Lag strategies are cost-effective for which type of firms?
A) firms that are labour-intensive
B) firms needing to attract top-quality applicants
C) firms that value employee stability
D) firms that invest heavily in training and development

Question

Quizplus · Accepted Answer

Lag strategies involve delaying investments in new technologies or equipment, which can be a cost-effective approach for firms that rely heavily on labour. These firms can save on costs by not investing heavily in expensive equipment or technology, but instead relying on their workforce to perform tasks. This can be particularly beneficial for firms in industries such as manufacturing or construction, where labour-intensive work is common. Firms that are labour-intensive can benefit from lag strategies because they may not have the resources to make large investments in technology or equipment.

Lag Strategies Are Cost-Effective for Which Type of Firms