To Test the Merits of a Firm's Strategy and Distinguish

question 66

Multiple Choice

To test the merits of a firm's strategy and distinguish it as a winning strategy, which major question needs to be addressed?

• A)Is the company's strategy ethical and socially responsible, and does it put enough emphasis on good product quality and good customer service?
• B)Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?
• C)Is the strategy resulting in the development of additional competitive capabilities?
• D)Is the strategy helping the company achieve a sustainable competitive advantage, and is it resulting in better company performance?
• E)Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

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Definitions:

Private Inurement

An illegal practice in nonprofit management where the organization's income or assets are used to unduly benefit individuals with a close association with the entity.

Organization's Funds

Financial resources owned or managed by an organization, used to support its operations, programs, and objectives.

Best Practices

Best Practices refer to the methods, techniques, or processes that are recognized as the most effective and efficient way to achieve desired outcomes in a specific field or industry.

Effective Governance

The process of ensuring that an organization's operations and conduct meet stakeholder expectations and regulatory standards.