Straddling Strategies as an Approach to Strategic Management Is Not

question 50

Multiple Choice

Straddling strategies as an approach to strategic management is not recommended for which reason:

• A) It is an attempt to gain competitive advantage based on over-all low-cost provider of a product or service
• B) Research shows that straddling strategies leads to confusion among managers about the direction of the company.
• C) It is an indication that the firm's managers have not made necessary choices about the business and its strategy
• D) According to Porter straddling strategies is recommended for narrow scope firms that have been successful in the past.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, not on accumulated interest.

Discount Rate

The discount rate applied in the evaluation of discounted cash flow to ascertain the current worth of anticipated future cash flows.

Promissory Note

A fiscal agreement in which one side promises in writing to pay a fixed amount of cash to the other side, either immediately when demanded or on a future agreed date.

Promissory Note

A monetary tool involving a formal commitment from one party to compensate another party with a specific amount of money, either upon request or at an agreed future time.