Strategy Needs to Take Account of Both the Requirements of the Firm's

question 22

Multiple Choice

Strategy needs to take account of both the requirements of the firm's external environment and the firm's own resources and capabilities.Resources and capabilities rather than requirements of the external environment offer a more stable basis for strategy formulation when:

• A)The firm is engaged in the exploitation of natural resources such as petroleum or metal
• B)The external environment is in a state of flux
• C)When the firm is supplying producer goods rather than consumer goods
• D)When the firm is a multinational corporation.

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Definitions:

Harmful Pollutants

Substances released into the environment that can cause harm to human health, ecosystems, and the climate.

Competitive Market

A market structure characterized by a large number of sellers and buyers where no single participant can significantly influence the price of goods or services.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.