An expansionist capacity strategy involves large, infrequent jumps in capacity, where a wait-and-see strategy involves smaller, more frequent jumps.

Question

Quizplus · Accepted Answer

This statement is true. An expansionist capacity strategy involves making large, infrequent investments in capacity, such as building a new factory or acquiring a competitor, to rapidly increase production. In contrast, a wait-and-see strategy involves making smaller, more incremental investments in capacity as demand increases, such as hiring more workers or adding a new production line.

An Expansionist Capacity Strategy Involves Large, Infrequent Jumps in Capacity