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Management · Q327

Strategic Management

Graduate and Post Graduate · Management · question 327

Q327

Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except:

A.
negotiating and maintaining ongoing relations with regulatory bodies
B.
marketing expertise increasing a firm's revenues and enabling it to enter new markets
Answer
C.
effective information systems contributing significantly to a firm's overall cost leadership strategy
D.
top management providing a key role in collaborating with important customers

Answer: Option B

Solution

Answer: Option B
Solution:
Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except marketing expertise increasing a firm's revenues and enabling it to enter new markets. Firm infrastructure refers to an organization's structure and its management, planning, accounting, finance and quality-control mechanisms.