Which of the following statements about simultaneously pursuing both a low-cost
strategy and a differentiation strategy is true?
A. Organizations stuck in the middle tend to have higher levels of performance than
those that pursue a low-cost or a differentiation strategy.
B. Focusing on the differentiation of a product will result in reduced costs for a
company.
C. Extremely well managed companies may be able to keep low costs and differentiate
their products.
D. Managers try to gain a competitive advantage by focusing onlyon driving the
company’s costs down below the costs of industry rivals.
E. Managers try to gain a competitive advantage by focusing only on distinguishing an
organization’s products from the products of competitors on dimensions such as product
design, quality, or after-sales service.
The high level of uncertainty in the organizational environment makes establishing
targets and designing measurement systems much easier for managers
A. True
B. False