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As General Manager of a Local Restaurant Chain, You Have

Question 21

Multiple Choice

As general manager of a local restaurant chain, you have been asked to develop defensive moves to protect your company's market position and restrict any challenger's options for initiating a competitive attack. You would present all but ONE of the following strategic options to your executive team.


A) Challenge struggling runner-up restaurants that are on the verge of going under.
B) Grant volume discounts or better financing terms to dealers/distributors and provide discount coupons to customers to help discourage them from frequenting other local restaurants.
C) Signal to challengers and new entrants in the local restaurant industry that retaliation is likely in the event they launch an attack.
D) Publicly commit your restaurant chain to a policy of matching a competitor's terms or prices or breadth of menu items.
E) Maintain a war chest of cash and/or marketable securities.

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