To Succeed with a Low-Cost Provider Strategy,company Managers Have to

question 28

Multiple Choice

To succeed with a low-cost provider strategy,company managers have to

• A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
• B) move the performance of most all value chain activities to low-wage countries.
• C) sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.
• D) do two things: (1)perform value chain activities more cost-effectively than rivals and (2)be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
• E) outsource the majority of value chain activities.

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Definitions:

Positive Reinforcement

A behavioral strategy that involves adding a stimulus after a behavior to increase the likelihood of that behavior being repeated.

Negative Reinforcement

A process in operant conditioning where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without further conditioning.

Classical Conditioning

A training technique involving the recurrent pairing of two stimuli, leading to a reaction initially provoked by the second stimulus being ultimately provoked by just the first stimulus.