By Focusing on Efficiency of Operations and Processes, Lower Costs

question 17

Multiple Choice

By focusing on efficiency of operations and processes, lower costs, and delivering good value, Southwest Airlines attempts to build a competitive advantage based on:

• A) production orientation.
• B) customer intimacy.
• C) process improvement.
• D) operational excellence.
• E) strategic efficiency.

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Definitions:

Technological Advance

Refers to the improvement and innovation in technology, leading to increased productivity, better products, or new methods of production.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.

Labor

The human effort, including physical and mental skills, employed in the production of goods and services within an economy.

Demand

The desire accompanied by the ability to pay for goods or services, determining the quantity that will be bought at a given price level.