Additional Case 1.2 As the Manager of HR of an Old, Established Company

question 13

Multiple Choice

Additional Case 1.2
As the manager of HR of an old, established company, you are leading the management team in a strategic planning session. During the planning session, managers are being forced to think about the future, see the likely changes in the marketplace, and make plans to use company resources to enhance their competitive edge.
-Refer to Additional Case 1.2.The most likely benefit of this strategic planning session is:

• A) communicating a specific business strategy for the firm.
• B) identifying the constraints and capabilities of the firm's HR.
• C) exploiting and expanding the firm's distinctive capabilities.
• D) identifying gaps between the current situation and a future vision.

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Definitions:

Economic Costs

The total value of all resources used to produce a good or service, including both explicit and implicit costs.

Accounting Profit

The difference between total revenue and explicit costs; it does not account for implicit costs, unlike economic profit.

Total Revenue

The entire amount of income generated by the sale of goods or services before any costs are subtracted.

Economic Costs

The total cost of choosing one action over another, consisting of both explicit costs (direct monetary outlays) and implicit costs (the value of opportunities foregone).