When Company Managers Are in the Process of Thinking Strategically

question 34

Multiple Choice

When company managers are in the process of thinking strategically about what directional path should be taken by the company, they are not likely to ask which question?

• A)Is the outlook for the company promising if it continues with its present product offerings?
• B)Are changing market and competitive conditions acting to enhance or weaken the company's prospects?
• C)What business approaches and operating practices should we consider in trying to implement and execute our business model?
• D)What strategic course offers attractive opportunity for growth and profitability?
• E)What, if any, new customer groups and/or geographic markets should the company get in position to serve?

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Definitions:

Target Profit

The amount of profit that a company aims to make in a certain period.

Annual Fixed Expenses

Expenses that do not change in total over a period of one year, regardless of the level of activity within a business.

Sales Mix

The combination of different products or services that a company sells, typically analyzed to determine the most profitable mix.

Sales Mix

The combination of products or services that a company sells, reflecting the variation in profit margins for each.