If a firm focuses on performing similar activities more efficiently than competitors, this is an example of:

• A. Operational effectiveness.
• B. Strategic positioning.
• C. Productivity frontier.
• D. Tailored value chain.

Answer: (A)

The main idea being tested is operational effectiveness: doing the same activities more efficiently than rivals—performing tasks faster, cheaper, or with higher quality—so execution improves relative to competitors. This focuses on how well a firm carries out standard activities rather than on choosing different activities or shaping a unique market position.

This is why it’s the best fit: the statement centers on beating competitors by improving efficiency in the same set of activities, not by changing what activities are done or how they’re chosen.

Why the other ideas don’t fit as well: strategic positioning involves selecting a unique set of activities or trade-offs to deliver a distinct value proposition, not just doing the same tasks better. The productivity frontier refers to the theoretical upper limit of performance given technology and inputs, which isn’t the same as simply outperforming rivals through efficiency. A tailored value chain implies customizing activities for specific segments or customers, which is a form of differentiation rather than simply increasing efficiency of common tasks.