Both cost leadership and differentiated firms can improve on execution through:
A)Improved automation and a higher output of products.
B)Benchmarking and total quality management.
C)Cost cutting and downsizing of personnel.
D)Emphasis on research and product development.
E)None of the above.

Question

Quizplus · Accepted Answer

Both cost leadership and differentiation can benefit from benchmarking and total quality management, which can lead to improved efficiency, reduced costs, and improved customer satisfaction. Improved automation (choice A) may primarily benefit cost leaders, while emphasis on research and development (choice D) may primarily benefit differentiated firms. Cost cutting and downsizing (choice C) may negatively impact execution and may not be the best approach for either type of firm.

Both Cost Leadership and Differentiated Firms Can Improve on Execution