into customer preferences and spending power.


Currently, most of the staff at the central office is reviewing information on Wilmont's competitors and their prospective strategies for the new year.

Should Richard speak to the Office to find out more about his customers' needs?

Correct choice. Knowledge of Wilmont Brothers' competitors' strategies will help Richard formulate a successful strategy for producing and marketing affordable, stylish furniture.


Not the best choice. Knowledge of Wilmont Brothers' competitors' strategies will help Richard formulate a successful strategy for producing and marketing affordable, stylish furniture.


There is a meeting at the central office between Wilmont's executive staff and some established furniture designers that the company is eager to work with.

Should Richard attend the meeting to find out more about his customers' needs?

Correct choice. Furniture designers can suggest alternative materials and designs that can lower production costs, making Wilmont's furniture options more affordable.


Not the best choice. Furniture designers can suggest alternative materials and designs that can lower production costs, making Wilmont's furniture options more affordable.


Wilmont's shipping department also handles returns, which often puts them on the front line of customer satisfaction issues.

Should Richard speak to Shipping to find out more about his customers' needs?

Not the best choice. Customer returns that are handled by the shipping department are likely to relate to product quality or durability, rather than price or whether the furniture is considered stylish.


Correct choice. Customer returns that are handled by the shipping department are likely to relate to product quality or durability, rather than price or whether the furniture is considered stylish.


The factory has information on prospective production costs for any new product line that the company might introduce.

Should Richard speak to the Factory to find out more about his customers' needs?

Correct choice. Keeping production costs low is key to being able to price the new furniture line at an affordable price.


Not the best choice. Keeping production costs low is key to being able to price the new furniture line at an affordable price.


Wilmont Brothers has good relationships with the many retail stores that sell its furniture, and Richard knows the managers of some of these stores personally.

Should Richard speak to Retail to find out more about his customers' needs?

Correct choice. At retail stores, Richard can observe customers, see what kind of furniture sells particularly well, and get a sense of what prices customers are willing to pay.


Not the best choice. At retail stores, Richard can observe customers, see what kind of furniture sells particularly well, and get a sense of what prices customers are willing to pay.


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