24. The strategy that is based on an organization's
ability to provide a product or service at a lower cost than its rivals is
referred to as:
|
a.
|
discount
|
|
b.
|
differentiation
|
|
c.
|
low-cost
|
|
d.
|
focused
|
ANS: C
25. The
risks involved in using a low-cost strategy include all of the following except:
|
a.
|
attaining significant economies of scale
|
|
b.
|
the ability of competitors to copy the
strategy
|
|
c.
|
management not paying attention to
shifts in the environment
|
|
d.
|
getting “locked in” to a technology and
organization design that is expensive to change
|
ANS: A
26. The
strategy that is based on providing customers with something unique that makes
the organization's product or service distinctive from its competition is
referred to as:
|
a.
|
differentiation
|
|
b.
|
discount
|
|
c.
|
focused
|
|
d.
|
low-cost
|
ANS: A
27. When
organizations overdo product differentiation, it places a burden on which area?
|
a.
|
research and development
|
|
b.
|
financial resources
|
|
c.
|
neither of these places is impacted
typically
|
|
d.
|
it places a burden on both research and
development and financial resources
|