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Applebee's is the largest casual dining chain in the world, with over 1800 locations throughout the U.S. and also in 20 other countries. The menu features beef, chicken, and pork items, as well as burgers, pasta, and seafood. Applebee's CEO wants to make the restaurant more profitable by developing menus that are tastier and contain more items that customers want and are willing to pay for despite rising costs for gasoline and agricultural products. How might business intelligence help management implement this strategy? What pieces of data would Applebee's need to collect? What kinds of reports would be useful to help management make decisions on how to improve menus and profitability?
What criterion is used to classify a failure cost as internal versus external? Give three examples of an internal failure cost and three examples of an external failure cost.
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Jose runs a mail-order business for gym equipment from his house. Annual demand for its best seller item is 25,000 units. This best seller item has a cost of $292 per unit and
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