The Sales Director at WebMD Is Calculating Annual Sales Revenue

question 109

Multiple Choice

The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved?

• A)evaluating the firm's internal and external strengths
• B)defining the business and its mission
• C)choosing specific strategies or courses of action
• D)evaluating the strategic plan

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Definitions:

Income Effect

The income effect describes the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Normal Good

A type of good for which demand increases as the income of the consumer increases, holding all else constant.

Wealth Effect

The change in spending and consumption patterns by individuals or households due to changes in their real or perceived wealth.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute away from more expensive goods towards cheaper ones.