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What is the significance of enterprise capability and capacity to the process of strategic decision-making and strategic choice?

a. Enterprise capability influences short-term decisions.
b. Enterprise capacity is irrelevant in strategic decision-making.
c. Enterprise capability and capacity guide long-term strategic choices.
d. Strategic decisions are independent of enterprise capabilities.

User Jalbert
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1 Answer

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Final answer:

Enterprise capability and capacity are crucial to strategic decision-making, as they guide long-term strategic choices by determining what a company can achieve and sustain in alignment with its strategic objectives.

Step-by-step explanation:

The significance of enterprise capability and capacity to the process of strategic decision-making and strategic choice is pivotal. Enterprise capability refers to the skills, resources, and competences that a company can utilize to gain a competitive advantage and achieve its strategic objectives. Enterprise capacity, on the other hand, relates to the scale and breadth of resources that a company is able to support and maintain over the long term.

Within strategic decision-making, both capability and capacity play a crucial role in guiding long-term strategic choices. They determine what a company can feasibly accomplish and directly influence the range of options available for strategic movement. Enterprises must align their strategic decisions with their capabilities and capacities to ensure realistic and sustainable outcomes.

Thus, among the given options, the correct answer is c. Enterprise capability and capacity guide long-term strategic choices, as they are integral in defining what an enterprise can and should undertake to meet its strategic goals.

User Mishik
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