Group 7: The Coca Cola Company

What is the primary cause of the defective cola production?

• Worker negligence

• Machinery malfunction

• Label misalignment

• Production overload

How many defective colas were identified in total?

• 50%

• 30%

• 20%

• 60%

What issue did the Quality Control Manager (QCM) identify with the cola bottles?

• Packaging material quality

• Label misalignment

• Inconsistent flavor

• Carbonation problems

What was the suggested solution to address the misalignment issue?

• Increase worker workload

• Conduct regular machine inspection

• Ignore the problem

• Stop production permanently

How did the team propose to address worker struggles with machine operation?

• Increase production speed

• Implement a training boot camp

• Replace workers with automation

• Ignore the issue

What tagline was proposed for the limited Christmas edition cola?

• "Cola with a Twist"

• "Festive Cola Delight"

• "Add a Twist to Your Holiday Cheer with Our Festive Cola!"

• "Misaligned Magic Cola"

How did the team suggest to lower the LRATC?

• Hire more workers

• Train the workers

• Regular machine calibration

• Invest in a new labelling machine

What short-run decision is discussed regarding the defective colas?

• Selling them as a limited Christmas edition

• Discarding them immediately

• Donating them to orphanages

• Exporting them to other markets

what justifies the long-term investment in new machinery and training?

• Immediate cost savings

• Short-term profits

• Long-term savings and efficiency

• Maintaining current production levels

What factors need to be considered in the decision-making process?

• Only explicit costs

• Only implicit costs

• Both explicit and implicit costs

• Neither explicit nor implicit costs