Asked by Kaitlyn Gevermuehle on Jun 07, 2024
Verified
A company focuses on growth without considering profitability.Instead of developing a strategy,the firm takes on low-margin business and adds capacity in an effort to grow.What is the likely result?
Low-margin Business
A business that operates with a small difference between the cost to produce goods or services and the selling price, resulting in low profit margins.
Adding Capacity
The process of increasing the potential output of a business to meet expected demand.
- Comprehend the obstacles and approaches for rapidly expanding companies and their potential to encounter difficulties.
- Understand the influence of external forces and market dynamics on the success or failure of a business.
Verified Answer
MW
Mayerz WorldJun 08, 2024
Final Answer :
This is a strategic issue of failure to understand the market niche.When a company adopts this approach,it will eventually run out of cash.
Learning Objectives
- Comprehend the obstacles and approaches for rapidly expanding companies and their potential to encounter difficulties.
- Understand the influence of external forces and market dynamics on the success or failure of a business.
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