Competitive priorities define the dimensions on which companies should excel in producing their products or services.Which one of the following statements is TRUE?
A) A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation.
B) It is impossible for a firm to improve cost and quality simultaneously.
C) A firm offering little customization cannot compete simultaneously on the dimension of consistent quality.
D) A firm that competes on the dimension of customization tends have operating systems that are inflexible.

Question

Quizplus · Accepted Answer

A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation. This is because volume flexibility relates to a company's ability to quickly adjust production levels to meet changes in demand, which is particularly important for companies that experience seasonal demand fluctuations. The other statements are false. A firm can improve both cost and quality simultaneously through various strategies such as lean manufacturing, while a company offering little customization can compete on consistent quality by focusing on standardization. A firm that competes on customization tends to have flexible operating systems to allow for personalization.

Competitive Priorities Define the Dimensions on Which Companies Should Excel