Explain Why a Company's Strategy Cannot Be Completely Planned Out

question 36

Essay

Explain why a company's strategy cannot be completely planned out in advance and why crafting a company's strategy cannot be a one-time,once-and-for-all managerial exercise.Identify at least 3 factors that account for why company strategies evolve.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Permanent Capital

The portion of a company's capital that is not expected to be paid back or withdrawn within a year, including equity and long-term debt.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Common Stock Dividend Distributable

A liability on the balance sheet representing the amount of dividends declared by a company but not yet paid to shareholders.