The Integration of a Cost Leadership and a Differentiation Strategy

question 57

Multiple Choice

The integration of a cost leadership and a differentiation strategy:

• A) Is challenging because the firm must become competent in more primary and support activities
• B) Forces a firm to adapt more slowly to changes in its environment
• C) Allows the firm to avoid being "stuck in the middle"
• D) Requires such a large customer base that it is most practical for firms in the global marketplace

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Definitions:

Required Return

Referred to as the expected yield that investors aim for when putting money into an investment, considering its risk profile.

Share Dividend

A share dividend is a payment made by a corporation to its shareholders, usually in the form of additional shares rather than cash.

Retain Earnings

Profits that a company keeps or reinvests in itself instead of distributing to its shareholders as dividends.

Rate Of Return

The enhancement or decline in financial value of an investment over a certain course, characterized as a percentage of the investment's initial outlay.