To Succeed with a Low-Cost Provider Strategy,company Managers Have to

question 80

Multiple Choice

To succeed with a low-cost provider strategy,company managers have to

• A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
• B) move the performance of most all value chain activities to low-wage countries.
• C) sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.
• D) do two things: (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
• E) outsource the biggest majority of value chain activities.

Understand the real rate of interest and its calculation considering inflation.

Distinguish between capital, money, primary, and secondary markets.

Recognize the role of financial markets and intermediaries in the economy.

Identify the economic sectors of industrialized economies and their components.