Accounting, Behavioral and Control | Q&A

Running head: ACCOUNTING, BEHAVIOURAL AND CONTROL
Accounting, Behavioural and Control
Name of the Student
Name of the University
Author Note

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ACCOUNTING, BEHAVIOURAL AND CONTROL
Table of Contents
Answer to Question one...............................................................................................................2
Answer to Question two...............................................................................................................4
Answer to Question three.............................................................................................................5
References....................................................................................................................................8

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ACCOUNTING, BEHAVIOURAL AND CONTROL
Answer to Question one
1. According to Porter, a strategy should reflect the distinctive value chain which configures
all the key businesses and operations in a unique manner which will be difficult to
imitate. The strategic positioning of a firm usually results in two aspects for a firm. They
either result in premium prices or in lower costs for the firm. In the given scenario, both
Poppy and Iris have positioned themselves to obtain the maximum benefits from the
strengths possessed by them. The main strength of Poppy in comparison to Iris is its
lower cost while the strength of Iris when compared to Poppy is the quality of services
provided by it. The strategic positioning of Poppy is that of a low cost product with its
focus mainly on lower operational and maintenance costs (Martynov et al. 2017).
However, the strategic position of Iris is that of a premium product with its emphasis on
the quicker delivery time and service reputation of the product. Hence, there is a clear
distinction between the strategic positions of both the firms. The positioning of Poppy
mainly focuses on the lower costs which provide more financial profits over a period of
time. However, Iris focuses on positioning itself as a premium product which provides
more quality with a lower delivery time. Hence, the main aim of Iris is to project itself as
an entity providing higher quality despite the higher prices charged by it. The point of
difference in this case being the manner in which the companies market their products to
the general public.
2. Michael Porter suggests that value is the price that someone is willing to pay for a
particular product. This may be created due to the unique features of the product which
meet the requirements of the customers (Wicks, Andrew and Jeffrey 2015). In the given
case, Adam perceives Iris to be more valuable than Poppy. The main source of the value