Gilroy Crackers enjoys a competitive advantage as a cost leader because high dem

Question

Gilroy Crackers enjoys a competitive advantage as a cost leader because high demand for its products has allowed it to operate at the minimum efficient scale. Which of the following scenarios would be most concerning to the managers of Gilroy Crackers? Multiple Choice Gilroy's leading competitor develops a new low-sodium product. Gilroy's most reliable production worker takes a job in another industry A major winter storm shuts down Gilroy's production for several days. A wheat shortage raises input costs across the industry

Explanation / Answer

I think the most concerning scenario to the managers of Gilroy Crackers would be: - A wheat shortage raises input costs across the industry. This is the most concerning because as the input cost will increase the output cost will also increase. Their product are highly demanded so in this case if they increase the price of the product or decrease the quality of product to cover the extra input cost will result in a negative image of the company. Customers will develop misconceptions as the demand is high the company started to raise price to earn more profit or decrease the quantity to make fool. Gilroy Crackers might lose the position of the cost leader because of this issue. Other scenarios are equally crucial but:-

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