More Recent Work in the Area of Strategic Management Regarding

question 65

Multiple Choice

More recent work in the area of strategic management regarding Porter's assertion about being stuck in the middle

• A) supports Porter's argument that firms that attempt to simultaneously pursue cost leadership and product differentiation will find themselves at a competitive disadvantage.
• B) contradicts Porter's argument and finds that firms that successfully pursue cost leadership and product differentiation simultaneously can often expect to gain a sustained competitive advantage.
• C) partially contradicts Porter's argument and finds that firms that successfully simultaneously pursue cost leadership and product differentiation can only expect to gain a temporary competitive advantage.
• D) partially contradicts Porter's argument and finds that only firms in certain select industries can successfully simultaneously pursue cost leadership and product differentiation and gain a temporary competitive advantage.

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Definitions:

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces its price, without changing the shareholders' equity.

Common Stock

A type of equity security representing ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Shares Outstanding

This key term represents the aggregate number of issued shares of a corporation held by investors, including restricted shares owned by the company’s officers and insiders.

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares and increases the share price proportionately.