A company can gain a cost competitive advantage by:
A)reorganizing functional departments into cross-disciplinary teams.
B)manufacturing highly customized products.
C)providing extra options on products or services.
D)manufacturing products using high-cost production techniques.

Question

Quizplus · Accepted Answer

By reorganizing functional departments into cross-disciplinary teams, a company can increase communication and collaboration between different areas of the business. This can lead to improved efficiency, reduced duplication of efforts, and potentially lower costs. It can also help to break down silos and encourage greater innovation, which can provide a competitive advantage in the marketplace. Manufacturing highly customized products (B) may lead to higher costs and may not necessarily provide a cost competitive advantage, depending on the market and customer demand. Providing extra options on products or services (C) may also increase costs and may not necessarily provide a significant advantage unless the options are highly valued by customers. Manufacturing products using high-cost production techniques (D) will generally not provide a cost competitive advantage unless there is a strong market demand for the specific product and the company is able to command higher prices.

A Company Can Gain a Cost Competitive Advantage By