A Focused Strategy Aimed at Securing a Competitive Edge and Which

question 31

Multiple Choice

A focused strategy aimed at securing a competitive edge and which is based either on low cost or differentiation becomes more attractive when:

• A) it is costly or difficult for multi-segment competitors to put capabilities in place to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.
• B) the industry has many different segments and market niches,thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities.
• C) industry leaders do not see that having a presence in the niche is crucial to their own success.
• D) the target market niche is not overcrowded with a number of other rivals attempting to focus on the same niche.
• E) the target market niche is small enough to limit profitability and the outlook is ripe for differentiating.

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Definitions:

Process Theories of Motivation

Theories that describe how various personal factors, job characteristics, and environmental factors interact to drive motivation and behavior at work.

Expectancy Theory

A motivational theory suggesting that an individual’s motivation is an outcome of how much an individual wants a reward, the assessment of the likelihood that the effort will lead to expected performance, and the belief that the performance will lead to a reward.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources and rewards, influencing their motivation and satisfaction.

Goal-Setting Theory

An organizational framework positing that specific and challenging goals, along with appropriate feedback, facilitate improved worker performance.