Which of the Following Statements About Simultaneously Pursuing Both a Low-Cost

question 71

Multiple Choice

Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true?

• A) Organizations stuck in the middle tend to have high levels of performance than those that pursue a low-cost or a differentiation strategy.
• B) Focusing on differentiation of a product will result in reduced costs for a company.
• C) Extremely well managed companies may be able to keep low costs and differentiate their products.
• D) Managers try to gain a competitive advantage by focusing only on driving the company's costs down below the costs of industry rivals.
• E) Managers try to gain a competitive advantage by focusing only on distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.

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Definitions:

Model Business Corporation Act

A set of model laws prepared to provide a standard for state corporation statutes and promote uniformity in business law among the states.

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A contract in which the terms and intentions of the parties are stated clearly, either orally or in writing.

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The routine activities and operations conducted by a business or organization on a daily basis.

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