The Usefulness of the Strategy Canvas in Developing Blue Ocean

question 26

Multiple Choice

The usefulness of the strategy canvas in developing blue ocean strategies rests on its ability to:

• A)Suggest possible applications of frontier technologies
• B)Identify opportunities for recombining existing product attributes in novel ways
• C)Identify unfulfilled customwer needs
• D)Reconfigure a firm's value chain

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Definitions:

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard amount expected, valued at the standard cost.

Variable Overhead

Costs incurred during production that fluctuate with production volume, such as utilities or materials.

Total Variable Overhead Variance

The difference between actual variable overhead costs and the expected (standard) costs for the same period.

Direct Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating the efficiency of labor used in production.