Up Until Three Years Ago, A

question 21

Multiple Choice

Up until three years ago, A.C. Dime opened an average of ten new retail stores a year. One of every ten new stores had to be closed within two years due to poor sales. This 90 percent success ratio was fairly steady for over 30 years. Starting three years ago, the firm has opened 40 new stores and every one had significant profits within six months. Management believes their recent success is not just a random event and that all future stores will be profitable. Thus, the managers have decided to open a minimum of 15 new stores each year. The managers are suffering from:

• A) arbitrage limitations.
• B) anchoring and adjustment.
• C) aversion to ambiguity.
• D) the clustering illusion.
• E) myopic aversion.

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Definitions:

Networked Cultures

Social and organizational cultures that are formed and operate through digital networks and communication technologies, facilitating global connections.

Trust

Confidence in the reliability, truth, ability, or strength of someone or something.

Communicate

The act of conveying information or expressing ideas and feelings through speech, writing, signals, or behavior to effectively share meanings.

Spiritual Culture

Refers to the beliefs, practices, rituals, and values that connect individuals to a sense of something greater than themselves, often manifesting in organizational settings as values that guide behavior and decision-making.