Question

Which of the following is a step in the process of developing strategies for a firm?

1) Study the external environment
2) Study an industry
3) Based on the characteristics of the industry in which the firm chooses to compete strategies that are linked with above average returns should be selected
4) Acquire or develop the critical resources, skills, and assets needed to successfully implement the strategy that has been selected
5) Successful implementation will enable them to meet the pressure and demands

Answer 1

The step in the process of developing strategies for a firm is Based on the characteristics of the industry in which the firm chooses to compete strategies that are linked with above-average returns should be selected. the correct option is 3) Based on the characteristics of the industry in which the firm chooses to compete strategies that are linked with above average returns should be selected.

Step-by-step explanation:

Strategies Associated with Above-Average Returns: In the competitive business landscape, not all strategies guarantee success. The focus should be on those strategies that go beyond average performance, ensuring the firm excels within its industry.

Linked with the Characteristics of the Industry: Industries have unique features such as competition levels, market demand, regulatory environments, and technological factors. Choosing strategies that consider and align with these industry-specific characteristics increases the likelihood of success. the correct option is 3)

Should be Selected: This implies a strategic approach to decision-making. Firms are not passive players; they should actively evaluate and choose strategies that best fit their goals and the demands of the industry they are in.