An organization wants to improve its competitive cost structure and the ability to offer more competitive prices. Which of the following actions is certain to help them achieve this goal?
A) Hire more employees in order to produce more of the product or service.
B) Increase the quality of the products by using high-quality raw materials.
C) Improve the productivity of the employees of the organization.
D) Use premium pricing strategies to create a strategic brand positioning.
E) Increase the sales and marketing budgets.

Question

Quizplus · Accepted Answer

Improving productivity of employees means getting more output from the same amount of input or fewer resources, which results in lower costs and consequently, lower prices. This will improve the competitive cost structure and the ability to offer more competitive prices without compromising the quality of the products or services. Hiring more employees or increasing the quality of products through the use of high-quality raw materials will increase the production costs, while using premium pricing strategies or increasing sales and marketing budgets may increase the revenues, but they will not necessarily reduce the costs to make the product or service more competitive.

An Organization Wants to Improve Its Competitive Cost Structure and the Ability