Which one of the following situations is an example of overall cost leadership?
A. A dress manufacturer wants to make its product unique in its category.
B. A company that manufactures school desks is looking for ways to make its
desks less expensive than its competition.
C. A restaurant is seeking to reverse a negative trend to get themselves back
to profitability.
D. A large corporation has determined to liquidate parts of its business.
I'll be glad to check your answer.
i think it's D
Ms. sue could u plz check my other questions that i posted
I disagree.
http://infbprpros.tripod.com/overallcostleadership.html
is it B ??
Yes, it's B.
The situation that is an example of overall cost leadership is option B. A company that manufactures school desks is looking for ways to make its desks less expensive than its competition.
Overall cost leadership is a business strategy in which a company aims to become the lowest-cost producer in its industry while maintaining an acceptable level of quality. This strategy allows the company to offer products or services at lower prices than its competitors, giving it a competitive advantage in the market.
To identify the situation that represents overall cost leadership, we need to consider whether the company is focused on reducing costs and aiming for lower prices compared to its competitors. In option A, the dress manufacturer is striving to make its product unique, which suggests a differentiation strategy rather than cost leadership. In option C, a restaurant trying to reverse a negative trend is more focused on turning around its profitability rather than striving for cost leadership. In option D, a large corporation liquidating parts of its business indicates a strategic decision related to restructuring or downsizing, rather than cost leadership.
Therefore, option B, where a company that manufactures school desks is actively looking for ways to make its desks less expensive than its competition, represents an example of overall cost leadership.