Companies Place a Considerable Amount of Attention on Compensation Plans

question 12

Multiple Choice

Companies place a considerable amount of attention on compensation plans because

• A) firms are likely to face stiff penalties from the government if they do not offer competitive wages and salaries.
• B) attracting the right employees with good compensation packages can translate into a competitive advantage.
• C) it is a hygiene factor.
• D) a good compensation plan will be less costly than other parts of the operation.

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Definitions:

Focus Strategy

A competitive approach where a firm concentrates its resources on entering or expanding in a narrow market segment to achieve a competitive advantage.

Market Segment

A sub-group of a larger market made up of consumers or organizations with similar characteristics that lead them to have similar product and service needs.

Niche Customer Group

A specific segment of the market targeted by businesses for their specialized product or service needs.

Differentiation Strategy

A business approach where a company seeks to distinguish its products or services from competitors through quality, design, or unique features.