Gemini Inc. decided to decrease its product prices to respond to its competitors. To achieve this, the company needed to lower its costs so as to maintain profitability. The managers at Gemini, however, have been buying expensive raw materials and hiring many employees. Which of the following is most likely to be happening in Gemini?

Question

Quizplus · Accepted Answer

Strategic dissonance occurs when a company's current strategies and structure no longer fit with its environment, goals or capabilities. In this case, the managers' decisions to purchase expensive raw materials and hire many employees are not aligned with the company's goal to decrease costs and compete with its rivals, leading to strategic dissonance.