Which of the Following Is False with Respect to the Strategy

question 13

Multiple Choice

Which of the following is false with respect to the strategy of cost leadership?

• A)A firm following a strategy of cost leadership is following a generic strategy narrow in scope
• B)A firm can follow a cost leadership strategy through achieving benefit parity by making products with the same B,but at a lower C than its rivals
• C)A firm can follow a cost leadership strategy through achieving benefit proximity by offering a B that is not much less than those of competitors
• D)A firm following a strategy of cost leadership creates more value than its competitors by offering products that have a lower C than those of its rivals
• E)A firm can follow a cost leadership strategy by offering a product that is qualitatively different from that of its rivals

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Definitions:

Span of Control

The number of direct reports that a supervisor or manager can effectively manage.

Optimum Span

The ideal range or limit within which a specific condition or variable yields the best performance or outcome.

Management Overhead

Represents the costs associated with administrative and management functions that are not directly related to production or service delivery.

Tall Structure

An organization structure that has narrow spans of control and many hierarchical levels.