Gthe managerial task of developing a strategic vision for a company involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense. entails coming up with a concrete plan for how the company intends to make money. entails coming up with a fairly specific answer to "who are we, what do we do, and why are we here? " concerns deciding what approach the company should take to implement and execute its business model. is chiefly concerned with addressing what a company needs to do to successfully outcompete rivals in the marketplace.

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow