Which of the following usually is not a good idea with respect to an overall cost leadership strategy?
A) Offer as many different services as possible to spread overhead costs.
B) Concentrate on routine/standardized services.
C) Replace labor with capital where possible.
D) Perform some service activities off-line at a centralized site.

Question

Quizplus · Accepted Answer

Offering as many different services as possible may increase complexity and reduce the ability to achieve economies of scale and cost savings. It may also require additional resources to manage and train employees on multiple services. A better approach for an overall cost leadership strategy would be to focus on a narrow range of standardized services and streamline operations wherever possible.

Which of the Following Usually Is Not a Good Idea