Question

Dan and Scott head the production and marketing departments, respectively, at KYP Solutions Inc. Dan wants to extend the roll-out date of a new product by two months in order to cash in on an impending decrease in the prices of raw materials. Scott, on the other hand, fears losing out to competition and wants Dan to start production immediately. In an attempt to resolve their conflict, Dan and Scott decide to produce a smaller number of units initially and scale up production once the prices of raw materials have decreased. This method of conflict resolution is known as _____.

A. accommodation

B. distributive negotiation

C. avoidance

D. competition

E. compromise

Answer

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