A Company Pursuing the Differentiation or Focused Differentiation Strategy Would

question 68

Multiple Choice

A company pursuing the differentiation or focused differentiation strategy would tend to

• A) have highly efficient systems linking suppliers' products with the firm's production processes.
• B) use economies of scale.
• C) have strong capabilities in basic research.
• D) make investments in easy-to-use manufacturing technologies.

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Definitions:

Outsource Production

The practice of delegating production or manufacturing processes to external firms, often to reduce costs or access specialized skills.

Fixed Costs

Costs that do not change with the amount of goods or services produced or sold, such as rent, salaries, or insurance.

Flash Frozen

A method of preserving food by rapidly freezing it to minimize ice crystal formation and retain quality.

Fixed Costs

Expenses that do not change with the volume of production or sales and must be paid regardless of the business activity level.