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What changes would you expect to see in expenditure cycle

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Question - Martin Ltd has always had a strategy of product differentiation; that is, providing high quality products and extracting a price premium from the market. During the recent economic downturn Martin Ltd has seen its customer base diminish, and decided to move strategically to a cost leadership strategy, that is, to try to sell more products at a lower price.

Required -

(a) What are the implications of this strategy change for the expenditure cycle?

(b) What changes would you expect to see in the expenditure cycle?

Reference no: EM132737662

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