The Fourth Step of a Small Business' Strategic Planning Process

question 44

Multiple Choice

The fourth step of a small business' strategic planning process involves:

• A) considering the customers and the benefits to offer them.
• B) refining the firm's capabilities in order to maintain a competitive advantage.
• C) determining the best strategic direction and strategy for the firm.
• D) studying the dynamics and trends of the industry.

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Definitions:

Acquiring Firm

A company that purchases a majority interest in another company to take control of it.

Parent

A company that holds a controlling interest in one or more subsidiaries, or an individual who has a child.

Subsidiary

A company that is controlled by another company, known as the parent company, through majority share ownership.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.