Why Do Companies Find Dealing with High Pressures for Both,cost

question 87

Multiple Choice

Why do companies find dealing with high pressures for both,cost reductions and local responsiveness,a difficult strategic challenge?

• A) Cost reductions are inversely proportional to standardization.
• B) Being locally responsive tends to raise costs.
• C) Cost reductions negatively impact maximization of single-plant utilization.
• D) As the quantity produced goes on increasing, it becomes more difficult for a company to achieve economies of scale.
• E) Customer tastes are usually identical across global markets.

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Definitions:

Investment Turnover

A metric assessing how effectively a firm turns asset investments into revenue.

Profit Margin

A financial ratio that shows what percentage of sales has turned into profits, essentially capturing the level of profitability of a company.

Return on Investment

A measure of the gain or loss generated on an investment relative to the amount of money invested.

Budget Performance

The comparison of actual financial outcomes against the planned or budgeted amounts.