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:

Negative Punishment

The removal of a stimulus following a given behavior in order to decrease the frequency of that behavior.

Negative Reinforcement

A process in behavior modification that involves increasing the likelihood of a behavior by removing or avoiding an aversive stimulus as a consequence of the behavior.

Positive Reinforcement

A process in which the introduction of a stimulus following a particular behavior increases the likelihood of the behavior's occurrence.

Positive Punishment

A form of behavior modification where something unfavorable is added after a behavior, with the intention of decreasing the likelihood of that behavior being repeated.