Michael Porter, a Management Strategy Expert, Developed a Strategic Framework

question 67

Multiple Choice

Michael Porter, a management strategy expert, developed a strategic framework in which a firm has ways to develop a competitive advantage.Which of the following is not one of the ways Porter suggested a firm use to develop a competitive advantage?

• A)Product differentiation
• B)Low cost production
• C)Contribution differentiation
• D)Customer satisfaction

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Definitions:

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the profit earned on an investment by the cost of that investment.

Controllable Margin

The portion of profit or margin that can be directly influenced by management decisions and actions.

Operating Assets

Assets used in the daily operations of a business to generate revenue, including cash, inventory, and equipment.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.