Which of the Following Is False with Respect to the Strategy

question 13

Multiple Choice

Which of the following is false with respect to the strategy of cost leadership?

• A)A firm following a strategy of cost leadership is following a generic strategy narrow in scope
• B)A firm can follow a cost leadership strategy through achieving benefit parity by making products with the same B,but at a lower C than its rivals
• C)A firm can follow a cost leadership strategy through achieving benefit proximity by offering a B that is not much less than those of competitors
• D)A firm following a strategy of cost leadership creates more value than its competitors by offering products that have a lower C than those of its rivals
• E)A firm can follow a cost leadership strategy by offering a product that is qualitatively different from that of its rivals

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Definitions:

Sales Capacity

The maximum level of sales that a company can achieve within a given period under normal operating conditions.

Projected Sales

An estimate of the amount of sales that a company expects to achieve in a future period.

External Financing Needed

The amount of money a company must raise from external sources to finance its business activities or growth, beyond what it can generate internally.

Dividend Payout

The portion of a company's earnings distributed to shareholders as dividends.