Consider the following series of independent situations in which a firm is about to make a strategic decision.

Decisions

a. A popular restaurant is considering hiring and training inexperienced cooks. The restaurant will no longer hire experienced chefs.

b. An office supply store is considering adding a delivery service that its competitors do not have.

c. A regional airline is deciding whether to install technology that will allow passengers to check themselves in. This technology will reduce the number of desk clerks required inside the airport.

d. A local florist is considering hiring a horticulture specialist to help customers with gardening questions.

Required

1. For each decision, state whether the company is following a cost leadership or a product differentia-tion strategy.

2. For each decision, discuss what information the managerial accountant can provide about the source of competitive advantage for these firms.