When a Company Performs a Value Creation Activity in the Optimal

question 21

Multiple Choice

When a company performs a value creation activity in the optimal location for that activity, wherever in the world that might be, they are trying to capitalize on

• A) location economies
• B) economies of scope.
• C) the transnational strategy.
• D) economies of scale.
• E) their localization strategy.

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Definitions:

Knowledge And Skills

The theoretical understanding and practical abilities acquired through education, training, and experience.

Job Characteristics Model

A theory that proposes that the nature of a job itself affects employee motivation, satisfaction, and performance, based on five core dimensions: skill variety, task identity, task significance, autonomy, and feedback.

Competent

Possessing the necessary skills, knowledge, and ability to perform a specific task or job effectively.

Confident

The state of feeling certain about the truth of something or having a firm belief in one's abilities, quality, and judgment.