In 1985 Michael Porter Suggested Three Generic Strategies

question 34

Multiple Choice

In 1985 Michael Porter suggested three generic strategies:

• A)low delivered cost,differentiation and focus
• B)low price,differentiation and focus
• C)low production cost,high quality and focus
• D)low cost,differentiation and targeting

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Definitions:

Incremental Cash Flows

The additional cash flow a business receives from taking on a new project, used to analyze the profitability of that project.

Investment Requirement

The total capital and resources needed for a project, investment, or venture to proceed.

Time Value

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Payback Period

The time it takes for an investment to generate income or revenue equal to its cost, used to assess the feasibility or risk of an investment.