Before Firms Can Progress to the Fourth Stage of Alignment

question 7

Multiple Choice

Before firms can progress to the fourth stage of alignment, they must not only support business strategies but also:

• A)exploit core competencies.
• B)develop a new mission statement.
• C)develop order winners.
• D)abandon order qualifiers.

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Definitions:

Decentralization

The distribution of decision-making powers away from a central authority to lower or local levels of an organization, government, or entity.

Operative Costs

Expenses associated with the day-to-day operations of a business, including salaries, rent, and utilities.

Franchise

A type of license that a party (franchisee) acquires to allow them to have access to a business's (franchisor) proprietary knowledge, processes, and trademarks to sell a product or provide a service under the business's name.

Cost Price Approach

A pricing method that determines the selling price of a product by adding a profit margin to the total cost of production.