Exam CSCP Topic 3 Question 561 Discussion
Actual exam question for APICS's CSCP exam
Question #: 561
Topic #: 3
Question #: 561
Topic #: 3
A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:
Suggested Answer: A Vote an answer
* Context: A global product is no longer appearing profitable, requiring senior management to take action.
* Options Breakdown:
* A. Analyze product profitability by market segment: This involves examining which segments of the market are contributing to profitability and which are not, providing insight into targeted strategies to improve or discontinue specific segments.
* B. Discontinue the product based on eroding profitability: This is a drastic measure that may overlook profitable segments.
* C. Provide additional incentives to the sales force: This may not address the underlying profitability issues and could increase costs.
* D. Increase promotional activity across all markets: This could be costly and ineffective if the product is fundamentally unprofitable in certain segments.
* Correct Answer Justification: By analyzing product profitability by market segment, senior management can make informed decisions on whether to focus efforts on more profitable segments, adjust strategies, or discontinue specific segments.
References:
* Marketing and profitability analysis literature
* Case studies on strategic decision-making for product lines
* Options Breakdown:
* A. Analyze product profitability by market segment: This involves examining which segments of the market are contributing to profitability and which are not, providing insight into targeted strategies to improve or discontinue specific segments.
* B. Discontinue the product based on eroding profitability: This is a drastic measure that may overlook profitable segments.
* C. Provide additional incentives to the sales force: This may not address the underlying profitability issues and could increase costs.
* D. Increase promotional activity across all markets: This could be costly and ineffective if the product is fundamentally unprofitable in certain segments.
* Correct Answer Justification: By analyzing product profitability by market segment, senior management can make informed decisions on whether to focus efforts on more profitable segments, adjust strategies, or discontinue specific segments.
References:
* Marketing and profitability analysis literature
* Case studies on strategic decision-making for product lines
by Rupert at Oct 10, 2025, 07:51 AM
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