A Company's Strategy Evolves Over Time as a Consequence of

question 12

Multiple Choice

A company's strategy evolves over time as a consequence of

• A) the need to keep strategy in step with changing market conditions and changing customer needs and expectations.
• B) the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy.
• C) the need to abandon some strategy features that are no longer working well.
• D) the need to respond to the newly-initiated actions and competitive moves of rival firms.
• E) All of these.

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Definitions:

Marginal Cost

The expenditure involved in producing a further unit of a good or service.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use doesn't diminish another's.

Optimal Quantity

The amount of a good or service that yields the maximum economic benefit or utility.

Cost-Benefit Analysis

A comparison of the marginal costs of a project or program with the marginal benefits to decide whether or not to employ resources in that project or program and to what extent.