Trevor,the human resource manager at XTech,is advising the company's business executives that paying more for labor than competitors can support the company's strategy.Under what conditions might Trevor's idea be most valid?
A) XTech pays more to attract top talent,applying employees' knowledge to be more innovative than competitors.
B) XTech intends to charge more for than competitors for the same kinds of products.
C) XTech hopes other companies will eventually match XTech's pay scale.
D) Labor costs are a large part of XTech's total costs.
E) XTech is developing a low-price strategy that will generate more sales.

Question

Quizplus · Accepted Answer

Trevor's idea would be most valid if XTech is paying more to attract top talent and use their knowledge to be more innovative than competitors. In this scenario, paying more for labor will support the company's strategy by providing a competitive advantage with the use of their talented and creative workforce.

Trevor,the Human Resource Manager at XTech,is Advising the Company's Business