Valuable Capabilities

question 99

Multiple Choice

Valuable capabilities:

• A) allow the firm to exploit opportunities in its external environment.
• B) allow the firm to neutralize threats in its internal environment.
• C) allow the firm to exploit opportunities or neutralize threats in its external environment.
• D) allow the firm to neutralize opportunities in its internal environment.

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Definitions:

Optimal Behavior

Actions or decisions that maximize the benefit or utility to an individual or entity under given constraints.

Payoff Matrix

A table that shows the potential outcomes of different strategies in a competitive situation, typically used in game theory.

Strategic Choice

The decision-making process in the context of strategic management, where leaders select the best course of action to achieve organizational goals.

Payoff

In game theory, the reward received by a player (for example, the profit earned by an oligopolist).