7. nora’s nicest knick knacks has produces a variety of products sold as souvenirs. she started out printing local sayings on tee-shirts, e. g., fdny, and purchased plain tee-shirts from a single supplier. since then, she has added coffee mugs, key chains, souvenirs spoons and many other items. for each of these, she has lined up one or more suppliers. how does the change in the sourcing of her inputs affect how much of the value she creates that she gets to capture?

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.