When the Management Frame of Reference Gets Out of Touch

question 39

Multiple Choice

When the management frame of reference gets out of touch with the realities of the actual business situation,what can happen to the firm?

• A) Management perceptual acuity improves.
• B) Management gets across-the-board raises.
• C) The company business strategy no longer works.
• D) It becomes easier to maintain competitive advantage.

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Definitions:

Low Buyer Power

A market condition where buyers have limited influence over prices or terms due to high supplier concentration or the lack of alternatives.

Low Supplier Power

Refers to a market condition where suppliers have little control over the pricing and terms of sales, giving buyers greater bargaining power.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving tactical and operational decision-making.

Resources and Capabilities

The tangible and intangible assets that a firm utilizes to develop, manufacture, and deliver products or services to its customers.