Statement–Courses of Action (sales decline diagnostics): Sales of a particular product have fallen sharply, alarming the company; evaluate which course(s) follow—(I) conduct a proper study of rival products, (II) reduce price and improve quality—using a diagnose-then-act framework to avoid premature fixes.

Given data

• Statement: Product sales have dropped considerably.
• Course I: Study rival offerings (features, pricing, positioning) to identify causes.
• Course II: Immediately cut price and improve quality.

Concept / Approach
Effective managerial action starts with diagnosis; remedies should follow evidence, not precede it.

Step-by-step evaluation
Step 1: Course I is a necessary first step to understand whether the issue is price, quality, distribution, seasonality, or competition.Step 2: Course II prescribes specific remedies without evidence; it may be wasteful or counterproductive (e.g., margin erosion if the problem is distribution).Step 3: Therefore only Course I logically follows from the statement as an immediate, justified action.

Verification / Alternative
If after study price/quality gaps are confirmed, targeted adjustments can follow. But such action is not implied yet.

Common pitfalls

• Jumping to generic fixes without isolating the true cause of decline.

Final Answer
Only I follows.