Final answer:
Lag capacity is not suitable for all types of growth as it is a strategy where a company maintains capacity below demand, beneficial primarily in industries with unpredictable demand or high expansion costs.
Step-by-step explanation:
No, lag capacity is not well-suited for all types of growth. Lag capacity refers to a business strategy in which a company intentionally maintains capacity at levels below current demand. This approach can be beneficial in industries where demand is highly unpredictable or where the cost of expanding capacity is particularly high. However, in markets with steady or predictable growth, or where market share could be lost to competitors due to inability to meet demand, lag capacity can be detrimental. In such cases, leading or tracking capacity strategies might be more suitable, where a company anticipates demand and scales capacity accordingly.