What would be a concern addressed in a strategic plan?
Group of answer choices
Should the firm make a long-term commitment to expand into new markets?
Which specific jobs should be assigned to each employee?
How much output should be produced this week in a given production facility?
Which computer software package should the firm’s human resources office use to manage the payroll?
The correct answer and explanation is:
The correct answer is:
“Should the firm make a long-term commitment to expand into new markets?”
Explanation:
A strategic plan is a high-level roadmap that outlines a company’s long-term goals and the major actions needed to achieve them. It focuses on critical concerns such as market expansion, competitive positioning, resource allocation, and sustainability. One of the primary questions addressed in a strategic plan is whether the firm should make a long-term commitment to expand into new markets.
Expanding into new markets requires thorough analysis and long-term decision-making because it affects the company’s growth, competitive advantage, and resource management. The strategic plan will consider factors such as market demand, competition, financial feasibility, regulatory requirements, and risks. The decision to enter a new market also impacts branding, supply chains, and operational capabilities.
Unlike tactical or operational decisions, which focus on short-term actions and specific functions (such as production scheduling or software selection), strategic planning involves broader concerns that influence the company’s direction over multiple years. A well-crafted strategic plan will outline the steps for market expansion, such as market research, entry strategies (e.g., partnerships, acquisitions, or direct investments), and risk mitigation strategies.
Companies that fail to incorporate market expansion into their strategic planning risk losing out on growth opportunities or entering new markets unprepared. By addressing this concern in a strategic plan, a company ensures that its expansion efforts align with its long-term vision, financial goals, and competitive landscape.
Thus, deciding whether to make a long-term commitment to expand into new markets is a fundamental strategic concern that shapes the company’s future trajectory.
Now, I will generate an image related to strategic planning and market expansion.
Here is the generated image depicting a professional business meeting where executives discuss a strategic plan for market expansion. Let me know if you need any modifications!