Why Does Michael Porter Recommend Expanding the Customer Base of an Organization

question 98

Multiple Choice

Why does Michael Porter recommend expanding the customer base of an organization in terms of the Shared Value creation framework?

• A) Doing so could yield significant business opportunities that could improve the standard of living of the poor.
• B) Doing so is the best way to ensure that shareholders have the most legitimate claim on profits made by the organization.
• C) Doing so could be the only way to meet stockholder expectations in a highly competitive market.
• D) Doing so will help to prevent the inclusion of more nontraditional partners into internal firm value chains.

---

Definitions:

Industrial/Organizational Psychology

A branch of psychology that studies human behavior in the workplace and applies psychological theories and principles to organizations and individuals.

Developmental Psychology

The scientific study of how humans change over the life span, from conception until death.

Testable Hypotheses

A proposition that can be experimentally evaluated to determine its validity.

Existing Theory

An established set of ideas or principles aimed at explaining facts or phenomena, already supported by a significant amount of empirical evidence.