2 CREDIBILITY AND COMMITMENT A critical factor in gaining credibility is making sure your organization appears strong on all fronts. In the current scenario, making credible threats or promises is critical if you are to influence GN-Tech's strategy. To do so effectively, you must make sure that your competitors perceive no weaknesses with your organization, which is why you want to clear up all existing problems before engaging with GN-Tech directly. Mark the appropriate category column for each threat. CREDIBLE NOT CREDIBLE THREAT THREAT A multinational retail corporation that has just come out of a second round of bankruptcy in the last five years announces that it is targeting expansion into its biggest competitors' locations, A local pizza restaurant that has been in business for 10 years announces that it is going to create a new pasta menu to compete with a new Italian restaurant that has just opened across the street, A hugely successful computer software company decides that it is going to start competing aggressively in the market for electric cars. A car dealership with locations across five states tells competing dealerships that it is going to start advertising a price guarantee that will undercut any price by 10% DEALING WITH AN UNEXPECTED EVENT You're setting up a meeting with your team to strategize about your rival MDCO Inc. when your colleague Brett walks into your office, "Brixmortar has just threatened to break their contract and walk off the job in Europe." he tells you in a slightly panicked tone. Brixmortar is the construction company in charge of building your overseas facilities, A few years ago, ELX Labs decided to build additional research and manufacturing facilities overseas to expand its global reach. Being a good manager, you expected and planned for some issues while scaling up, but construction problems have escalated over the past year -- and it seems now they have suddenly come to a head. Brixmortar pulling out of the contract would not only cost time and money in the short term, but would also hinder your long-term negotiating positions. With GN-Tech's entrance into the Minichol market fast approaching, you need to resolve this issue as quickly as possible. You need to find a way to prevent Brixmortar from pulling out, as its departure will also hurt your credibility in the market Select an option from the choices below Leak to the press that ELX Labs' relationship with Brixmortar has gotten rocky, making sure to highlight the flaws you see in Brixmortar's handling of this project to shame the company into finishing what it started. " Threaten legal action if Brixmortar pulls out of the existing contract. If Brixmortar fears a long and potentially expensive lawsuit, they are more apt to abide by their existing deal. * Revise the current plan to incentivize Brixmortar to finish by the due date. If the company can meet that due date, it gets a bonus and/or you'll give it the contract for additional overseas facilities in the future