During the 1990s,the Focus of Strategy Analysis Shifted

question 40

Multiple Choice

During the 1990s,the focus of strategy analysis shifted:

• A)From corporate planning to strategic management
• B)To the role of resources and capabilities as a foundation for firm strategy.
• C)To the application of microeconomics to analyze the sources of firm profitability.
• D)To the analysis of value-added as the basis for strategic decisions

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Definitions:

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, which is engaged in the production and distribution of goods or services.

Profit-Maximizing

The process or strategy of adjusting production and sale levels to achieve the highest possible profit with the given resources and market conditions.

MC = MR

This refers to the condition where a firm's marginal cost (MC) is equal to its marginal revenue (MR), often used to determine the profit-maximizing level of output in microeconomic theory.

Perfect Competitor

A theoretical market structure where many firms sell an identical product, entry and exit are easy, and no single firm can influence the market price.