Firms that were successful in the past can fail today because
A) they keep pace with changes in the nature of competition.
B) the company strategy is outdated.
C) their financial situation is resilient.
D) management monitors the relevant environmental factors regularly.

Question

Quizplus · Accepted Answer

The strategy of the firm may be good at one point in time, but it may go astray when the management frame of reference gets out of touch with the realities of the actual business situation. This situation results when management assumptions, premises, or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid.

Firms That Were Successful in the Past Can Fail Today