Which of the Following Statements Is True About Strategic Groups

question 35

Multiple Choice

Which of the following statements is true about strategic groups?

• A)They identify allies in business groups.
• B)The firms within each group are unlikely to target the same customer segment.
• C)The firms within each group compete in similar ways.
• D)They exclude rivals who share a similar business model.

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Definitions:

Geographic Immobility

Refers to the inability or reluctance of labor force or resources to move from one location to another, often due to economic, social, or personal factors.

Compensating Differences

Wage differentials that are paid to workers to offset the undesirable aspects of a job or to compensate for risks associated with the job.

Divergence

The act or process of developing in different directions or deviating from a standard.

Compensating Differences

Wage differentials that compensate workers for undesirable job attributes, like risk of injury or undesirable hours.