Crafting and Executing Strategy Are Top-Priority Managerial Tasks Because

question 33

Multiple Choice

Crafting and executing strategy are top-priority managerial tasks because:

• A) it helps management create tight fits between a company's strategic vision and business model.
• B) it allows all company personnel,and especially senior executives,to know the answer to "who are we,what do we do,and where are we headed?"
• C) it is management's prescription for doing business,its roadmap to competitive advantage,a game plan for pleasing customers,and its formula for improving performance.
• D) it provides clear guidance as to what the company's business model and strategic intent are,and helps keep managerial decision-making from being rudderless.
• E) it establishes how well executives perform these tasks and are the key determinants of executive compensation.

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Definitions:

Predatory Pricing

A competitive strategy where a company sets very low prices for its products or services with the intent to drive competitors out of the market.

Break-even Analysis

A calculation that determines when a business or project will be able to cover all its expenses and begin to make a profit.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain scale, such as rent, salaries, and insurance.

Variable Costs

are expenses that change in proportion to the activity of a business, such as sales volumes, including costs of goods sold and direct labor costs.