Megan owns a company that makes specialized components for the auto industry. Her most important customer is a company that is growing at a rate of 25% per year. Megan is working hard to grow her firm, because she knows that unless her company continually grows it will not be able to keep pace with the growth of its most important customer. This examples illustrates the reason for growth referred to as:
A) capturing economies of scope
B) executing a scalable business model
C) market leadership
D) influence, power, and survivability
E) need to accommodate the growth of key customer

Question

Quizplus · Accepted Answer

The reason for growth referred to in the example is the need to accommodate the growth of a key customer. Megan's company needs to grow in order to keep up with the demand from their most important customer, which is growing at a rate of 25% per year. This is an example of the importance of growth for the purposes of meeting customer demand and maintaining customer relationships.

Megan Owns a Company That Makes Specialized Components for the Auto