What are the strategic implications of a competitively relevant weakness of ongoing legal claims that could prove a threat to financial viability?
A)It would have no strategic relevance because legal claims are a matter of insurance coverage.
B)It demonstrates an absence of competence among the organization's executives.
C)Settlements against the company could result in serious financial consequences.
D)An appropriate strategic response is to move operations generating the legal claims to an offshore location.

Question

Quizplus · Accepted Answer

Ongoing legal claims that pose a threat to financial viability can result in serious financial consequences for the organization, including large settlements as well as negative publicity and damage to reputation. Therefore, it is a strategically relevant weakness that requires immediate attention and action. Options such as moving operations offshore or assuming that it is a matter of insurance coverage are not viable solutions to the problem. While executive competence may be a factor, it is not the only strategic implication of ongoing legal claims.

What Are the Strategic Implications of a Competitively Relevant Weakness