One Important Indicator of How Well a Company's Present Strategy

question 78

Multiple Choice

One important indicator of how well a company's present strategy is working is whether

• A)it has more core competencies than close rivals.
• B)its strategy is built around at least two of the industry's key success factors.
• C)the company is achieving its financial and strategic objectives and whether it is an above-average industry performer.
• D)it is customarily a first-mover in introducing new or improved products (a good sign)or a late-mover (a bad sign).
• E)it is subject to weaker competitive forces and pressures than close rivals (a good sign)or stronger competitive forces and pressures (a bad sign).

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Definitions:

Production Labor

The workforce involved in the manufacturing process, whose wages are considered a direct labor cost affecting the cost of goods sold.

Direct Cost

Expenses that can be directly linked to the production of specific goods or services.

Indirect Cost

Costs that are not directly traceable to a specific product or activity, such as overhead, administration, and salaries for management.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are considered a variable cost.