Question

Strategy is formulated by answering all the following except:

a. Who are our most important customers?
b. Is industry demand growing or shrinking?
c. Will our external auditors certify our strategy?
d. How sensitive are purchasers to price, quality and service?

Answer 1

Strategy is formulated by answering several key questions, including what products to produce, how to produce them, how much output to produce, what price to charge, and how much labor to employ. Questions related to external auditors and purchaser sensitivity are not typically part of the formulation process.

Step-by-step explanation:

Strategy is formulated by answering several key questions, including:

1. What product or products should the firm produce?
2. How should the firm produce the products?
3. How much output should the firm produce?
4. What price should the firm charge for its products?
5. How much labor should the firm employ?

Some examples of questions related to the subject of strategy that are NOT typically included in the formulation process are:

• Will our external auditors certify our strategy?
• How sensitive are purchasers to price, quality, and service?

Instead, these questions focus on specific considerations such as market power, product similarities, and barriers to entry.