A Well-Conceived Strategy Is Value Creating Producing Excellence in Company

question 22

Multiple Choice

A well-conceived strategy is value creating producing excellence in company performance and is best when the gains are achieved.

• A) in profitability and financial strength.
• B) in competitive strength and market standing.
• C) in developing distinctive competencies and sustainability.
• D) in developing a desirable competitive edge.
• E) All of these

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Definitions:

Economies of Scale

Describe the cost advantages that enterprises obtain due to the scale of their operations, typically resulting in reduced costs per unit with increased output.

Long-run Average Total Cost

The average cost per unit of output when all inputs, even physical capital, are adjustable, over a sufficient time period.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, characterized by a reduction in average cost per unit when output is increased.

Diseconomies of Scale

The phenomenon where production costs per unit increase as the volume of output increases.