Often Many Firms in a Pursuit of Cost Cutting Overly

question 22

Multiple Choice

Often many firms in a pursuit of cost cutting overly concentrate on

• A) overly aggressive price cutting thereby ending up with lower, rather than higher profitability.
• B) reducing costs that can be easily replicated and thus the cost advantage is not sustainable.
• C) the zealous pursuit of cost reduction to the detriment of other important strategy profit moves.
• D) ignoring competitive process or technological breakthroughs.
• E) All of these.

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Definitions:

United States

A country in North America, consisting of 50 states, characterized by its significant global economic, political, and cultural influence.

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and as being a major economic power with one of the world's largest economies.

Opportunity Cost

The price paid for not selecting the immediate next favorable choice during decision-making.

Cellular Telephones

Portable devices that use wireless communication to make and receive phone calls as well as access other services like texting and internet browsing.