Effective execution of the cost leadership strategy requires all of the following except:
A)Incentives based on meeting strict quantitative goals.
B)Frequent, detailed control reports.
C)Tight cost control.
D)Structured organization and policies.
E)Strong coordination among functions: research, product development, manufacturing, and marketing.

Question

Quizplus · Accepted Answer

The effective execution of the cost leadership strategy requires strong coordination among functions, including research, product development, manufacturing, and marketing, as stated in option E. Therefore, option E should be included to execute the cost leadership strategy effectively. Whereas, options A, B, C, and D are essential factors that enable an organization to achieve and maintain cost leadership. Hence, except for option E, all other options are necessary for effective execution of the cost leadership strategy.

Effective Execution of the Cost Leadership Strategy Requires All of the Following