Each of the Five Generic Strategies Positions the Company Differently

question 44

Multiple Choice

Each of the five generic strategies positions the company differently, EXCEPT when it concerns

• A) its market and competitive environment.
• B) establishing a central theme for how the company will endeavor to outcompete rivals.
• C) having resources and capabilities that rivals have trouble duplicating.
• D) defining differences in terms of product line and production emphasis.
• E) defining differences in terms of marketing emphasis and the means of maintaining strategy.

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Definitions:

Efficient Allocation

An economic condition where resources are distributed in a way that maximizes the welfare of society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to the cost of producing it.

Risk

Uncertainty about future outcomes.

Risk-Averse

A description of an individual or organization that prefers to avoid uncertainty and is willing to sacrifice some potential gain to avoid risk.

Expected-Utility Maximizer

An economic concept referring to an individual who chooses between uncertain prospects by comparing their expected utilities.