Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization, and quantitatively-based incentives is required for which of the following generic competitive strategies?
A)focus
B)differentiation
C)overall cost leadership
D)focus differentiation
E)concentration

Question

Quizplus · Accepted Answer

Porter recommends a tight cost control and well-structured organization for overall cost leadership strategy, in which the key focus is to deliver products or services at a lower cost than competitors while maintaining acceptable quality. The frequent detailed control reports and quantitatively-based incentives enable the division to continuously improve their cost efficiency and stay competitive. The other options, focus and differentiation, require different organizational capabilities and incentives to support their respective strategies.

Porter Recommends That a Division with Tight Cost Control, Frequent