a. Suppose Whole Foods adopts a cost leadership strategy for its new business. What would be the advantages and disadvantages of this strategy

The answer is below

Explanation:

Some of the advantages the Whole Foods will derive when they adopt a cost leadership strategy:

1. The firm will earn more profits

2. The market share will increase

3. There will be more availability of capital for the business growth

Some of the disadvantages the Whole Foods will derive when they adopt a cost leadership strategy:

1. Financial reduction in vital areas of the business that might affect the successful running of the business

2. It lowers innovation in production

3. It promotes the production of lower quality commodities

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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