Why Does Michael Porter Recommend Expanding the Customer Base of an Organization

question 77

Multiple Choice

Why does Michael Porter recommend expanding the customer base of an organization in terms of the shared value creation framework?

• A) Doing so could yield significant business opportunities that could improve the standard of living of the poor.
• B) Doing so is the best way to ensure that shareholders have the most legitimate claim on profits made by the organization.
• C) Doing so could be the only way to meet stockholder expectations in a highly competitive market.
• D) Doing so will help to prevent the inclusion of more nontraditional partners into internal firm value chains.

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Definitions:

George Homans

An American sociologist known for his work in social behavior as exchange, contributing significantly to the development of behavioral sociology.

Rational Action

Decision-making behaviors that are consistent with logic and reason, aimed at achieving personal objectives or goals.

Weak Power Networks

Networks characterized by limited influence, resources, or connections among its members.

Required Participation

indicates mandatory involvement in an event, process, or system often implemented to ensure engagement or compliance.