Question

Competitive priorities define the dimensions on which companies should excel in producing their products or services. Which one of the following statements is true?

a. A firm offering little customization cannot compete simultaneously on the dimension of consistent quality.
b. A firm that competes on the dimension of customization tends to have operating systems that are inflexible.
c. It is impossible for a firm to improve cost and quality simultaneously.
d. A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation.

Answer 1

b. A firm that competes on the dimension of customization tends to have operating systems that are inflexible.

Step-by-step explanation:

It is correct to say that a company that competes in the customization dimension tends to have inflexible operating systems, because product customization is a different process from mass production, as the demand is different, the customization process takes longer and therefore requires inflexible operating systems.