If a firm has staked out a low-cost position, it:
A) needs to focus more on procuring low-cost labor.
B) needs to ensure that efficiency is the principal focus of its structure.
C) must focus on the 'one best method' of doing a particular task.
D) needs to focus more on the effectiveness of its structure.

Question

Quizplus · Accepted Answer

If a firm has staked out a low-cost position, it needs to ensure that efficiency is the principal focus of its structure. This means that the firm should focus on streamlining its operations, reducing waste and inefficiencies, and maximizing productivity in order to drive down costs and maintain its competitive advantage. Procuring low-cost labor or focusing on the 'one best method' may be strategies for achieving this goal, but they are not the primary focus. The effectiveness of the firm's structure is important, but it is secondary to its efficiency in achieving a low-cost position.

If a Firm Has Staked Out a Low-Cost Position, It