Companies pursuing a strategy of low cost are more likely to employ union suppression tactics than companies pursuing a strategy of differentiation.

Question

Quizplus · Accepted Answer

Companies pursuing a low-cost strategy often focus on reducing expenses, including labor costs. Unions and collective bargaining can increase labor costs, which may be at odds with a low-cost strategy. Therefore, these companies may be more likely to suppress unions to maintain lower labor costs. On the other hand, companies pursuing a differentiation strategy may differentiate themselves by offering better working conditions and higher wages, and may be more likely to have positive relationships with labor unions.

Companies Pursuing a Strategy of Low Cost Are More Likely