Question

In crafting a company's strategy:

Select one:
a. management's biggest challenge is how closely to mimic the strategies of successful companies in the industry.
b. managers have comparatively little freedom in choosing the "hows" of strategy.
c. managers are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility.
d. managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.
e. managers are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-be-different" strategies rarely are successful.

Answer 1

The correct answer is that in crafting a company's strategy, managers should create a sustainable competitive advantage to attract customers and outperform rivals, much like focusing on a core competency can lead to greater success over a wide product range. In crafting a company's strategy, option d is the most accurate: managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.

Step-by-step explanation:

In crafting a company's strategy, option d is the most accurate: managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals. This approach recognizes the importance of differentiating a company in the market to attract and retain customers.

It acknowledges the business reality that executives often prefer situations that minimize competition, similar to the concept of a monopoly. By focusing on a core competency, businesses can often outperform those with a broader but less specialized product range.