What Term Coined by Michael Porter Describes a Firm That

question 30

Multiple Choice

What term coined by Michael Porter describes a firm that pursues elements of cost leadership and benefit leadership at the same time and in the process fails to achieve either a cost advantage or a benefit advantage?

• A)Five forces
• B)Value creation
• C)Value chain
• D)Stuck in the middle
• E)Generic strategy

---

Definitions:

Imputed Interest Rate

An estimated interest rate used when the actual interest rate is not known or is not applicable, often used in lease agreements or for calculating the present value.

Divisional Contribution Margin

The difference between sales revenue and variable costs in a specific business division, used to cover fixed expenses and contribute to profits.

Divisional Manager

A manager responsible for overseeing a division within a company, including its resources, operations, and performance.

Profit Margin

A financial indicator showing the percentage of income surpassing the cost of goods sold, employed to evaluate a company's financial well-being.