A Company Pursuing a Focus Strategy

question 13

Multiple Choice

A company pursuing a focus strategy:

• A)attempts to serve all market segments.
• B)concentrates on building market share in one market segment.
• C)typically has more resources at its disposal than a differentiator does.
• D)has a greater impact on costs and revenues. E)produce different offerings for different segments.

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Definitions:

Split-off Point

The stage in a process at which various products become separately identifiable and their costs can be separately assigned.

Joint Products

Two or more products that are produced from a common input.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Opportunity Costs

The benefits a person or business foregoes by choosing one alternative over another.