As Noted in Strategy Highlight 2

question 41

Multiple Choice

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker became the highly successful firm Sony.However,more recently Sony has not performed very well.To what can this be attributed?

• A) Large competitive pressures in their strategic group has cost Sony much market share and thus revenue opportunity.
• B) A failure to set new stretch goals after accomplishing many of their older ones.
• C) The strategic planning process was highly flawed.
• D) The recent economic downturn was too much for the firm to adjust to.

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Definitions:

Merchandising Firms

Companies that purchase goods at wholesale prices and resell them at retail prices, making a profit on the spread.

Manufacturing Firms

Companies that produce finished goods from raw materials through the use of labor, machinery, and equipment.

Merchandising Firms

Companies that purchase inventory in a finished form for the purpose of reselling it to consumers without further processing.

Manufacturing Firms

Companies engaged in the transformation of raw materials into finished products through the use of labor, tools, machinery, and chemical processing.