An operating income analysis of Paul Reynolds Incorporated revealed the following: Reynolds' operating income gain is consistent with the:
A)product differentiation strategy
B)downsizing strategy
C)reengineering strategy
D)cost leadership strategy

Question

An operating income analysis of Paul Reynolds Incorporated revealed the following:  Reynolds' operating income gain is consistent with the:
A)product differentiation strategy 
B)downsizing strategy 
C)reengineering strategy 
D)cost leadership strategy

Quizplus · Accepted Answer

The operating income gain of the company is consistent with the cost leadership strategy, which focuses on reducing costs while maintaining quality to achieve a competitive advantage. This is supported by the increase in operating income, which indicates that the company has been able to reduce its costs and increase its profitability. Product differentiation strategy focuses on offering unique products or services to stand out in the market, downsizing strategy involves reducing the size of the company to cut costs, and reengineering strategy involves reorganizing business processes to improve efficiency and reduce costs. None of these strategies are directly reflected in the operating income gain of Paul Reynolds Incorporated.

An Operating Income Analysis of Paul Reynolds Incorporated Revealed the Following