Sluggish Performance Results Relative to Rivals Are a Reliable Warning

question 19

Multiple Choice

Sluggish performance results relative to rivals are a reliable warning sign that the company has either a weak strategy or poor strategy execution or both.The best way to identify a well-conceived,well-executed strategy is to determine whether the company is experiencing:

• A) a strengthening of its image and reputation among shareholders.
• B) a desirable growth rate in new customer acquisition and favorable customer retention efforts for establishing a strong customer experience.
• C) movement in its operating profit margin,satisfactory returns on investable liquid assets,and elimination of credit access restrictions.
• D) positive trends with the relevant cultural factors related to buyer's choices and product modifications.
• E) All of these.

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Definitions:

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its previous value, usually expressed as a percentage.

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.

Completely Inelastic

A situation in which the demand or supply for a good or service is totally unresponsive to price changes.

Inelastic

Describes a condition where the demand or supply for a good or service is not significantly changed by changes in price.