Which of the Following Strategies Best Illustrates a Generic Business

question 64

Multiple Choice

Which of the following strategies best illustrates a generic business strategy?

• A) A cost-cutting strategy that corporate executives in the headquarters want all business units of a large conglomerate to implement
• B) A strategy to use monetary incentives to motivate employees working on a project
• C) A decision to computerize a firm's database in order to improve customer service
• D) A decision to niche market the jewelry sold by a company while the apparel division under the same company sells its products through mass marketing

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Definitions:

Business Performance

A measure of how effectively a company uses its resources to achieve its objectives and fulfill stakeholder expectations.

Interest Coverage Ratio

A financial metric that measures a company's ability to pay interest on its outstanding debt.

ROE

Return on Equity; a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.