Unit 4 Economy 经济II
coversation1-(1/2)


Hints:
Tom

Jane

The president of a company is having a talk with two of his managers, discussing company strategy. Take a seat, Tom and Jane. Today, I ask you to come, because we need to define a new strategy. But this strategy must be flexible enough to take account of changing market conditions. I agree. Our main objective must be to gain market share, and to achieve this we must reduce prices. Are you sure that if we reduce prices, our market share will increase? Yes, I'm sure. Well, that's probably true, but in my opinion, if we reduce prices, our margins will be lower and our profits will be cut down. There's some truth in what you said, but we can slowly increase production, and with increased production. We'll cut costs. That's really a long-term prospect. Unit costs can only come down if we invest in new plant and machinery.