Question

Seymour Semiconductors is a major global player in the semiconductor and microchip industry. In the space that they compete in, there is tremendous technological uncertainty as disruptive innovations seemingly come out of nowhere to upend well-entrenched incumbents. These disruptions are often fast and are increasingly by companies that do not compete head-to-head with Seymour Semiconductors. In addition, market tastes for the end products that feature Seymour Semiconductors' components also change rapidly. The company was hurt financially when the market shifted away from personal computers (that accounted for a significant portion of Seymour Semiconductors' revenues), first to tablets, and then to other mobile devices. The company's new CEO, Lisa Monroe, has decided that the company's basic approach to strategy should change. Toward this, she has mandated that, at any point in time, Seymour Semiconductors should be able to choose from several different strategic options instead of a fixed and planned course of action that the company has pursued since it beginning. One of her mandates called for the company's future manufacturing plants to be built with the ability to add capacity at a low cost. In addition, she wants to lay off 1,000 of the company's employees and hire contract and temporary workers in their stead. Finally, Monroe wants the company to use the real options approach to manage the combination of technological and market uncertainties.
Lisa Monroe's mandate that called for the company's future manufacturing plants to be built with the ability to add capacity at low cost gives Seymour Semiconductors the option to ________.

A) defer
B) abandon
C) grow
D) contract

Answer 1

Answer:

The Monroe's mandate is to give Seymour Semiconductors the Option to GROW

Explanation:

The company challenges are as a result of competitions from other companies, that do not go head-to-head with Seymour semiconductors. As a result, the market taste for the end products of Seymour Semiconductors begin to change.

The reason is that the customers and cusumers of semiconductors have discovered cheaper and quality/viable alternative to the end products chips. The CEO Lisa Monroe must come up with solution for the technology uncertainty and market difficulty for the products of Seymour Semiconductors. In so doing, she give mandates called for the company's future manufacturing plants to be built with the ability to add capacity at a low cost.

This mandate will give the company the option to grow, in other to survive the market challenges facing its end products. It will lower the price and the quality will still be intact. This will block the loopholes being exploited by the competitors, and the company will grow further.