Strategies and Structures Are Based on the Firm's Core Capabilities

question 56

True/False

Strategies and structures are based on the firm's core capabilities, its strategic alliances, its ability to learn, and its ability to engage all the people in the organization in achieving its objectives.

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Definitions:

Production Costs

The total expense of manufacturing a product, including raw materials, labor, and overhead costs.

Prestige Pricing

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Quality

The level at which a product or service achieves or outdoes the expectations of customers.

Status-conscious Consumers

Consumers who make purchasing decisions based on the perceived status or prestige associated with a product or brand.