MTEL Business Practice Exam

Category - Business Operations

Which of the following is the best example of a company changing its strategy?
  1. Site managers decide to reorganize lines of authority to allow workers increased input in decision making.
  2. Human resource managers decide to implement a diversity awareness program throughout the company.
  3. Marketing managers decide to alter the product line to appeal to a niche rather than a general market.
  4. Production managers decide to switch to continuous-flow rather than batch manufacturing.
Explanation
Correct Response: C. A company's strategy is the overall direction that the company is focusing on and planning to follow. Of the choices listed, the decision to change from producing goods for a general market to a niche market is the best example of a change in strategy, since the company is changing its focus and direction. This change will require altering production, finding a new customer base, and developing new marketing channels, etc. Although reorganizing the levels of management structure (A) may be necessary, it is not the best example of a change in strategy. Launching a diversity awareness campaign (B) is likely to improve the work environment and generate new ideas, but it does not represent a significant change in strategy. Changing from batch to continuous-flow manufacturing (D) is a change in the manufacturing process, not the company's strategy.
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