Managers consider a few general strategy types in their decision-making processes, including
I. Cost leadership
II. Product differentiation
III. Target costing
A)I and II only
B)II and III only
C)I and III only
D)I, II, and III

Question

Quizplus · Accepted Answer

Cost leadership and product differentiation are well-established and widely used strategy types in the business world. Cost leadership aims to offer products or services at a lower cost than competitors while still maintaining reasonable profit margins. Product differentiation strategies, on the other hand, aim to set the company's products apart from the competition by offering unique features, performance, or other attributes that are valued by customers.

Target costing is a cost management strategy that involves setting a maximum cost for a product or service based on the price that customers are willing to pay. While it is an important strategy for managing costs, it is not considered as a general strategy type in the same way as cost leadership and product differentiation. Therefore, the best choice is A, I and II only.

Managers Consider a Few General Strategy Types in Their Decision-Making