Answered: Which is NOT one of the 3 Tests of a…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Which is NOT one of the 3 Tests of a Winning Strategy?

A) Is the strategy well matched to external conditions?

B) Is the strategy modified regularly to keep it fresh and consistent?

C) Does the strategy fit with internal company resources and capabilities?

D) Does the strategy result in strong financial performance?

E) Does the strategy result in a sustainable competitve advantage?

Expert Solution

Introduction

A winning strategy is a well-thought-out plan that helps a company achieve its goals and gain a competitive advantage in its market. A winning strategy should take into account the company's strengths, weaknesses, opportunities, and threats, as well as external factors such as market trends and competition. A successful strategy should also align with the company's resources and capabilities, and result in a sustainable competitive advantage. To determine if a strategy is a winning one, it is commonly evaluated using three tests:

Is the strategy well matched to external conditions?

Does the strategy fit with internal company resources and capabilities?
Does the strategy result in a sustainable competitive advantage?
A strategy that passes these tests is considered more likely to succeed and lead to long-term growth and success for the company.