Based on planning and strategic management principles, which of the following start-up companies has the LEAST potential to have a competitive advantage, to be profitable, and to grow?
A) a cat-sitting service, where you take care of people's cats when they are on vacation; you decide to advertise your services on Craigslist and the local newspaper
B) a "companionship" service for elderly people who live alone because their children are busy working full-time jobs; working adults say such a service would be extremely valuable
C) the only farm within a 100-mile radius that offers its customers organic beef and organic dairy products such as eggs and milk; no other local company offers these products
D) a portrait-painting service by a talented artist who is known for his ability to make all men look handsome and all women look beautiful; very few other artists in the local area have this talent
E) an enrichment program for children that hires talented people and sends each of them to a different school each day of the week; a web-based app helps the manager keep track of all the employees' schedules and locations

Question

Quizplus · Accepted Answer

An organization should adopt planning and strategic management for three reasons: They can (1) provide direction and momentum, (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage. The cat-sitting service does not address these three matters; it is easily imitated and therefore does not pass the encourage new ideas test.

Based on Planning and Strategic Management Principles, Which of the Following