A firm focusing on _____ will benefit by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity.a.technical skill setsb.core competencyc.organizational advantaged.competitive gains
Question
A firm focusing on _____ will benefit by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity.a.technical skill setsb.core competencyc.organizational advantaged.competitive gains
Solution
The correct answer is d. competitive gains.
Here's the step by step explanation:
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The question is asking about a firm's strategic decision to base its value creation activities in a location that offers the most favorable conditions. This includes economic, political, and cultural conditions, as well as relative factor costs.
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The options provided are technical skill sets, core competency, organizational advantage, and competitive gains.
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Technical skill sets and core competency are both important for a firm, but they are more about the internal capabilities of the firm rather than its strategic location decisions.
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Organizational advantage could potentially be related to location decisions, but it's a broader concept that includes many other factors as well.
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Competitive gains, on the other hand, are directly related to the firm's strategic decisions about where to locate its activities. By choosing the most favorable location, the firm can gain a competitive advantage over its rivals. This could be through lower costs, better access to markets, or other benefits that the location provides.
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Therefore, a firm focusing on competitive gains will benefit by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity.
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