Question

When company managers are in the process of thinking strategically about what directional path should be taken by the company, they are not likely to ask which question?

a) Is the outlook for the company promising if it continues with its present product offerings?
b) Are changing market and competitive conditions acting to enhance or weaken the company's prospects?
c) What business approaches and operating practices should we consider in trying to implement and execute our business model?
d) What strategic course offers attractive opportunity for growth and profitability?
e) What, if any, new customer groups and/or geographic markets should the company get in position to serve?

Answer 1

Managers considering strategic directions for their company typically focus on long-term growth and market adaptation rather than immediate tactical concerns such as product pricing, which is not generally a strategic question.

Step-by-step explanation:

When company managers consider the strategic direction for their company, they are focused on a range of questions that pertain to the company's sustainable growth, adaptability to market conditions, business approaches, operating practices, and the scope for attracting new customer groups or entering new markets. However, one question that is not usually part of this strategic thinking process is "What price should the firm charge for its products?" While pricing is certainly a tactical and operational concern, the strategic direction is more focused on broader scope and long-term considerations, such as product offerings, market and competitive conditions, the company's business model execution, opportunities for growth and profitability, and potential new markets to serve.

The decisions about product production, production processes, output amounts, labor employment, and competitiveness within the industry all relate to both production/cost conditions and market structure. Yet, strategic thinking at the managerial level is more so concerned with where the company is headed rather than the pricing of individual products - a decision often influenced by immediate market conditions and costs.