+1 862 207 3288 Because the decision about relocating manufacturing operations to the United States is so important,
the board of directors at AutoEdge continues to systematically discuss every aspect of the situation.
The following week, CEO Lester Scholl meets you for coffee to discuss next week’s board meeting.
“I’m hearing good things about you,” he says. “Ingrid and George tell me you’ve been very responsive
and helpful.”
“That’s good to hear,” you say. “I’ve enjoyed working with them.”
“We’re both busy, so I’ll get right to the point,” he says. “One of the main objectives of any business
is to be efficient. Without efficiency, the company is essentially losing money. Am I right?”
“Absolutely,” you say.
“What must AutoEdge do,” he says, “to obtain economies of scale with production? How do we know that it
has achieved economies of scale? Conversely, how do we know if it is achieving diseconomies of scale?”
“That’s a good question,” you say. “I can understand why you ask.”
But before you can respond, Lester’s cell phone rings. After a minute, he ends the call and stands.
“I have to get back to the office to handle an emergency,” he says. “Would you send me an e-mail with
an answer to my questions, please?”
“No problem,” you say. “I’ll get it to you before I leave work this afternoon.”
“I appreciate it,” he says. “Thanks.”
Assume that you are responding to CEO Lester Scholl’s questions.
