In Strategic Management,both the Short-Term and Long-Term Perspectives Need to Be

question 12

Multiple Choice

In strategic management,both the short-term and long-term perspectives need to be considered because

• A) shareholder value is only measured by short-term returns.
• B) shareholders only care about long-term returns.
• C) long-term vision precludes the analysis of present operating needs.
• D) the creative tension between the two forces managers to develop more successful strategy.

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Definitions:

Celler-Kefauver Act

A United States antitrust law passed in 1950 aimed at preventing anticompetitive mergers and acquisitions that might reduce competition.

Conglomerate Mergers

Mergers between firms that operate in unrelated business activities, aiming to diversify product offerings and risks.

Herfindahl-Hirschman Index

An economic indicator that measures the level of concentration and competition within an industry.

Economies of Scale

Refers to the cost advantage experienced by firms when they increase their level of production. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.