Xtringe is a popular sports brand among the elites and the upper middle class. It owns several big factories and franchise stores across the country. It recieves the leather for its shoes from a tannery in Kanpur. In this entire supply chain, who recieves the highest share of profits ?

Xtringe factory owner

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Xtringe franchise store owner

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Tannery owner

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The tannery employee

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Solution

The correct option is A Xtringe factory owner
The factory owner nets the highest share of profits in the entire supply chain. This is because the factory owner is popular and has a reputation. People are willing to pay for the brand due to its reputation and quality standards. The person/group that has the closest link with the end customer and the bigger hold over the market will recieve the biggest slice of the profit pie.

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Similar questions

Q. Rahul is a businessman who owns a company that is popular for its shoes, boots, footwear and other allied accessories. Rahul is hugely dependent on Rohit, a tannery owner in Kanpur, for the supply of leather. Rohit also relies heavily on Rahul, to know the type of leather in demand, in the market, and the quantity required. This particular relationship helps both, Rahul and Rohit, to stay afloat in the market. The following situation explains the concept of __________ between Rahul and Rohit.

Q. Raju is a daily wage labourer and is the only bread winner of the family. He puts in twelve hour shifts for six days in an unclean, dimly lit, and poorly ventilated tannery. Despite toiling hard for the entire day, tanning the animal hide, he recieves only 150 Rupees per day. He recieves no medical leaves, paid leaves, increment and other benefits. Besides, he can be terminated from his contract of employment any time. Raju is a _________ worker

Q. Of all the processes involved in the making of a shoe and its sale in the market, who gets the highest share of profits ?

The ___________ recieves, processes, interprets and stores information coming from senses and sends out the messages destined for the effector. The __________ handles its input and output.

The tannery owners rely on traders for orders and information on the kind of leathers in demand. The traders rely on the tanneries for the supply of leather to be sold in the market. Thus, traders and tannery owners are _________.

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