Certified Production & Operations Manager (POM) Practice Exam

Which of the following is not a key factor of competitiveness?

1. Price

2. After-sale service

3. Size of organization

4. Product differentiation

The correct answer is: Size of organization

The aspect of competitiveness that is not considered a key factor is the size of the organization. While the size of a company can have some impact on its operations, it does not directly correlate with competitiveness in the ways that price, after-sale service, and product differentiation do. Price is critical in determining competitiveness, as consumers often look for the best value for their money. After-sale service is important for customer satisfaction and can influence repeat business and brand loyalty. Product differentiation allows a company to stand out in a crowded market and can justify higher prices or attract different customer segments. In contrast, a larger organization may benefit from economies of scale, but this does not inherently make it more competitive. Conversely, smaller organizations can be very competitive by offering unique products, superior service, or niche market expertise. Therefore, the size of the organization itself is less influential on competitiveness than the ability to meet customer needs effectively through pricing strategies, service offerings, and unique product features.