When New Coke was introduced, it failed miserably in the market. After removing it from its product line, what did Coca-Cola most likely do with the capacity devoted to producing this product?
A) Shift the excess capacity to the production of other soft-drink products
B) Eliminate the excess capacity by selling all New Coke facilities
C) Fire all the employees involved with the production of New Coke
D) Subcontract the production of New Coke to another producer
E) Decrease the work week of its production line employees

Question

Quizplus · Accepted Answer

The most logical choice would be to shift the excess capacity to the production of other soft-drink products. This would allow Coca-Cola to use their existing infrastructure and resources while still maximizing their productive capacity. Eliminating the excess capacity or firing employees would be costly and inefficient, while subcontracting the production of New Coke to another producer would not make sense as the failure of the product was likely due to Coca-Cola's brand recognition and reputation. Decreasing the work week of its production line employees would not be as effective as shifting excess capacity, and could potentially harm employee morale.

When New Coke Was Introduced, It Failed Miserably in the Market