Question

1-if a company wants to gain a competitive advantage in a highly competitive industry, it should ideally

1. execute an integrated cost-leadership and differentiation position.

2. provide goods or services similar to its competitors at higher prices.

3. stake out a unique position within the industry.

4. copy the strategies of other firms through competitive benchmarking.

Which of the following forces tends to be more important in determining a firm's performance?

1. the entry barriers in the industry

2. the number and size of other firms in the industry

3. the actions of managers within the firm

4. the underlying economic structure

Answer 1

Answer:- execute an integrated cost-leadership and differentiation position.

Explanation:- Cost-leadership strategy charges low prices as compared to other firms that compete within the target market. Differentiation strategy is used by such firms that want a broad customer base based on their uniqueness. And Integrated cost-leadership and differentiation position involves producing low-cost products with differentiated features. This integrated strategy focuses on two drivers of competitive advantage: cost and differentiation. This is also known as hybrid strategy. This involves investing in both reducing costs and in differentiating your product. So, if a company wants to gain a competitive advantage in a highly competitive industry, it should ideally execute an integrated cost-leadership and differentiation position.

Answer:- the actions of managers within the firm

Explanation:- The actions of managers within the firm are most important among all the options given in determining a firm's performance. The actions of managers can make or break the firm. It provides the direction to the firm in progressing further. Managers are responsible for taking following actions within the firm:-

• Planning
• Organizing
• Staffing
• Leading /Directing
• Controlling /Monitoring

All the above actions taken by managers contributes in determining a firm's performance.