According to Porter's Competitive Strategies Framework, an Organisation That Sets

question 101

Multiple Choice

According to Porter's competitive strategies framework, an organisation that sets out to be the low-cost producer in its industry is following what type of strategy?

• A)cost defender
• B)cost follower
• C)cost leadership
• D)cost fighter
• E)cost cutting

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment timelines, interest rates, and penalties for late payments.

Net 30

A trade credit term indicating that payment in full is expected within 30 days after the invoice date or goods are received.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Preferred Stock

Equity shares that give investors a claim on a company's earnings before dividends are paid to common stockholders, often with no voting rights.