A firm's ability to turn change in its external environment into profit
A)requires just one key resource: information.
B)depends on its ability to respond by changing its capabilities appropriately.
C)is the test of a sustained focus strategy.
D)is always measured by its market share.

Question

Quizplus · Accepted Answer

In order to turn change in its external environment into profit, a firm must be able to respond by changing its capabilities appropriately. This requires the firm to be able to adapt and modify its approach in order to take advantage of new business opportunities. Information is important, but it is not the only key resource needed to be successful. The ability to maintain a sustained focus is also important, but this is more of a long-term strategy that may not be as effective when dealing with rapid changes in the external environment. Market share can be an important measure of success, but it is not the only metric that matters when it comes to adapting to change in the external environment.

A Firm's Ability to Turn Change in Its External Environment