The directors of X-lam Inc., a manufacturer of electric water heaters, meet to discuss ways to increase their net profit. They decide to manufacture electric toasters and thus invest in a new product line. This investment is an example of a(n)________ decision.

Question

Quizplus · Accepted Answer

The decision to invest in a new product line is a strategic decision as it involves long-term planning and the allocation of resources towards achieving the company's goals. It is not an operational decision, which deals with day-to-day activities, or a managerial decision, which involves managing resources within the company. It is also not a procedural decision, which mainly pertains to establishing and following procedures within a company.

The Directors of X-Lam Inc