What Is the Plan of Action for a Business-Level Strategy

question 82

Multiple Choice

What is the plan of action for a business-level strategy based on SWOT analysis?

• A)to maximize an organization's ability to create value
• B)to take advantage of favorable opportunities
• C)to choose industries and countries to invest in
• D)to improve task-specific activities within the organization

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Definitions:

Risk Aversion

The tendency to prefer avoiding losses over acquiring equivalent gains; the degree of variability in investment returns that an investor is willing to withstand.

Possible Losses

Potential or anticipated losses, which could be in terms of finances, opportunities, well-being, or other valuable aspects.

Possible Gains

The potential benefits or positive outcomes that might be achieved from a particular action or decision.

Error Management Theory

A theory suggesting that humans are evolved to favor strategies that minimize the more costly type of errors in the dual nature of decision-making errors: false positives and false negatives.