A Company That Follows a Low-Cost Strategy Could Reasonably Be

question 20

Multiple Choice

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

• A) increasing the number of business processes.
• B) adopting lean production and flexible manufacturing technologies.
• C) implementing first-in-first-out inventory control systems.
• D) taking steps to increase customer churn.
• E) abandoning economies of scale and learning effects.

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Definitions:

ERG Theory

A theory in psychology that categorizes human needs into three categories: Existence, Relatedness, and Growth.

VIE Theory

Stands for Valence, Instrumentality, and Expectancy, a psychological theory that explains motivation in terms of an individual's belief in the effectiveness and value of effort towards achieving a goal.

Goal Theory

The concept that setting specific, challenging, and attainable goals can significantly enhance employee performance.

Motivate

The process of providing reasons for people to act in a desired manner.