The May 10, 2004, edition of the Wall Street Journalincludes an article by Evan Ramstad entitled “A Tight Squeeze” (page R9).
Instructions
Read the article and answer the following questions.
(a) What is Proview‘s profit margin on computer monitors? Why is the profit margin so thin on computer monitors?
(b) What are some of the steps that Proview International has taken to control costs?
(c) Why does the company continue to build tube-based monitors even as many consumers are moving away from them?
(d) Mr. Wang’s final comment is, “Every aspect of the business is important, but the most important is cost.” Why does he feel this way?
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