Question

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?

a. Is the company's strategy ethical and socially responsible and does it put enough emphasis on good product quality and good customer service?
b. Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?
c. Is the strategy resulting in the development of additional competitive capabilities?
d. Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?
e. Does the strategy strike a good balance

Answer 1

The correct option is 'd' as it directly assesses the long-term effectiveness and success of the company's strategy by evaluating sustainable competitive advantage and company performance.

Step-by-step explanation:

The question asking which of the following tests the merits of the firm's strategy and distinguishes it as a winning strategy is 'd. Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?' A winning strategy would be one that not only supports the ongoing success of the company but also outperforms competitors in a sustainable way. Assessing whether a strategy is ethical, socially responsible, or balances well with growth and profitability (options a and b) are important considerations, but they do not directly assess the strategy's potential for securing long-term success. Option c, regarding the development of additional competitive capabilities, is part of creating a sustainable competitive advantage, but on its own does not fully assess the strategy's overall effectiveness in outperforming competitors. Option d is a more comprehensive assessment because it looks at both competitive advantage and overall performance results.