Which of the Following Methods of Developing a Strategy Best

question 67

Multiple Choice

Which of the following methods of developing a strategy best illustrates scenario planning?

• A) Based on the previous year's profits, the CEO of Solva Inc. decided to adopt an expansion strategy in its home market.
• B) A sales personnel of MP Foods Inc. suggested that the company should introduce an organic version of its gelato to cater to the needs of the increasing health-conscious population.
• C) The managers at Lyon Clothing Inc. formulated a strategy to tackle any increase in the prices of cotton in the future.
• D) The CEO of BCT Inc., a large conglomerate, has decided to enter the South American market based on the competitor's success in the same market.

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Definitions:

Carrying Amount

The book value of an asset or liability on a company's balance sheet, reflecting its original cost adjusted for factors such as depreciation or amortization.

Anticipated Residual

The estimated value of an asset at the end of its useful life, taking into account depreciation and wear.