Porter Recommends That a Division with Tight Cost Control, Frequent

question 12

Multiple Choice

Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization, and quantitatively based incentives is required for which of the following generic competitive strategies?

• A) focus
• B) differentiation
• C) cost leadership
• D) focus differentiation
• E) concentration

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Definitions:

Specialization

The process of focusing on and becoming expert in a particular subject or skill.

Production

The process of creating goods and services by combining labor, land, and capital to generate output.

Comparative Advantage

A person's, corporation's, or country's capability to manufacture a good or provide a service with a smaller opportunity cost than that of its competitors.

Absolute Advantage

The ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.