What Is the Effect of Redefining the Business Mission of a Mattress

question 137

Multiple Choice

What is the effect of redefining the business mission of a mattress manufacturer as "a good night's sleep," rather than stating the mission as "the manufacture of high-quality mattresses"?

• A) It stifles creativity in discovering opportunities to serve customers.
• B) It is too broad a statement to be of any real use in serving customers.
• C) It helps ensure that the firm retains its focus on consumers and does not become preoccupied with its products and internal needs.
• D) It ensures that the core products will be retained.

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Definitions:

Interest Rate

The percentage of an amount of money charged for its use per period of time.

Investment Projects

Initiatives requiring capital investment aimed at generating economic returns over time, such as infrastructure development, real estate, or new product development.

Capital Goods

Long-lasting goods that are used in the production of other goods and services, such as machinery, buildings, and equipment.

Loanable Funds

The money available for borrowing in the financial markets, comprising savings by households and businesses that can be loaned to others who seek to invest or spend more than their current income.