A Winning Strategy Is One That

question 54

Multiple Choice

A winning strategy is one that

• A) results in a company becoming the dominant market leader.
• B) produces exceptionally high levels of customer satisfaction and is both ethical and highly profitable.
• C) fits the company's internal and external situations, builds sustainable competitive advantage, and improves company performance.
• D) is ethical, socially responsible, and profitable.
• E) builds shareholder value, passes the completeness test, and passes the customer satisfaction test.

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Definitions:

Perfectly Competitive Industries

Industries in which many firms produce identical products, and entry and exit are easy, leading to zero economic profit in the long run.

Homogeneous Product

A product that is considered identical or equivalent by consumers, with no significant differences from other products in the market.

Free Exit

The condition in a market where firms can leave the industry without incurring high costs, facilitating competition and economic efficiency.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, all selling homogeneous products, with no single party having market control.