The directors of X-lam Inc., a manufacturer of electric water heaters, meet to discuss ways to increase their net profit. They decide to manufacture electric toasters and thus invest in a new product line. This investment is an example of a(n) ________ decision.

Question

Quizplus · Accepted Answer

The decision to invest in a new product line is a strategic decision, as it involves a long-term commitment that will affect the overall direction of the company. Operational decisions relate to day-to-day activities, managerial decisions involve overseeing employees and resources, procedural decisions involve creating protocols and guidelines, and technical decisions involve choosing the best technology to use.

The Directors of X-Lam Inc