A Company That Successfully and Methodically Applies Six Sigma Methods

question 38

Multiple Choice

A company that successfully and methodically applies Six Sigma methods to its value chain, activity by activity, can

• A) clearly consider what it will take to overtake rivals with the industry's overall best strategy.
• B) make major strides in improving the proficiency with which its strategy is executed without sacrificing innovation.
• C) increase its bargaining power with suppliers and create better seller-supplier collaborations.
• D) assess the extent to which rivals have competitively valuable competencies or capabilities.
• E) construct a business model that entails a value proposition based on quality.

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Definitions:

Beta Coefficient

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than market volatility.

Systematic Risk

The inherent risk that affects the entire market or economy, and cannot be avoided through diversification.

Unsystematic Risk

The danger linked to a particular business or sector, which can be lessened by spreading investments across different areas.

Well-Diversified Portfolio

A collection of investments across various asset classes and industries intended to reduce risk through the principle of diversification.