The Differentiation Strategy Can Be Effective in Controlling the Power

question 123

Multiple Choice

The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because:

• A) customers will seek out the lowest-cost product.
• B) customers of nondifferentiated products are sensitive to price increases.
• C) customers are loyal to brands that are differentiated in meaningful ways.
• D) the differentiation strategy benefits from rivalry because it forces the firm to innovate.

Describe the management process and its components.

Distinguish between interpersonal, informational, and decisional roles in management.

Comprehend how managers set agendas and prioritize action for organizational goals.

Understand the concept of controlling in the management process.

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Definitions:

Return On Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how well the company uses investments to generate earnings growth.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is used.

Financial Flexibility

The ability of an organization to adapt its financing and investment strategies in response to changes in the marketplace or its own operations.

Fiscal Stress

A situation in which a government struggles to meet its financial commitments or to balance its budget.