What Pitfall Does the Use of Strategic Activity Systems Highlight

question 11

Multiple Choice

What pitfall does the use of strategic activity systems highlight when a competitor is considering imitating a rival firm?

• A) Copyright infringement against copying the firm's processes
• B) Compounding effect reducing of the probability of success copying each interconnected system activity
• C) Path dependence of the core activities of the firm
• D) Loss of competitive advantage due to reduction of VRIO

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Definitions:

Variable Cost Per Unit

The amount of variable expenses incurred to produce one unit of a product or service.

Budgeted Hours

The number of hours allocated or planned for a particular task, project, or period, usually part of a financial or operational plan.

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of output under normal conditions.

Actual Production

The quantity of goods or services produced during a specific time period, as opposed to planned or projected output.