The Basic Strategy Paradigm Suggests That to Maximize Its Profitability

question 23

Multiple Choice

The basic strategy paradigm suggests that to maximize its profitability, a firm should do all of the following, EXCEPT:

• A) choose, according to strategy, any position on the efficiency frontier as all positions are viable.
• B) pick a position on the efficiency frontier that is viable in the sense that there is enough demand to support that choice.
• C) configure its internal operations so that they support the position on the efficiency frontier.
• D) make sure that the right organization structure is in place to execute the strategy.

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Definitions:

Fundamental Attribution Error

The tendency to over-emphasize personality traits and underestimate situational factors when explaining another's behavior.

Internal Factors

Elements within an organization that can influence its performance, including its culture, policies, employee skills, and management capabilities.

External Factors

Elements outside of an organization that can affect its performance and strategies, such as market trends, regulations, and economic conditions.

Projection

A psychological defense mechanism where individuals attribute their own undesirable feelings, motives, or intentions to someone or something else.