In Evaluating Proposed or Existing Strategies Managers Should

question 24

Multiple Choice

In evaluating proposed or existing strategies managers should

• A) initiate new initiatives even though they don't seem to match the company's internal and external situation.
• B) scrutinize the company's existing strategies compatibility with desired outcomes on a regular basis.
• C) evaluate the firm's business model at least every three years.
• D) ensure core capabilities are incorporated for establishing a competitive advantage.
• E) align existing strategies with new strategies to emphasize incremental gains.

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Definitions:

Profit-maximizing

In economics, this refers to the process by which a firm determines the price and output level that returns the greatest profit.

Profit

is the financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Breaks Even

The point at which total costs and total revenue are equal, leading to no net loss or gain for a business.

P = ATC

P = ATC denotes the point where the price is equal to the average total cost, indicating a break-even point for a firm in the short run.