Additional Case $2\mathrm{.}1$

Benson Manufacturing is a young, small firm that makes computer components and peripherals for assemblers like Dell and Gateway. Benson's market share is highly volatile based on the entrance and exit of competitors into the market. Benson buys raw materials from several suppliers who also supply competitors. The firm has two layers of management between the CEO and the component maker on the line.

The firm's CEO read a book about innovation and organizational change and now wants to look at what $HR$ should do about reorganizing and changing staffing practices. The CEO wants to reduce costs in order to increase profit margins because he believes that margins will continue to shrink.

While productivity and quality are largely functions of the machines used in the process, the CEO still wants to focus on motivating Benson employees. He wants to motivate them by increasing wages through a bonus program, improving working conditions, and providing job security.

Refer to Additional Case $2\mathrm{.}1.$ Based on the current market situation, what business strategy would be best for Benson?

Defender strategy

Differentiated strategy

Tactical strategy