Rapid-Built Homes Specializes in Low-Cost Prefabricated, Modular Homes That Can

question 83

Multiple Choice

Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a matter of days anywhere in the country.Rapid-Built focuses on entire subdivisions of homes developed by real estate speculators.ModernModular Homes (ModMod) specializes in modular homes designed by architects, which can be built anywhere in the country.The buyers usually build the home themselves from kits on their own lots.ModMod sells fewer than 100 house kits per year.ModMod is run by two professors of architecture as a sideline business.According to the framework of competitive analysis, Rapid-Built and ModMod:

• A) are direct mutually acknowledged competitors.
• B) have high resource similarity.
• C) have high market commonality.
• D) are probably not engaged in intense competitive rivalry.

---

Definitions:

Production Goal

A specific target or objective related to the output of goods or services that a company aims to achieve.

Upper Management

The highest level of managers within an organization, responsible for making overarching decisions and setting strategic directions.

Costs of Production

The total expenses incurred in the process of producing or manufacturing goods and services, including materials, labor, and overhead.

Functionally Organized Firm

A company organized according to the functions each part of the organization performs, such as marketing, sales, and production.