The Rationale for Making Strategy-Critical Value Chain Activities the Primary

question 58

Multiple Choice

The rationale for making strategy-critical value chain activities the primary building blocks in a company's organizational scheme is based on:

• A) the much shorter time it takes to build core competencies and competitive capabilities.
• B) the benefit such an organizational scheme has in reducing costs.
• C) the benefit such an organizational scheme has in improving the productivity of geographically scattered organizational units.
• D) the thesis that if activities crucial to strategic success are to have the resources,decision-making influence,and organizational impact they need,they have to be centerpieces in the organizational scheme.
• E) the benefit such an organizational scheme has in making the empowerment of employees more effective.

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Definitions:

Market Driven

A business approach focused on creating products and services based on the existing demands and preferences of the market.

Reactive

Characterized by actions taken in response to external situations or events rather than initiating change proactively.

Competition Driven

A market situation where businesses are highly motivated to outperform their rivals in order to gain greater market share and customer loyalty.

Competitive Advantages

Attributes or circumstances that allow a company or country to produce goods or services at a lower price or in a more desirable manner than competitors.