Strategy needs to take account of both the requirements of the firm's external environment and the firm's own resources and capabilities.Resources and capabilities rather than requirements of the external environment offer a more stable basis for strategy formulation when:
A)The firm is engaged in the exploitation of natural resources such as petroleum or metal
B)The external environment is in a state of flux
C)When the firm is supplying producer goods rather than consumer goods
D)When the firm is a multinational corporation.

Question

Quizplus · Accepted Answer

When the external environment is in a state of flux, it is difficult to predict the requirements and adjust the strategy accordingly. In such a situation, relying on the firm's own resources and capabilities provides a more stable basis for strategy formulation. The other options are not necessarily applicable in all situations and do not necessarily support the argument presented.

Strategy Needs to Take Account of Both the Requirements of the Firm's