Superior Strategy Execution Capabilities Are the Only Source of Sustainable

question 49

Multiple Choice

Superior strategy execution capabilities are the only source of sustainable competitive advantage:

• A) when strategies are easy for rivals to copy.
• B) because such capabilities are socially complex and develop with experience over long periods of time and thus are hard to mimic.
• C) because there is no substitute for superior strategy execution.
• D) when the only way to achieve success is to ensure the firm out-executes its competitors.
• E) All of these.

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Definitions:

Incremental Costs

The additional costs incurred when producing an additional unit of a product or service.

Fixed Manufacturing Costs

Costs that do not change with the level of production, such as rent, salaries, and insurance, which are incurred regardless of output volume.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Incremental Revenue

The additional revenue generated from a new business activity or decision.