Porter Identified Three Generic Strategies That a Business Could Follow

question 64

Multiple Choice

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?

• A) Broad differentiation
• B) Supplier cost differentiation
• C) Focused strategy
• D) Broad cost leadership

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Definitions:

Deferred Tax

A tax liability or asset that arises due to temporary differences between the book value and tax value of assets and liabilities.

Deferred Tax Asset

A tax benefit that arises from temporary differences between the book and the taxable income, often due to allowances and deductions recognized at different times.

Consulting Fees

Charges imposed by consultants for their professional advice and services rendered to businesses.

Tax Rate

The percentage at which an individual or corporation is taxed on their income.