Determine whether the stated disadvantage is created by a capacity-leading strategy or a capacity-lagging strategy: Capital spending on plant early.
A) Capacity-leading strategy
B) Capacity-lagging strategy

Question

Quizplus · Accepted Answer

Capital spending on plant early is a characteristic of a capacity-leading strategy, where a company invests in additional capacity before demand is fully realized. The disadvantage of this strategy is that it requires a significant upfront investment, which may not pay off immediately if demand does not meet expectations. However, it can also provide a competitive advantage by allowing the company to meet increased demand quickly and efficiently.

Determine Whether the Stated Disadvantage Is Created by a Capacity-Leading