Of Porter's Generic Business Strategies Involves Controlling Expenses and Lowering

question 137

Multiple Choice

of Porter's generic business strategies involves controlling expenses and lowering product prices targeted at a narrow range of market segments.This is referred to as a __________ strategy.

• A) cost focus
• B) cost leadership focus
• C) differentiation focus
• D) differentiation
• E) profit enhancement

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Definitions:

Stock Market

A public market for the trading of company stock and derivatives at agreed upon prices.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Residual Income

Another term for economic value added (EVA).

Opportunity Costs

The cost of foregone alternatives when a decision is made, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.