How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth?
A) Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry.
B) Compare the firm's financial ratios over the most recent one-year period.
C) Compare the financial ratios of all firms in the country's industry-some of whom serve very diverse market segments and have specialized accordingly.
D) Compare the financial ratios of firms in the company's strategic group.

Question

Quizplus · Accepted Answer

Comparing the financial ratios of firms within the same strategic group allows managers to assess their competitive position accurately, as these firms target similar customers and have comparable resources and capabilities. This comparison provides a relevant benchmark for performance during periods of unusual economic growth.

How Should Managers Assess Changes in Their Firm's Competitive Position