A Company's Strategy Is a "Work in Progress" and Evolves

question 66

Multiple Choice

A company's strategy is a "work in progress" and evolves over time because of:

• A) the importance of developing a fresh strategic plan every year that keeps employees from becoming bored with executing the same strategy year after year.
• B) the ongoing need to imitate the new strategic moves of the industry leaders.
• C) the need to make regular adjustments in the company's strategic vision.
• D) the ongoing need of company managers to react and respond to changing market and competitive conditions.
• E) the frequent need to modify key elements of the company's business model.

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Definitions:

Internal Rate Of Return

A financial metric used to evaluate the profitability of investments, representing the interest rate at which the net present value of costs and benefits of a project break even.

Salvage Value

The anticipated salvage value of an asset at the termination of its service life.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity, within a year.

Opportunity Cost

The cost of opting for one choice over another, essentially the benefits you could have received by taking an alternative action.