Douclamp, a steel manufacturing company, makes small investments in three iron ore plants in different cities. When one of the plants yields more profit than the others, Douclamp increases its investment in that plant and discontinues its investments in the other plants. In this scenario, Douclamp most likely uses _____.

Question

Quizplus · Accepted Answer

This scenario describes options-based planning. Douclamp is making small investments and then adjusting its course of action based on the performance of each plant, which is characteristic of options-based planning. Reverse planning involves working backwards from a goal to determine the necessary steps, time-based planning involves using deadlines to structure plans, and rigid planning involves sticking to a predetermined plan without adjustments based on new information. None of these approaches are evident in the scenario described.

Douclamp, a Steel Manufacturing Company, Makes Small Investments in Three