Question

Marina manages the supply chain for a company that sells diamond watches. She learns that economists are predicting a moderate to severe recession in the next six to eight months. Based on that information, what action should Marina recommend to the company's owner?A) Increase supply. During recessions, businesses that focus on low-cost solutions make significant profits.B) Reduce supply. Customers generally reduce their purchases of luxury items when the economy falters.C) Maintain the supply at its current rate. Economic forecasts are rarely accurate.D) Wait six months and see what happens. Recessions rarely affect consumer spending.

Answer 1

Answer:

B)

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question Marina should recommend a reduction in supply, because customers generally reduce their purchases of luxury items when the economy falters.  During a recession expensive items that are classified as a luxury like diamond watches in this situation are usually the first things to be cut in customers lives in order to be able to afford necessities.

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