All Competitive Advantages Do Not Accrue to Large-Sized Firms

question 45

Multiple Choice

All competitive advantages do not accrue to large-sized firms.A major advantage of smaller firms is that they:

• A) are more likely to have organizational slack.
• B) can launch competitive actions more quickly.
• C) have more loyal and diverse workforces.
• D) can wait for larger firms to make mistakes in introducing innovative products.

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Definitions:

Refreezing Phase

The stage in Lewin's change management model where new behaviors or changes are solidified into the culture or operational practices of an organization or group.

Rational Persuasion Strategy

Pursues change through empirical data and rational argument.

Legitimate Power

Legitimate power is the capacity to influence other people by virtue of formal authority, or the rights of office.

Cost-Benefit Value

The evaluation of the advantages (benefits) and disadvantages (costs) associated with a particular action or decision.