Which of the following are examples of commitments? Which are strategic commitments? What response is each strategic

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Which of the following are examples of commitments? Which are strategic commitments?

What response is each strategic commitment likely to elicit?

a. Fiat announces its intention to build an all-electric car in its Belvidere, Illinois, assembly plant, with plans to sell one million vehicles in the first year. It hires 3,000 additional workers—enough to keep the plant operating at capacity. Fiat then signs contracts with its unions committing to pay all of its Belvidere workers for two full years whether or not production reaches capacity.

b. Airframe manufacturer Embraer currently produces commuter jets that hold up to 90 passengers. Boeing and Airbus produce larger jets that seat at least 120 passengers, but these jets are very old and badly in need of updating. Embraer signs a contract with China Eastern Airlines to develop and produce within five years 200 jets capable of seating

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Economics Of Strategy

ISBN: 9781119378761

7th Edition

Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer

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