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A car manufacturer's marketing manager suggests to the operations manager that they increase the warranty period from 3 to 5 years in order to increase market share - HSC - SSCE Business Studies - Question 14 - 2021 - Paper 1
Question 14
A car manufacturer's marketing manager suggests to the operations manager that they increase the warranty period from 3 to 5 years in order to increase market share.... show full transcript
Worked Solution & Example Answer:A car manufacturer's marketing manager suggests to the operations manager that they increase the warranty period from 3 to 5 years in order to increase market share - HSC - SSCE Business Studies - Question 14 - 2021 - Paper 1
Step 1
C. current quality management strategies could support it.
Answer
The operations manager would be most likely to agree to the suggestion of increasing the warranty period if current quality management strategies could support the extended warranty. This is essential because a longer warranty implies a greater responsibility on the manufacturer to ensure product reliability and quality over an extended period. It reflects an understanding that the product must meet high standards to justify the increased warranty, thereby potentially increasing market share.