Podcast
Questions and Answers
What is the primary condition for a firm to achieve a low-cost edge over its rivals?
What is the primary condition for a firm to achieve a low-cost edge over its rivals?
- Its cumulative costs across its overall value chain must be higher than competitors' cumulative costs.
- Its cumulative costs across its overall value chain must be lower than competitors' cumulative costs. (correct)
- Its cumulative costs across its overall value chain must be comparable to competitors' cumulative costs.
- Its cumulative costs across its overall value chain must be equal to competitors' cumulative costs.
What is the primary effect of higher rates of capacity utilization on unit costs?
What is the primary effect of higher rates of capacity utilization on unit costs?
- Reduction in fixed costs per unit (correct)
- Rise in shipping and materials handling costs
- Increase in inventory carrying costs
- Increase in depreciation costs
What are the two major avenues for achieving a cost advantage?
What are the two major avenues for achieving a cost advantage?
- Cost-cutting approaches and revenue-enhancing strategies
- Internal value chain activities and external value chain activities
- Marketing and advertising strategies
- Internal value chain activities and/or value chain system activities (correct)
What is a key factor that can help a firm lower its costs?
What is a key factor that can help a firm lower its costs?
What is the purpose of partnering with suppliers in the context of supply chain efficiency?
What is the purpose of partnering with suppliers in the context of supply chain efficiency?
What is the result of substituting lower-cost inputs with little or no sacrifice in product quality or performance?
What is the result of substituting lower-cost inputs with little or no sacrifice in product quality or performance?
What is an example of how a firm can take advantage of experience and learning-curve effects?
What is an example of how a firm can take advantage of experience and learning-curve effects?
What is the benefit of using a company's bargaining power vis-à-vis suppliers or others in the value chain system?
What is the benefit of using a company's bargaining power vis-à-vis suppliers or others in the value chain system?
What is a benefit of operating facilities at full capacity?
What is a benefit of operating facilities at full capacity?
What is the primary advantage of outsourcing the performance of certain value chain activities?
What is the primary advantage of outsourcing the performance of certain value chain activities?
What is a cost driver that a firm can use to lower its costs?
What is a cost driver that a firm can use to lower its costs?
What is a key consideration when deciding whether to outsource or vertically integrate certain value chain activities?
What is a key consideration when deciding whether to outsource or vertically integrate certain value chain activities?
