The Big Danger or Risk of a Best-Cost Provider Strategy

question 78

Multiple Choice

The big danger or risk of a best-cost provider strategy is

• A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.
• B) not establishing strong alliances and partnerships with key suppliers.
• C) that low-cost leaders will be able to steal away some customers on the basis of a lower price and high-end differentiators will be able to steal away customers with the appeal of better product attributes.
• D) that it will be unable to achieve top-notch quality at a rock-bottom cost.
• E) becoming too highly integrated and not relying enough on outsourcing.

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Definitions:

Duty of Fair Representation

The legal obligation of a union to represent all members fairly, impartially, and in good faith.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in negotiations and labor relations.

National Labor Relations Act

A foundational statute in United States labor law that guarantees the rights of employees to organize and to bargain collectively with their employers.

Strike

A collective decision by union members not to work until certain demands or conditions are met.