Cost-leadership strategy always advocates cuts in personnel to achieve cost reduction.

Question

Quizplus · Accepted Answer

While cost reduction is an important aspect of cost-leadership strategy, it does not necessarily involve cuts in personnel. Cost reduction can be achieved through various means such as process improvement, efficient supply chain management, and technology adoption. In fact, some companies adopting cost-leadership strategy may focus on developing and retaining skilled and motivated employees to reduce labor turnover and associated costs.

Cost-Leadership Strategy Always Advocates Cuts in Personnel to Achieve Cost